Endowment Fees

CEF Fee Structure Effective July 1, 2001 (Revised October 2003)

Description	Fees in Basis Points 1	As a Percent of Endowment Principal	Annual Amount for CEF Market Value of $1 Billion
External Managers	40 2	.4%	$4,000,000
UW Treasury Office	20	.2%	$2,000,000
University-wide development activities	80	.8%	$8,000,000
Totals	140	1.4%	$14,000,000
1 Basis Points: One hundredth of a percentage point (.01%). Basis points are often used to measure changes or differences in returns. 2 Netted against investment returns.

 

Other Fees and Assessments on Gifts

Endowed Gifts

Charges to Income	Investment	Account	Distribution	Distribution Recipient
Before Investment in CEF	Invested Funds Pool	Suspense Account	All income and realized gains net of investment management fees	Development
After Investment in CEF	CEF	Endowment principal account	1.25% per quarter of 12 quarter moving average market value	First two quarters to Development (aka "Parking"). Thereafter, to endowment operating account.

Current Use Accounts

Source	Investment	Account	Income Allocation	Recipient
Endowment Distributions	Invested Funds Pool*	Endowment Operating	3% of Invested Funds Pool earnings (3% applied to 12 month average balance)	Support Development
			Earnings above 3%	General University Support
Current Use Gifts	Invested Funds Pool*	Outright Gift Budget	3% of Invested Funds Pool earnings (3% applied to 12 month average balance	Support Development
			Earnings above 3%	General University Support

*Gift principal is guaranteed in the Invested Funds pool