carolinarsquos endowmentFor Fiscal Year Ending June 30 2015

OFFICE OF unIvErsIty dEvElOpmEnt

What is an endoWment

Endowments are funds invested to provide a permanent and predictable source of support for the University and its mission of teaching research and public service Endowments at Carolina may be restricted or unre-stricted Restricted endowments can support students faculty programs general operations and other initiatives Unrestricted endowments support critical initiatives across the campus and within schools and the flexibility to respond to a wide range of needs

Who manages Carolinarsquos endoWment

The UNC Management Company Inc manages the Universityrsquos endow-ment UNC Management Companyrsquos mission is to provide superior profes-sional investment services to the University Investment management is overseen by a Board of Directors many of whom are professional investors and Carolina alumni The fund is well diversified and fund managers recom-mended by UNC Management Company Inc are approved by the board

What is the differenCe betWeen University and foUndation endoWments

The UNC Management Company Inc serves as the investment man-ager for numerous higher education nonprofit organizations within the UNC system including UNC-Chapel Hill UNC Investment Fund LLC represents all of the endowment funds invested by the 27 participating members across the UNC system including UNC-Chapel Hill

givinguncedu

Commonly Used terms

Fiscal Year The Universityrsquos fiscal year begins on July 1 and ends on June 30 annually

Book Value Includes all gifts to an endowment fund transfers from other funds and withdrawals and income distributions that have been reinvested into the fund Reinvested income is not part of donor principal but is consid-ered part of the overall Book Value Book Value is not directly affected by changes in the market

Market Value The Market Value at the end of the fiscal year includes the beginning Market Value on July 1 plus additions minus withdrawals minus payout plus or minus investment performance Ending Market Value is the fundrsquos share of Carolinarsquos total endowment market value at the end of the fiscal year after crediting investment performance for the year and after deducting distribution and fees

Additions Total net of additions and withdrawals dur-ing the fiscal year This includes gifts made to the fund during the fiscal year and any in-come reinvested into the fund This amount is included in Book Value

Participating members which include UNC-Chapel Hill and its affili-ated foundations are each a separate legal entity Each has its own federal tax ID number and endowment invested on its behalf by UNC Man-agement NC General Statute 116-36(j) specifies that all gifts to the University or an affiliated foundation are considered to be a part of the University of North Carolina at Chapel Hill Endowment Fund Under this legislation endowment gifts must be specifically designated by the donor to an affiliated foundation for the gift to reside there

UNC-Chapel Hill and its 26 affiliated foundations and fund members each follow the same investment and spending policies

What is the valUe of Carolinarsquos endoWment

The University of North Carolina at Chapel Hill Foundation Investment Fund (ldquoCHIFrdquo) represents the portion of the UNC Investment Fund that is invested on behalf of UNC-Chapel Hill and its affiliated foundations and associations The value of all endowment funds supporting Carolina totaled $288 billion at June 30 2015

What is the spending rate and investment retUrn

Each year the CHIF Board of Directors authorizes the spending rate for the annual endowment distribution The boardrsquos primary objective is to preserve the purchasing power of endowment funds while paying out at least 5 percent of the market value over the long term This constant-growth spending approach provides income for spending today and helps assure funds will be available in the future regardless of the financial market in a given year

As of June 30 2015 the CHIF Board of Directors approved a distribu-tion that equates to 49 percent of the market value of the fund During this same period $1345 million was distributed from CHIF to support endowed programs at Carolina

OFFICE OF unIvErsIty dEvElOpmEnt208 W franklin street Chapel hill nC 27516mailing address po box 309 Chapel hill nC 27514Office 9199622336

givinguncedu

The annual report for the UNC-Chapel Hill Foundation Investment Fund is available online at uncmcuncedu and print copies are available from

The UNC Management Company1400 Environ WayChapel Hill NC 27517Phone 9194421599

$1345 million

$288 billionendoWment total

assets amoUnt

spending available in fy 2016

fy 2015 annUal distribUtion

49

Fy 2015 By tHE numBErs

93annUal retUrn

Participating members which include UNC-Chapel Hill and its affili-ated foundations are each a separate legal entity Each has its own federal tax ID number and endowment invested on its behalf by UNC Man-agement NC General Statute 116-36(j) specifies that all gifts to the University or an affiliated foundation are considered to be a part of the University of North Carolina at Chapel Hill Endowment Fund Under this legislation endowment gifts must be specifically designated by the donor to an affiliated foundation for the gift to reside there

UNC-Chapel Hill and its 26 affiliated foundations and fund members each follow the same investment and spending policies

What is the valUe of Carolinarsquos endoWment

The University of North Carolina at Chapel Hill Foundation Investment Fund (ldquoCHIFrdquo) represents the portion of the UNC Investment Fund that is invested on behalf of UNC-Chapel Hill and its affiliated foundations and associations The value of all endowment funds supporting Carolina totaled $288 billion at June 30 2015

What is the spending rate and investment retUrn

Each year the CHIF Board of Directors authorizes the spending rate for the annual endowment distribution The boardrsquos primary objective is to preserve the purchasing power of endowment funds while paying out at least 5 percent of the market value over the long term This constant-growth spending approach provides income for spending today and helps assure funds will be available in the future regardless of the financial market in a given year

As of June 30 2015 the CHIF Board of Directors approved a distribu-tion that equates to 49 percent of the market value of the fund During this same period $1345 million was distributed from CHIF to support endowed programs at Carolina

OFFICE OF unIvErsIty dEvElOpmEnt208 W franklin street Chapel hill nC 27516mailing address po box 309 Chapel hill nC 27514Office 9199622336

givinguncedu

The annual report for the UNC-Chapel Hill Foundation Investment Fund is available online at uncmcuncedu and print copies are available from

The UNC Management Company1400 Environ WayChapel Hill NC 27517Phone 9194421599

$1345 million

$288 billionendoWment total

assets amoUnt

spending available in fy 2016

fy 2015 annUal distribUtion

49

Fy 2015 By tHE numBErs

93annUal retUrn