Financial Overview

Diligence and Prudence

asset allocationThe UNC Foundation’s goal is to prudently manage its endowment to produce the greatest possible income stream for the University. Using the time-tested theory that a balanced portfolio is the best investment strategy over time, the UNC Foundation’s investment committee used the target asset allocation shown in the chart. Working with an investment advisor and staying informed on market performance, the committee reviews the target allocation and portfolio performance quarterly, making adjustments to re-balance if an asset class performance varies from target by 3 percent or more. The Foundation managed more than 460 endowments and quasi-endowments in FY2011-12. Each of these funds is invested proportionately in a well-diversified pooled trust, valued at just more than $84.6 million. Our earnings were slightly negative this year because of the Fall 2011 financial downturn.

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. Since inception, the pooled trust has returned 7.8 percent, surpassing both the custom benchmark of 6.7 percent and effectively meeting its custom target of 7.9 percent. The pooled trust has regularly met or exceeded its benchmarks and targets.

pooled trust