Investment Strategy

The UNT Foundation portfolio is designed for long-term, inflation-adjusted growth while managing risk. The Board of Directors upholds fiduciary responsibility in line with legal and industry standards. Following the Texas Uniform Prudent Management of Institutional Funds Act (TUPMIFA), the Foundation applies prudent investment principles - diversification, rebalancing, and research - to optimize returns.

A robust endowment strengthens UNT by funding scholarships, faculty, research, and other programs. The Foundation ensures sustainable financial support by investing donated funds according to Board policies, preserving purchasing power for future generations. The Investment Committee, composed of Board members with financial expertise, oversees investments strategy, asset allocation, and spending policies, with input from an external consultant.

Monitoring & Rebalancing

The Investment Committee reviews portfolio performance quarterly, considering economic trends and market outlooks. Asset allocation adjustments occur as needed, with alternative investments taking longer to reach targets due to liquidity constraints.

Investment Objective & Strategy

The Foundation seeks strong long-term returns to maintain endowment purchasing power, support UNT’s financial stability, and cover foundation expenses. Investments emphasize risk-adjusted returns, but with the understanding that endowments have infinite lives.

Risk Management

Investment risk is managed through asset allocation, diversification, valuation analysis, and ongoing due diligence. Market volatility is acknowledged, but disciplined strategies mitigate risk.

Core Investment Philosophy

  • Perpetual endowments enable long-term investment.

  • Equities dominate due to historically higher returns and inflation resilience.

  • Diversification improves risk-adjusted returns.

Asset Allocation

The portfolio targets 75% Growth Assets and 25% Income-Oriented Assets, with tactical flexibility between 65-85% and 15-35%, respectively. The Investment Committee rebalances the portfolio within these ranges, requiring Board approval for deviations.

Growth Assets, largely equities, include passive and actively managed funds diversified across sectors and geographies. Real estate and infrastructure investments hedge against inflation. Income-Oriented Assets provide stability through fixed income, alternatives, and cash holdings.

Despite equity weighting, diversified structuring minimizes volatility compared to broader markets.

Benchmark

A composite benchmark - including the Dow Jones U.S. Total Stock Market Index, MSCI All-Country World ex U.S. Index, Barclays Capital Aggregate Bond Index, and S&P U.S. Treasury Bill Index - measures portfolio effectiveness.