Office of Finance
The Office of Finance is responsible for the oversight and management of the University’s Consolidated Endowment Fund (CEF) which had a market value of $5.5 billion at June 30, 2022. The CEF supports financial aid, scholarships, faculty positions, and research activities and links past, current, and future generations of University stakeholders, including students, faculty, and staff.
To achieve that goal, the primary investment objective of the CEF is to earn a rate of return that is sufficient to support a prudent spending policy and preserve the CEF’s inflation-adjusted asset value. Download the Statement of Governance, Investment Objectives and Policies for the CEF (PDF).
The CEF is an investment pool composed of more than 2,900 individual endowment funds, all with designated purposes and restrictions, that are commingled to facilitate more efficient investment. Each endowment fund that the University accepts has a clearly stated, legally binding purpose for the assets provided to which the University must adhere. Additionally, the legal documents accompanying CEF investments typically include confidentiality provisions that prevent the University from disclosing specific investments or investment managers.
This chart indicates the defined purposes for Pitt’s CEF funds. These endowed gifts provide perpetual financial support for scholarships, fellowships, faculty chairs, instruction, and other University programs and services.
Note that “Other Purposes” include research, library and public service, general and undesignated funds, long-term reserve fund, and development and institutional support. The University provides postretirement medical and life insurance benefits to eligible employees and their spouses upon retirement through a contributory benefit plan. The University has elected to fund its postretirement liability via a designated endowment fund that is managed within the CEF and referred to as postretirement reserves.
To effectively manage the endowment, the primary responsibilities of the Office of Finance include:
- Recommendation and review of asset allocation and spending policies
- Monitoring compliance with CEF policies, objectives and risk parameters, including not applying non-financial constraints to investment holdings of the CEF
- Portfolio rebalancing within the ranges set forth in the asset allocation policy
- Development and implementation of both strategic and tactical investment decisions
- Investment manager identification and selection including investment and operational due diligence as well as ongoing monitoring
- Monitoring and reporting of investment performance and benchmarking analyses
- Development of annual peer benchmark comparison reporting as a means to evaluate the CEF’s performance and manager selection
- Selection of custodian bank ensuring safeguarding of assets under custody
- Reporting to the Investment Committee as well as providing reports to University departments and donors
- Establishing and maintaining internal controls, processes and systems to accurately safeguard, report on, and account for CEF financial assets
- Accounting and financial reporting of the CEF in accordance with GAAP including audited financial statement footnote disclosures
- Maintaining and implementing the Environmental, Social and Governance (“ESG”) Policy for the CEF and integrating ESG factors into the decision-making process
We are always looking to work with new partners so please contact us if you have an opportunity for us to consider.