Appendix: Endowment Participant Position Page
The current value of an endowment is referred to as an endowment’s “market value.”
An endowment’s market value is the product of the number of shares held in the endowment
and the per-share value:
Market Value = Number of Shares x Price per Share
An endowment’s market value may be viewed in the financial system at any time on the
Endowment Participant Positions page. The Endowment Participant Positions page shows a
history of endowment participant events (e.g., deposits, withdrawals, income distributions,
market value updates and fees) and the impact of those events on the endowment’s market
value and number of shares. For additional information on interpreting the events impacting an
endowment’s market value, refer to Administrative Policy: Selecting Investment Options for
University Funds, Procedure – Interpreting an Endowment’s Market Position. (programmer – link
to procedure)
The impact of deposits and withdrawals to an endowment’s market value are available as soon
as the deposit or withdrawal are approved (in the system) by Treasury Accounting. However,
updates for fee assessments, income distributions, and market value updates may not be
available in the system for up to several weeks following the event.
To view an endowment’s market value, navigate to the Endowment Participant Position page in
the financial system:
Cash Management > Investment Pools > Participant Position
<< Insert Position01, pictured below>>
The page has two primary sections: Search Criteria and Position History. After populating the
search criteria and clicking <Search>, endowment transactions matching the search criteria will
appear on the bottom of the page.
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It is critical to input Participant ID to narrow the search to a particular endowment. Entering the
Sequence number further narrows the search to either the initial endowment (such as a True) or
the associated Quasi-restricted or Quasi-unrestricted endowment.
Input parameters for the search criteria are as follows:
Field Name
Business Unit
Field Description
Enter UMN01
Pool ID
Pool in which the endowment is invested. Select either:
ECEF - Consolidated Endowment Fund
EGIP - Group Income Pool
Participant ID
Enter the endowment ID. Note that True endowments and
associated Quasi-restricted endowments have the same
Participant ID.
Sequence Number
Enter the sequence number of the endowment. True
endowments will always have a sequence number of “1”.
The first associated Quasi-restricted endowment linked to
the True will have a sequence number of “2”. The next
would have a sequence number of “3,” and so on. Because
linked endowments share the same Participant ID, the
sequence number is necessary to identify the correct
endowment.
If this field is left blank, transactions for both the initial
endowment and the associated Quasi-restricted or Quasiunrestricted endowment will appear. This is useful if
looking for the total market value of an endowment (e.g.,
the value of a True and it’s Quasi-restricted endowment.)
From Date / To Date
Enter the date range of events (deposits, withdrawals,
income distributions, market value updates, or fees) you
would like to see.
If the Date fields are left blank, all events will be displayed
beginning with most recent.
Interpret the displayed information. In the example, the information entered under the Search
Criteria section resulted in the following page being displayed. Here, the Sequence number field
was left blank to display the market values of all related endowments. The Date fields were also
left blank to display all events, with the most recent shown first.
Generally, each line represents a specific event (deposit, withdrawal, market value update,
income distribution or fees). The default display lists the events in descending order beginning
with the most recent event.
<< Insert Position02, pictured below >>
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Column definitions / interpretations from left to right are as follows:
a)
Participant ID - the participant ID of the
endowment entered in the Search Criteria section.
b)
Sequence Number – the Sequence number of the
endowment. If sequence number was left blank in the Search Criteria section, market
value information for all sequence numbers associated with a Participant ID will be
displayed.
In the example shown above, endowment P000001001 only has a one Sequence number.
c)
Account Type – the type of operating account
impacted by the event. This will be “Deposit” for deposits, withdrawals, market value
updates and fees. Only income distributions will have “Income” listed as the Account
Type.
d)
Date – the effective date of the event. For deposits
and withdrawals, this would be the date the transaction was approved. This is not the
same as the participation date for income distribution purposes. See Administrative
Policy: Selecting Investment Options for University Funds, Appendix – CEF and GIP
Income Distribution and Rates. (programmer – link to appendix). The effective date for
Market Value updates are the last day of each month. It typically takes several weeks
after month-end close to receive the market value updates and upload them into the
financial system.
e)
Market Value – the market value of the
endowment following the event. For example, the market value of the endowment after
a deposit has been made, or the market value of an endowment following the monthly
market value update.
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In the example shown above, the market value of the endowment as of the 9/30/08
event (market value update) was $2,562,605.22.
If an endowment had multiple sequence numbers, one would need to add the most
recent market values for each of the sequence numbers to obtain the total market
value.
f)
Change in Market Value – The increase or decrease
in market value of the endowment as a result of the event.
In the example, for the event dated 09-30-2008, there was a decrease in the
endowment’s value of $128,343.10
Book Value – In the system, this is calculated as the
g)
previous market value.
<< insert Position03, pictured below>>
h)
Historic Book Value – The sum of all deposits made
to an endowment less any withdrawals. Because withdrawals are not permitted from a
True endowment, this column will only display the sum of all deposits made to the True.
The market value of a True endowment should never fall below the Historic Book Value.
Income distributions will be reduced, or even suspended, if the result of an income
distribution would take the market value below the Historic Book Value.
For Quasi-restricted or Quasi-unrestricted endowments, this column will display the net
of deposits and withdrawals.
Income distributions, nor income earned or lost (as part of the market value update),
nor fees will impact the Historic Book Value.
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In the example pictured above, the Historic Book Value of the endowment is $880,000. In
the time period shown, there has been no additional deposit or withdrawal activity.
i)
Number of Shares – The new number of shares held
by the endowment as a result of the event. Deposits and withdrawals, or buying or
selling shares, respectively, are the only events which impact Number of Shares for nonPUF endowments.
In the example shown above, the number of shares have remained unchanged at 33,
703.190. The current price per share can be computed by dividing the total Market Value
by the number of shares: $2,562,605.22 ÷ 33,703.190 = $76.0345. Market Value
updates do not change the number of shares, but they do change the price per share.
PUF endowments may be granted additional shares to offset the reduction in share
value as the result of an annual fee assessment. For more information, see See
Administrative Policy: Selecting Investment Options for University Funds, Appendix –
Administrative Fees. (programmer – link to appendix)
j)
Mkt Val/Income - Clicking on the
icon will
result in the Position History page being displayed. The Position History indicates the
type of event corresponding to the line. In general, each line corresponds to an event.
When two events occur on the same day, the net effect of the events is shown on one
line. The Position History page will break out the events.
In the example below, we can see that the 09-30-2008 event was a market value update.
<< insert Positon05.png , pictured below>>
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