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. Earnings Per Share - EPS

    The portion of a company's profit allocated to each outstanding ...
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?

comments powered by Disqus
Hot Definitions
  1. Elasticity

    A measure of a variable's sensitivity to a change in another variable. In economics, elasticity refers the degree to which ...
  2. Tangible Common Equity - TCE

    A measure of a company's capital, which is used to evaluate a financial institution's ability to deal with potential losses. ...
  3. Yield To Maturity (YTM)

    The rate of return anticipated on a bond if held until the maturity date. YTM is considered a long-term bond yield expressed ...
  4. Net Present Value Of Growth Opportunities - NPVGO

    A calculation of the net present value of all future cash flows involved with an additional acquisition, or potential acquisition. ...
  5. Gresham's Law

    A monetary principle stating that "bad money drives out good." In currency valuation, Gresham's Law states that if a new ...
  6. Limit-On-Open Order - LOO

    A type of limit order to buy or sell shares at the market open if the market price meets the limit condition. This type of ...
Trading Center