1. Context

The Trinity Endowment Fund (‘the Fund’) comprises over 440 individual endowments, each of which represents a benefaction to the University. In general, they are permanent funds that provide financial support to specific University activities in perpetuity. Many have their own stipulations, as specified by the donor, about how and for what purpose they may be used.

2. Purpose

The primary investment objectives of the Trinity Endowment Fund are to generate a sustainable level of income and preserve the purchasing power of the assets held in the Fund after inflation, expenses and withdrawals.

3. Scope

Responsibility for decision-making on investment matters has been delegated by the Board to the University’s Investment Committee, which is a sub-committee of the Finance Committee. The Investment Committee (‘the Committee’) establishes and implements investment policy, appoints investment managers for the Fund’s assets and monitors investment performance against agreed benchmarks, making portfolio adjustments where necessary.

The Investment Policy Statement provides a framework for the Investment Committee to assist with future investment decisions.

4. Principles

The key drivers of the investment philosophy are:

• Generation of absolute real returns
• Investing for the long term
• Diversification
• Adherence to broad Environmental, Social and Governance (‘ESG’) principles
• An asset’s special relationship or value to the University (any such investments would be evaluated against other market alternatives)
• Ongoing management and review of asset allocation

The current income target is driven by the investment philosophy and changes to the income target should be informed by market benchmarks. The income target shall be reviewed and agreed annually by the Investment Committee.

The long-term nature of the Fund provides the capability to withstand higher levels of volatility of the capital value of its investments, as long as current expenditure can be met from investment income and occasional drawdowns from the Reserve Fund to smooth income flows if required.

5. Policy

Assets

• The Endowment Fund can be invested widely and should be diversified by asset class and security. Asset classes may include cash, equities, bonds, property, infrastructure assets, commodities and any other asset deemed to be suitable by the Committee. The Committee may agree to invest in individual or fund-based equity and fixed interest holdings and other funds to achieve the overall long-term Fund objectives.
• The Committee may use more than one investment manager; in which case a decision process must be put in place to deal with the addition of new investments.
• The University’s expenditure and the base currency of the investment portfolio is Euro. Investment within the portfolio may be made in non-Euro assets. Currency hedging is permitted in order to reduce the portfolio’s exposure to negative currency fluctuations against the Euro.
• Within the agreed asset allocation there may be temporary variations, due to market movements.
• The Committee shall keep the Fund asset allocation under review and will seek external professional advice where necessary. Annually the Committee will review the current asset allocation and agree any changes required.
• The Committee shall review the strategic ranges for each asset class annually and agree any changes required.

Approved Asset Allocation

The table below summarizes the target asset allocation approved by the Committee in March 2024 and is reviewed annually.

Asset Class	Target Asset %	Lowest Range %	Highest Range %	Range +/- %
Equity Portfolio	67.0%	62.0%	72.0%	5.0%
Investment Property Assets	12.1%	9.1%	15.1%	3.0%
Infrastructure Assets	11.3%	8.3%	14.3%	3.0%
Private Credit	4.0%	1.0%	7.0%	3.0%
Trade Finance	3.0%	0.0%	6.0%	3.0%
University Bridge Fund	1.0%	0.0%	2.0%	1.0%
Cash Deposits / Other	1.6%	n/a	n/a	n/a

Liquidity Requirements

The Fund aims to balance the needs of both current and future beneficiaries and, as such, aims to set a sustainable income target, whilst ensuring that capital is expected to grow in line with inflation over the long term.

Time Horizon

The Fund can adopt a long-term time horizon as it is expected to exist in perpetuity.

Risk

• The key risk is that the Fund will not generate sufficient income in any given year. Therefore, typical risk metrics of a portfolio (e.g., Sharpe ratio) are less relevant for the Fund. In a low-interest rate environment, liquidity risk (difficult to measure) is where the focus lies. Given its long-term investment horizon the Fund can tolerate capital market volatility.
• An appropriate mix of liquid and illiquid assets as determined by the Investment Committee shall be held.
• A risk review of the portfolio should be carried out on an annual basis.

