To: Deans, Directors, Department Chairs
University Business Managers
From: Kevin R. Seitz, Interim Vice Chancellor for Finance and Administration
Date: November 8, 2013
Since 2009, the general distribution rate on money market deposits has been set on a quarterly basis at two-thirds of the rate of return earned on deposits with the Department of the State Treasurer. For Special Fund (athletic funds and agency funds) and Endowment Fund accounts with balances of less than $1 million, the distribution rate on money market deposits has been the 90-day US Treasury Bill plus 0.25% (For more details on the manner in which the distribution rate is established, please see Finance Division Policy 403 pertaining to “Short-Term Investments.”).
Given the safety and accessibility of these deposits to the campus community, and considering that the maximum weighted average maturity for an external money market portfolio is now 60 days, the University will begin to set the distribution rate to match the 90-day US Treasury Bill on a quarterly basis for all participating accounts beginning with the March 2014 distribution. This change will represent a more appropriate alignment among risk, accessibility (of funds), and corresponding rate of return.
If you have any questions, please contact Brian Smith, Interim Associate Vice Chancellor for Finance, at (919) 843-6043.
Copy: Bart Brunk, VP and Managing Director, UNC Management Company
James W. Dean, Jr., Executive Vice Chancellor and Provost
Jon King, President and CEO, UNC Management Company
Dennis Press, Assistant Vice Chancellor and University Controller
Brian Smith, Interim Associate Vice Chancellor for Finance