Investment Policy

The University of Maryland College Park Foundation, Inc. (UMCPF) has developed a multifaceted investment strategy to balance short- and medium-term capital needs with a longer-term emphasis on sustainability and growth.

Along with peer institutions in the University System of Maryland (USM), UMCPF contracts with the USM Foundation, Inc. for investment services. The UMCPF Board of Trustees appoints members to represent the interests of the College Park campus on the USM Foundation’s investment committee. This representation is not less than the percentage of UMCPF assets to total assets under management by the USM Foundation.

In addition, UMCPF recently contracted with Mercer Advisory, a globally recognized investment consulting firm that has served as a trusted advisor to institutional investors, foundations and corporations for more than 80 years. Widely regarded for its fiduciary responsibility, institutional rigor and research-driven approach to investment consulting, Mercer provides a dedicated team to UMCPF, employing a diversified and prudent approach customized to our unique strategic needs.

Generally speaking, legacy endowed funds are held at the USM Foundation; because it is imperative to keep all gifts to a single fund “united” under one manager, pledge payments and new gifts to funds held at the USM Foundation are also invested by the USM Foundation. UMCPF’s contracts with Mercer and the USM Foundation stipulate which funds are housed at each institution. New funds, including many established in the Forward campaign, will be held at and managed by Mercer Advisory. One exception to note is that all funds established under the auspices of the Maryland Promise Scholarship Program will be held at the USM Foundation.

The USM Foundation and Mercer have each assembled highly diversified endowment portfolios, managed by dedicated committees and professional investors. Both determine a mix of investment strategies needed to preserve and enhance the endowment corpus while providing funds needed to support University of Maryland programs.

As has been the case for over 25 years, UMCPF manages endowment funds under guidelines established by its Board of Trustees. These guidelines allow UMCPF, the USM Foundation and now Mercer Advisors to assess reasonable administrative fees. These fees support operational expenses for both the UMCPF and USM Foundation, investment services contracted through Mercer Advisors, as well as activities that support the growth of the endowment. Fees are annually benchmarked with peer institutions.

Find additional information regarding the investment of UMCP Foundation endowment funds on the USMF website.

The information on this website is not intended as legal or tax advice. For such advice, please consult an attorney or tax advisor. Figures cited in any examples are for illustrative purposes only. References to tax rates are subject to change.