When an endowment payout is made, the per share value is decremented accordingly in the Merged Pool (MP); all share types are equally affected. Both pure and quasi share types in a true endowment fund will be evaluated separately for payout resources, and payout will be funded proportionately. This process impacts a fund's payout only when Pure B Limited shares in a fund do not have adequate payout resources (appreciation), as quasi resources only fund the quasi portion of payout (i.e., payout resources and funding are evaluated and made separately by share type).

To mitigate the impact of any undistributed payout for any given fiscal year due to evaluating share types separately, fund holders may choose to decapitalize quasi shares from the same fund to make up for any missed payout. The request to decapitalize quasi shares from a true endowment must be:

  • A minimum of $5,000 unless the remainder of a fund's quasi balance is being withdrawn
  • No greater than the amount required to achieve full payout for the fund for the year 
  • Received by Fund Accounting by July 31 of the given fiscal year

To learn more, refer to Administrative Guide Policy 3.1.2: University Funds.

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