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. Gross Rate Of Return

    The total rate of return on an investment before the deduction of any fees or expenses. The gross rate of return is quoted ...
  2. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
  3. Leading Indicator

    A measurable economic factor that changes before the economy starts to follow a particular pattern or trend. Leading indicators ...
  4. Wage-Price Spiral

    A macroeconomic theory to explain the cause-and-effect relationship between rising wages and rising prices, or inflation. ...
  5. Accelerated Depreciation

    Any method of depreciation used for accounting or income tax purposes that allows greater deductions in the earlier years ...
  6. Call Risk

    The risk, faced by a holder of a callable bond, that a bond issuer will take advantage of the callable bond feature and redeem ...
Trading Center