Unitized Endowment Pool - UEP

AAA

DEFINITION of 'Unitized Endowment Pool - UEP'

A form of endowment investing that has mechanics similar to that of a mutual fund. A unitized endowment pool allows multiple endowments to invest in the same pool of assets.

Each endowment owns individual units in the unitized investment pool, and the units are generally valued monthly. New endowments entering the pool can buy in by receiving units in the pool that are valued as of the buy-in date.

INVESTOPEDIA EXPLAINS 'Unitized Endowment Pool - UEP'

A Unitized Endowment Pool (UEP) can be thought of as a mutual fund on a bigger scale. While even small endowments likely have a substantial amount of cash to invest, it may be beneficial to pool together with other endowments for diversification. Units act like shares in a mutual fund, and also serve to clearly segregate each endowment's share in the pool.

For example, a UEP with market value of $100 million may have 100,000 units that are worth $1,000 each. An endowment with $20,000 can buy 20 units of the pool.

RELATED TERMS
  1. Endowment

    A financial asset donation made to a non-profit group or institution ...
  2. Mutual Fund

    An investment vehicle that is made up of a pool of funds collected ...
  3. Prospectus

    A formal legal document, which is required by and filed with ...
  4. Private Foundation

    A charitable organization that, while serving a good cause, does ...
  5. Endowment Fund

    An investment fund set up by an institution in which regular ...
  6. Historic Pricing

    A method for calculating the value of an asset using the last ...
Related Articles
  1. How To Pick A Good Mutual Fund
    Mutual Funds & ETFs

    How To Pick A Good Mutual Fund

  2. Published Mutual Fund Returns Not Always ...
    Mutual Funds & ETFs

    Published Mutual Fund Returns Not Always ...

  3. A Brief History Of The Mutual Fund
    Retirement

    A Brief History Of The Mutual Fund

  4. How do university endowments work?
    Investing

    How do university endowments work?

Hot Definitions
  1. Halloween Strategy

    An investment technique in which an investor sells stocks before May 1 and refrains from reinvesting in the stock market ...
  2. Halloween Massacre

    Canada's decision to tax all income trusts domiciled in Canada. In October 2006, Canada's minister of finance, Jim Flaherty, ...
  3. Zombies

    Companies that continue to operate even though they are insolvent or near bankruptcy. Zombies often become casualties to ...
  4. Witching Hour

    The last hour of stock trading between 3pm (when the bond market closes) and 4pm EST. Witching hour is typically controlled ...
  5. October Effect

    The theory that stocks tend to decline during the month of October. The October effect is considered mainly to be a psychological ...
  6. Repurchase Agreement - Repo

    A form of short-term borrowing for dealers in government securities.
Trading Center