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Individual units may participate in the Group Income Pool (GIP) if they:

• Have approval for all transfers into GIP from the Dean of the College or equivalent administrative officer (Twin Cities Campus) or Chancellor's office (Coordinate Campus) and the approval of the Chief Financial Officer (CFO) and Chief Investment Officer (CIO)
• Meet the minimum initial deposit and subsequent deposit minimums
• Have a positive fund DeptID balance

The Group Income Pool (GIP) is a unitized investment pool whose Net Asset Value (NAV) is calculated monthly, and represents the financial assets held as long-term reserves by various operating units of the University.

Participation in GIP requires a minimum of $25,000 as an initial deposit and subsequent deposits must be in increments of at least $10,000. Participants may enter or contribute additional resources to the account at the beginning of each quarter by purchasing units based on the previous quarter's NAV. A 30-day advance notice to the Office of Investments and Banking (OIB) is required prior to the purchase of such units. Reserves deposited in GIP are subject to a 12-month initial lockup. Proposed transfers from restricted fund accounts must be reviewed for compliance with any "donor intent" or other restrictions before any approvals are granted.

The fund DeptID is designated for deposit must have a positive aggregate balance. No transfers into GIP will be approved in cases where deficits exist (or would be created by the transfer) in the corresponding fund DeptID GIP shall be limited to a maximum amount of reserve balances as determined from time to time by the CFO and the CIO. Endowment principal is not allowed in GIP.

Subsequent to appropriate approvals, withdrawals may be made at the end of any quarter with 45 days advance notification to OIB and Accounting Services. Investments may experience gains or losses in the principal balance due to changes in the pool's NAV during a participant's holding period. The sale price is based on the quarter ending NAV and will be credited to a participant's designated account. Requests for principal withdrawals must meet the pre-notification requirements and be approved by CFO and the CIO; such approval will not be unreasonably withheld. Approval may be denied in cases where the volume or relative size of the withdrawal requests may have unfavorable market impact on the overall GIP portfolio. In exigent circumstances, exceptions to this withdrawal policy will be reviewed by the CFO of the University.

GIP represents the financial assets held as long-term reserves by various operating units of the University. These long-term reserves are primarily used to fund capital or infrastructure expenditures not budgeted to be spent for three years or longer. The primary investment objective of GIP is to maximize total investment return while preserving capital balances until such time as the principal is required to fund the intended use.

• Contributing to or Withdrawing from the Group Income Pool

• Contributing to or Withdrawing from the Group Income Pool (GIP)

Subject	Contact	Phone	Fax/Email
Primary Contact	Stacy L Hebdon	612-624-5858	s-hebd@umn.edu
Policy or Accounting	Greg Schooler	612-625-2012	612-626-7271

Adjusted Investment Earnings/Loses (AIE)

Such AIE will be equal to the net change in NAV less a 1% administrative fee assessed quarterly in arrears to the period ending balances.

Dean or Equivalent Officer

The Dean of the department, department chair or Resource Responsibility Center Manager.

End of the Quarter

The last day in each month of September, December, March and June.

Group Income Pool (GIP)

A unified investment pool that may be used by University departments to invest long-term reserves.

Long-Term Reserves

Funds that are not budgeted to be spent for three or more years.

Net Asset Value (NAV)

The total value of the fund's portfolio less liabilities.

Office of Asset Management

Calculate Net Asset Value.

Chief Financial Officer

Approve contributions to and withdrawals from the GIP fund.

Chief Investment Officer

Approve contributions to and withdrawals from the GIP fund.

Accounting Services

Process contribution or withdrawal requests. Check for donor intent when withdrawals are made from restricted funds.

Dean/Equivalent Administrative Officer or Chancellor

Approve contributions to and withdrawals from the GIP fund.

• Rates: Participating in the Group Income Pool

There are no Frequently Asked Questions for this policy.

• Board of Regents Policy: Investment of Reserves

Amended

June 2008 - Policy completely revised to address the Enterprise Financial System rollout. Procedure also updated to address EFS rollout.

Amended

October 2007 - Office of Asset Management is now Office of Investments and Banking. Responsible Officer change to reflect this.

Amended

January 2007 - Coordinate campuses get Chancellor approval in order to participate in GIP.

Amended

December 2006 - Approval is now required from the CFO and CIO (rather than OIB) for deposits to or withdrawals from GIP. Individual units must have a positive fund area balance in order to participate in GIP. Coordinate campuses get approval at Chancellor level to participate in GIP. Policy Statement, Responsibilities, Rates and procedure were updated to reflect these changes. A new form to request approval for contributing to or withdrawing from GIP was added.

Amended

November 2006 - Revised the method of allocating earnings credit to departments as well as reducing the minimum initial deposit required from $50,000 to $25,000 and changing the initial lockup on reserves deposited from 24 months to 12 months.

Effective:

September 2005

To obtain a copy of a historical policy, e-mail the U Policy Librarian at policy@umn.edu or call 612-624-4372.