PURDUE UNIVERSITY
OFFICE OF THE EXECUTIVE VICE PRESIDENT AND TREASURER
MEMORANDUM NO. A-28
(Superseded by A-28 dated October 6, 1986)
June 7, 1982
To: Deans, Directors and Heads of Schools, Divisions, Departments and Offices, and Regional Campus Chancellors and Chief Business Officers
Re: Current Yield Pool
Effective immediately, a "Current Yield Pool" is established for investment purposes within the University's Endowment Funds. With the approval of the Treasurer and the donor, gifts received after the effective date will be eligible to participate in this Pool. The primary objective of the new Pool is to provide maximum current income rather than capital gains, even at some risk of erosion of capital. Our present pool, which has a balanced portfolio, will continue as the investment vehicle for all other endowment funds. Participation in the new Current Yield Pool will be authorized under the following conditions:
- Donors must sign an irrevocable participation agreement specifying investment in the Current Yield Pool.
- Earnings of the Pool will be distributed on a semiannual basis to operating accounts, but with proper approval of the Treasurer may be reinvested in the Pool.
- Minimum account size for participation in the Pool will be $5, 000. Entry into the Pool will be effective as of the date of receipt of the gift and the donor's executed participation agreement.
- Capital investments in this Pool will be considered permanent. However, if conditions of the gift permit, limited withdrawals of capital from the Pool for application to other University purposes may be approved by the Treasurer for good and sufficient reasons based on priorities and needs of the University.
Ninety days' notice must be given and withdrawals will be at the current market value as of the date of withdrawal.
Additional information concerning the specific policies and procedures of the operation of this Pool may be obtained by contacting the Director of Investments (49-47535).
F. R. Ford
Executive Vice President
and Treasurer
CONSENT OF DONOR FOR INVESTMENT
OF GIFT OR GIFT PROCEEDS IN
PURDUE UNIVERSITY'S "CURRENT YIELD POOL"
I, the undersigned ___________________________________ having this day made a gift of
____ Cash in the amount of $__________________
____ Securities consisting of ___________________________________
______________________________________________________
____ Other assets consisting of __________________________________
______________________________________________________
to The Trustees of Purdue University, hereby give my irrevocable consent to the investment of the entire amount of such gift, or the proceeds thereof, in Purdue University's "Current Yield Pool". In giving such consent, I understand that the primary purpose of the "Current Yield Pool" is to maximize current income rather than to enhance or preserve principal, and that accordingly, the securities in which the assets of said "Pool" are and will be invested and reinvested, are and will be subject to risks of erosion and loss of principal values.
In witness whereof I have executed this Consent, this _______________ day of _______________________, ______ .
_______________________________________________