Sustainable Investment Policy

• The Fund is committed to investing on a responsible and sustainable basis to ensure the resilience of the portfolio in light of threats to sustainability. The Fund adheres to broad Environmental Social and Corporate Governance (‘ESG’) principles and solely engages asset managers who comply with the United Nations Principles of Responsible Investing requirements.
• The Investment Committee expects its Investment Managers to ensure that all underlying active managers integrate the consideration of ESG-related risks into their investment process and to regularly challenge underlying managers to evidence their approach.
• Managers are expected to improve their sustainability credentials and investment performance reporting should include ESG integration metrics.
• The Fund will have regard to the University’s Sustainability Policy, noting that Sustainability is a key pillar of the University’s Strategic Plan ‘Community and Connection 2020 – 2025’ and that the Fund’s disbursements support a wide range of activities across the University.
• The Investment Committee will have regard to, and carefully consider, any recommendations arising from the University’s Taskforce (expected to be established in AY2025).

Management, Reporting, Monitoring

• The Committee is responsible for the selection of investment managers and assets/vehicles to implement the agreed asset allocation strategy.
• The Committee meets on a quarterly basis, and if required, a more regular Investment Committee Sub-Group meeting may be convened to deal with any specific issues arising.
• The Chair of the Investment Committee will present an Annual Report to the Investment Committee and Finance Committee detailing the key areas of work, including annual review of asset allocation, undertaken by the Investment Committee in the relevant year.
• In line with the Committee’s Terms of Reference, an annual self-evaluation process will be completed and the results presented to a meeting of the Committee.
• Every 3 years, the Committee should undertake a full review of the Endowment Fund’s investments including:
  • Analysis of return, risk and asset allocation
  • Monitoring of performance against agreed market indices and the University’s overall investment objectives of income generation and capital preservation
  • A review on investment manager charges incurred and level of service provided to ensure value for money, compared to agreed rates
• Minutes of all Committee meetings will be circulated to Finance Committee for noting along with a summary of the Fund’s quarterly performance.

6. Responsibility and Implementation

Responsibility for decision-making on investment matters has been delegated by the Board to the University’s Investment Committee, which is a sub-committee of the Finance Committee. The Investment Committee establishes and implements investment policy, appoints investment managers for the Fund’s assets and monitors investment performance against agreed benchmarks, making portfolio adjustments where necessary.

The Chief Financial Officer shall act as Secretary to the Investment Committee and oversee the application of this Investment Policy Statement.

The Investment Policy Statement will be reviewed every 3 years to ensure that it continues to be appropriate for the management of the University’s Endowment Fund.

7. Related Documents

A Sustainable Investment Policy has been developed to ensure that investments match the priorities and values of the University and it is intended to support Trinity’s aims to invest in a better global future by delivering strong returns through involvement with organisations that demonstrate policies and practices in line with the University’s mission and values as expressed in its strategy document available here.

8. Document/Version Control for New Policies

Approved by: Investment Committee
Date policy approved: 21 March 2023, 10 September 2024 (Updated)
Approved by: Finance Committee
Date policy approved: 8 February 2024, 14 October 2024 (Updated)
Approved by: Board
Date policy approved: 4 December 2024
Date of next review: AY27/28
Officer responsible for review: Chief Financial Officer

1. Context

Universities play a key role in sustainability leadership, conducting the research that generates knowledge, educating the next generation of decision-makers, and acting as engines of societal transformation. Trinity plays a key role in this area and has the expertise and responsibility to promote societally just, ecologically sound, and economically viable development. This means that day-to-day operations, educational programmes, research and investment activities should all be conducted in a way that is sustainable, that addresses biodiversity and climate crises, and promotes health and well-being.

Trinity is committed to becoming a climate smart and nature positive university, which includes a commitment to reducing greenhouse gas emissions and energy use to achieve sectoral Climate Action targets by 2030 and adapting our activity for a climate-changed future.

2. Purpose

This commitment to delivering a climate smart and nature positive Trinity has environmental sustainability as a central part of our mission. Trinity, via the Endowment Fund, has substantial opportunities to invest for a sustainable future that will reduce our negative climate and biodiversity impacts, improve ecosystem and human health and wellbeing, and take us further towards the goal of sustainable development.

This Sustainable Investment Policy has been developed to ensure that investments match the priorities and values of the University and is intended to support our aims to invest in a better global future by delivering strong returns through involvement with organisations which demonstrate policies and practices in line with the University’s mission and values as expressed in its strategy document available here.

3. Scope

This Policy applies to the work of the Investment Committee in making and managing investments (of the Trinity Endowment Fund) on the University’s behalf across the following headings:

• Investments
• Sustainable Investment
• Appointment of Fund Managers
• Representation Process

4. Principles

Investments

• The primary purpose of the investment of endowment funds is to optimise returns to support the generation of sufficient revenue to meet the specific purposes for which the funding was given to the University, including innovative research, support of academic chairs, student prizes and initiatives to support the objectives of the University’s Strategic Plan.
• The Endowment Fund is committed to investing on a responsible and sustainable basis to ensure the resilience of the portfolio in light of threats to sustainability. The Fund adheres to broad Environmental Social and Corporate Governance (‘ESG’) principles which are considered in all its investment decisions and solely engages asset managers who are signatories of the United Nations Principles of Responsible Investing (‘UNPRI’) initiative and comply with the UNPRI requirements, including annual publication of their activities and progress towards implementing the principles.

