Financial Overview

Diligence and Prudence

The UNC Foundation’s goal is to prudently manage its endowment to achieve the best income result while respecting inherent risks present in the financial markets. A balanced portfolio is the best investment strategy over time, and UNC Foundation’s Investment Committee targets the asset allocation shown in the chart. Working with an investment advisor and staying informed on market performance, the committee reviews the allocation and portfolio performance, making adjustments if performance moves an asset class off target or presents other significant risks. The Foundation managed approximately 500 endowments during the fiscal year. Each of these funds is invested proportionately in a well-diversified pooled investment portfolio, valued at more than $90 million. The net earnings from the portfolio exceeded $8 million.

Asset Allocation FY12/13

Pooled Trust

The Foundation compares its investment performance to other like-sized institutional foundations, as well as to a custom benchmark for the whole fund and custom benchmarks for each asset class. The custom benchmark reflects how the overall markets performed with a similar investment allocation. Over ten years, the pooled investment portfolio has returned 7.0%, surpassing the custom benchmark of 6.9%.

Pooled Investment Portfolio Performancepooled trust

Investment Policy

The University of Northern Colorado Foundation, Inc. (Foundation) Board of Directors (Board) established this Investment Policy Statement (IPS) to provide objectives, guidelines and restrictions for the management of the Foundation’s investment portfolio. The investment program is defined in the IPS by:

  • Stating the Board’s attitudes, expectations, objectives and guidelines for the Investment Portfolio.
  • Setting forth an investment structure for managing the Investment Portfolio. This structure includes the use of various asset classes, investment management styles and asset allocation that are expected to provide prudent diversification and to maximize total investment return within prudent levels of risk over the long-term.
  • Providing guidelines for the Investment Portfolio that control the level of overall risk and liquidity in the portfolio, so that all Foundation assets are managed in accordance with stated objectives.
  • Encouraging effective communication between the Board, the Investment Committee, and the investment consultant and the money managers.
  • Establishing formal criteria to monitor, evaluate and compare the performance results achieved by the money managers on a regular basis.
  • Comply with all applicable fiduciary requirements that experienced investment professionals would utilize, and with all applicable laws, rules and regulations from various local, state and federal political entities.

This IPS has been formulated based upon consideration by the Board of the financial implications of a wide range of policies and describes the prudent investment process that the Board deems appropriate.

 

Investment Policy