The capital of a trust fund, (both permanent and spendable) is invested and then the income generated from these investments is used to provide the intended benefits of the trust.
Interest from Money on Deposit
As part of the month end procedures, the Finance Division will credit the interest due to any trust fund accounts holding money on deposit. This credit will appear in the trust fund account against the transaction code NBAA, and will be available to spend or reinvest.
The interest rate varies from month to month as interest rates fluctuate, based on market interest rates. However, trust funds do receive interest at the higher rate within the University.
Details of the current interest rates are available from the Finance Division web pages.
CUEF Distributions
Currently this depends on the number of CUEF units that are held and is calculated by multiplying the number of units by the distribution rate. It is credited to departmental accounts on a monthly basis on transaction code NAAA.
The distribution rate varies year to year and the amount is calculated centrally using a formula which reflects the CUEF's total return policy.
The Treasury & Investments Section will send out a bulletin in September each year which publishes the amount of the annual distribution.
Details of the current distribution are available from the Finance Division web pages.
CUEF Unit Purchases and Sales
Spendable capital units can be bought and/or sold as required at the end of the following quarters:
- September
- December
- March
- June
Requests must be received by the Trust Funds Assistant at least two weeks before the last working day of the month.
The Treasury & Investments Section will send out a bulletin in September each year to specify the deadline dates for requests. Funds must be available at the date of instruction rather than by the trade date.
The timetable for instruction and trade dates is also available from the Finance Division web pages.