Published on Finance Division (https://www.finance.admin.cam.ac.uk)

Home > Policy & Procedures > Financial Procedures > Chapter 13 - Trust funds > Trust Fund Set Up > Permanent Capital

Permanent Capital

Most trust funds will have some permanent capital - the original endowment that cannot be spent by the Managers. A number of funds do not have permanent capital as, under the terms of the bequest, both the original donation and any income generated, may be spent.

The permanent capital of a trust fund is invested in the Cambridge University Endowment Fund (CUEF) and is treated as a long-term investment, i.e. the units held cannot be sold. The CUEF income generated from the permanent capital is credited monthly to the spendable part of a Trust Fund (cost centre ZZYB) under the transaction code NAAA.


Source URL:https://www.finance.admin.cam.ac.uk/policy-and-procedures/financial-procedures/chapter-13-trust-funds/trust-fund-set/permanent-capital