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At the University of North Carolina at Chapel Hill, there is no one fund that constitutes the University’s “endowment.” For comparison with private colleges and universities, public universities typically combine the market value of the funds controlled by affiliated private foundations, which support their respective schools and units, with the university’s centrally held endowment funds.

At UNC-Chapel Hill, endowment funds, as well as most funds held by its affiliated foundations, are pooled in the UNC-Chapel Hill Foundation Investment Fund Inc. – or Chapel Hill Investment Fund – for investment purposes. A small portion of the funds held by some affiliated foundations, however, is not invested in the Chapel Hill Investment Fund.  That’s why the market value of the Chapel Hill Investment Fund is the best available snapshot of the market value for the UNC-Chapel Hill “endowment.” But it’s not 100 percent inclusive.

As of June 30, 2012, the market value of the Chapel Hill Investment Fund was $2.14 billion, reflecting an $80 million decrease from the $2.22 billion market value at the end of fiscal 2011. That decrease in market value is mainly the result of three components:  a 2.1 percent net investment return on the fund during the year; a $119 million distributed from the fund to support designated University programs; and new private gifts and other additions made to the fund during the year.

The Chapel Hill Investment Fund invests all of its assets in the UNC Investment Fund LLC, which also includes assets allocated to the UNC Investment Fund from other institutions in the University of North Carolina system. The market value of the UNC Investment Fund at June 30, 2012, was $3.18 billion.  When referring to the UNC-Chapel Hill endowment market value, it is important to note the distinction between the Chapel Hill Investment Fund and the UNC Investment Fund.

UNC Management Company officials stated that the 2.1 percent return generated by UNC Investment Fund for fiscal year 2012 was a modest step forward in a year when positive returns were difficult to generate.  Although the Fund’s return for the year was positive and ranked in the top quartile of the BNY Mellon Endowment and Foundation Universe, a 2.1 percent return does not go very far in meeting the long-term goal of growing the principal after spending and inflation.

UNC Management company officials emphasize the Chapel Hill Investment Fund’s strong long-term performance results, with a 10-year return exceeding 8 percent, and ranking in the top quartile of university endowments.

Prospects for continued future growth are strong; management company officials remain confident that the UNC Investment Fund will continue to produce attractive long-term returns.

Current presentation to the UNC-Chapel Hill Board of Trustees:
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Previous presentations to the UNC-Chapel Hill Board of Trustees:
http://www.unc.edu/depts/trustees/PP%201111%20FB%20King.pdf
http://www.unc.edu/depts/trustees/PP%201111%20BFA%20King.pdf

http://www.unc.edu/depts/trustees/PP%201110%20FB%20Endowment%20Fund-%20Jon%20King.pdf
http://www.unc.edu/depts/trustees/PP%201110%20A&F%20Endowment%20Fund-%20Jon%20King.pdf

University Relations contact:  Mike McFarland, (919) 962-8593

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