5. Policy

Investments

The University will not knowingly invest in companies whose activities do not align with the UN Sustainable Development Goals, particularly those that the University identifies with, including goals around climate action and life on land and in the water, and addressing poverty and hunger, education, gender equality, peace and justice and sustainable cities.

The Endowment Fund will support the University’s advancement of its sustainability initiatives, including progressing an application for Trinity to become an UNPRI signatory; consistent with the requirement for our asset managers to be UNPRI signatories.

The Endowment Fund will actively explore opportunities for investments to accelerate the transition through investment in renewable energy, biodiversity restoration, technology supporting sustainable development or other impact investments whilst continuing to deliver strong returns to provide critical support and funding for a wide variety of activities across the University.

The Investment Committee will have regard to, and carefully consider, any recommendations arising from the University’s Taskforce (expected to be established in AY2025).

Sustainable Investment

The University has committed to sustainable investments in the management of the Endowment Fund’s equity portfolio and ensures restrictions are applied to exclude direct holdings in companies in the following sectors:

• Fossil fuels
• Tobacco
• Armaments

Divestment from investment in Israeli companies that have activities in the Occupied Palestinian Territories and appear on the UN Blacklist was completed in June 2024.

Driven by a proactive Investment Committee and engagement from key stakeholders, the Trinity Endowment Fund has taken a market-leading approach by transitioning its equity holdings to bespoke Climate Focused and Low Carbon equity funds. These newly developed proprietary Irish Life Investment Managers (‘ILIM’) funds materially reduce the portfolio’s carbon footprint and enhance its sustainability profile. They are one of the most environmentally sustainable funds in the Irish market and provide enhanced reduction in carbon intensity, carbon risk rating and severe ESG exposure along with an increased allocation to carbon solutions and contain no oil and gas production or energy generation companies.

The equity portfolios aim to deliver broad equity market exposures and market returns with increased environmentally sustainable characteristics by embedding carbon neutrality in the investment process through minimising fossil fuel exposure and increasing investment in the sustainable economy. The portfolios explicitly exclude companies directly involved in the weapons industry along with ILIM’s firmwide exclusions on tobacco, controversial weapons and UN Global Compact violators which are also applied.

The Endowment Fund’s infrastructure investments include renewable energy assets (solar and wind) and providers of treatment and disposal of specialised waste.

The Endowment Fund is committed to a continuous monitoring and stewardship approach to its investments whereby investment managers are expected to regularly report on ESG issues, engagement and voting activity (where applicable).

Fund Managers

The Investment Committee expects its Investment Managers to ensure that all underlying active managers integrate the consideration of ESG-related risks into their investment process and to regularly challenge underlying managers to evidence their approach.

Investment performance reporting should include ESG integration metrics and managers report on a quarterly basis and present annually to the Investment Committee on investment performance including ESG credentials and improvements made since the prior reporting period.

All third-party fund managers are required to be signatories of the United Nations Principles of Responsibility Investment initiative and must disclose publicly their governance and sustainability frameworks.

Representation Process

Staff and students are also given an opportunity to engage with this Policy via their staff and student representatives at appropriate University Committees.

The Environment and Sustainability Committee, a newly established Principal Committee of the Board, is responsible for advising Board on all matters of policy and oversight relating to environmental sustainability, biodiversity and climate action in College. It has a diverse membership from across the University including senior leadership across all areas of College and student representatives.

6. Responsibility and Implementation

The Chief Financial Officer, as Secretary to the Investment Committee, is responsible for ensuring the investments made on the University’s behalf align with this policy.

7. Related Documents

The Investment Committee makes investments on the University’s behalf in line with the agreed ‘Investment Policy Statement’, approved by Investment Committee and Finance Committee.

8. Document/Version Control for New Policies

Approved by: Investment Committee

Date policy approved: 13 June 2023, 10 September 2024 (Updated)

Approved by: Finance Committee

Date policy approved: 8 February 2024, 14 October 2024 (Updated)

Approved by: Board

Date policy approved: 4 December 2024

Date of next review: AY27/28

Officer responsible for review: Chief Financial Officer