University of North Carolina’s Endowment Posts 2% Declineby
Chapel Hill school’s endowment value declined to $2.8 billion
Funds with more than $500 million lost 0.73% in fiscal 2016
The University of North Carolina at Chapel Hill’s endowment lost 2 percent in fiscal 2016, a year in which many endowments are expected to post investment losses.
The Chapel Hill Foundation Investment Fund Inc.’s money is managed through the UNC Investment Fund, which had the same decline. The UNC Investment Fund manages funds for other schools in the UNC system and affiliated endowments. After investment returns, donations and withdrawals, both funds declined in value in the year ended June 30, said Janine Vanzetta Burke, director of investor relations for UNC Management Co., based in Chapel Hill, North Carolina.
The umbrella fund is valued at $4.5 billion, down from $4.6 billion the previous year. Chapel Hill’s fund is $2.8 billion, a decline from $2.9 billion. The 10-year annualized return for both funds is 6.5 percent, according to a performance update posted Tuesday on the school’s website.
Endowment performance by many schools was affected by the worst month for the S&P 500 Index in more than three years last August amid concerns about slowing global growth. Endowments with more than $500 million lost a median 0.73 percent in fiscal 2016, while endowments of all sizes lost 0.74 percent, according to Wilshire Trust Universe Comparison Service. Wilshire’s returns exclude fees.
UNC investment fund’s largest target allocation was 27 percent in long-biased equity, followed by 18 percent each in long/short equity and private equity, according to the website. UNC Management declined to comment.