1
Endowment Board
University of North Carolina
Wilmington
November 20, 2014
2
Endowment Board
University of North Carolina Wilmington
Thursday, November 20, 2014 at 3:00 pm
Burney Center, Ballroom A
Agenda
Welcome
Mr. Michael Shivar
Approve Minutes of April 3, 2014
Mr. Michael Shivar
Review of FY 2015 Q1 Endowment Reports
Ms. Roberta LaSure
Update: Amendments to Operating Procedures of UNCIF
Ms. Roberta LaSure
Update on 2015-16 Spending Distributions
Ms. Roberta LaSure
Investment Committee members
Mr. Eddie Stuart/Dr. Rick Whitfield
Closed Session
Mr. Michael Shivar
Open Session – Closed Session Recommendations
**
Mr. Michael Shivar
Conflict of Interest Disclosure forms
Dr. Rick Whitfield
Adjournment
Mr. Michael Shivar
** Action Items
3
Endowment Reports
FY 2015 through September 30, 2014
4
Endowment Investment Portfolio at September 30, 2014
BEGINNING MARKET VALUE
$
Total Endowment Funds
University Endowments
Fiscal Qtr and Year To-Date
7/1/14 -9/30/14
Fiscal Qtr and Year To-Date
7/1/14 -9/30/14
87,911,176
$
83,729,118
Foundation Endowments **
Fiscal Year To-Date
7/1/14 -9/30/14
$
4,182,059
RECEIPTS
Contributions
TOTAL RECEIPTS
247,297
$
247,297
244,625
$
244,625
2,672
$
2,672
EARNINGS
Interest and Dividends
108,786
99,964
8,822
Realized Gains /Losses
1,514,342
1,435,549
78,793
(1,194,988)
(1,173,428)
(21,560)
Unrealized Gains /Losses
TOTAL EARNINGS
$
428,140
$
362,085
$
66,055
DISBURSEMENTS
Annual endowment distributions
Annual administrative fees
Investment Fund Fees
Donor repurposing
(2,916,688)
(2,782,359)
(134,329)
(740,601)
(718,951)
(21,650)
(54,733)
(51,910)
(2,823)
(3,703)
(3,703)
TOTAL DISBURSEMENTS
$
(3,712,022)
$
(3,553,220)
$
(158,802)
ENDING MARKET VALUE
$
84,874,592
$
80,782,608
$
4,091,984
**
Includes $1,463,267 not managed by Board but by students as part of student managed investment portfolio
5
University’s Portfolio Performance through September 30, 2014
Portfolio vs. Benchmarks
UNCW Endowment Portfolio
CPI + 4.5% (spend rate)
CPI +5.75% (spend rate + admin fee)
Annualized Net Returns @ September 30, 2014
Return since
Date
1 YR
3 YR
5 YR
10 YR
inception
of inception
11.4%
12.4%
9.6%
8.6%
7.7% 07/01/87
6.2%
6.1%
6.5%
6.8%
7.3%
7.5%
n/a
n/a
n/a
8.5%
6
Portfolio Asset Allocations at September 30, 2014
7
UPDATE
Endowment Spending Distributions
FY 2015-16 at 4.5% policy spend rate
8
Endowment Distributions 2014-2016
* 2015-16 @ 4.5% Policy Spend Rate
# Endow.
University Endowments
339
Foundation Endowments
8
Distribution $
$
$
2014-15 @ 4.5% Policy Spend Rate
# Endow.
3,112,161
327
150,610
8
3,262,771
Distribution $
$
$
2013-14 @ 4.5% Policy Spend Rate
# Endow.
2,782,359
295
125,799
6
2,908,158
-
insufficient accumulated earnings
-
not fully funded by donors
41
1
1
65
* 14.6% net investment return for FY 2013-14 supports 4.5% spending policy rate for 2015-16
-
$
22
61
2,207,145
102,754
$
Endowments Not Distributing Earnings
underwater
Distribution $
2,309,899
9
Endowment Spending by Purpose; 2009-2016
10
CLOSED SESSION
11
OPEN SESSION
12
Endowment Board
University of North Carolina Wilmington
Thursday, November 20, 2014 at 3:00 pm
Burney Center, Ballroom A
Agenda
Welcome
Mr. Michael Shivar
Approve Minutes of April 3, 2014
Mr. Michael Shivar
Review of FY Q1 of 2015 Endowment Activity & Performance
Ms. Roberta LaSure
Update: Amendments to Operating Procedures of UNCIF
Ms. Roberta LaSure
Update on 2015-16 Endowment Spending Distributions
Ms. Roberta LaSure
Investment Committee members
Mr. Eddie Stuart/Dr. Rick Whitfield
Closed Session
Mr. Michael Shivar
Open Session – Closed Session Recommendations **
Mr. Michael Shivar
Conflict of Interest Disclosure forms
Dr. Rick Whitfield
Adjournment
Mr. Michael Shivar
** Action Items
13
Action Items
from Closed Session
• Subject to and consistent with recommendations
from the chancellor to, and direction from, the
UNCW Board of Trustees, approve the items and
recommendations discussed in Closed Session.
14
Endowment Board
University of North Carolina Wilmington
Thursday, November 20, 2014 at 3:00 pm
Burney Center, Ballroom A
Agenda
Welcome
Mr. Michael Shivar
Approve Minutes of April 3, 2014
Mr. Michael Shivar
Review of FY Q1 of 2015 Endowment Activity & Performance
Ms. Roberta LaSure
Update: Amendments to Operating Procedures of UNCIF
Ms. Roberta LaSure
Update on 2015-16 Endowment Spending Distributions
Ms. Roberta LaSure
Investment Committee members
Mr. Eddie Stuart/Dr. Rick Whitfield
Closed Session
Mr. Michael Shivar
Open Session – Closed Session Recommendations
**
Mr. Michael Shivar
Conflict of Interest Disclosure forms
Dr. Rick Whitfield
Adjournment
Mr. Michael Shivar
** Action Items