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University of Illinois & Foundation Endowment Fund

Name: University of Illinois Foundation

Assets Under Management:  $1.5 Billion (Source: University of Illinois Foundation on 1/15/2013)

Annual Report:  University of Illinois & Foundation’s Updated Endowment Information, February 2014

Portfolio Insights:The University of Illinois Foundation Investment Policy Committee has approved an increase in the endowment administrative fee from 1.20% to 1.35% retroactive to July 1, 2013. The endowment payout remains at 4.0% of a six year moving market value average.

The endowment administrative fee is utilized to support development and administrative expenses at the Foundation, campus and unit level. It is calculated on the six-year moving market value average of the endowment pool for FY 14 and is reviewed annually by the Investment Policy Committee. The additional fee
revenue will be used to invest in fundraising staff and programs as the University develpment program moves forward to strategically strengthen its commitment to significantly im proving both fundraising and engagement activity.”

Our team, the Endowment Fund Association (EFA) and is the #1 community and most visited website dedicated to endowment fund professionals.  We provide endowment funds with buy-side co-investment and direct investment deal origination services, outsourced chief investment officer selection help,  and also provide Endowment 500 research and Endowment Database Solutions.

Top University of Illinois & Foundation Endowment Fund Headlines:

1) Edward “Ned” Creedon was named director of private investments at the University of Illinois Foundation, Urbana, a spokeswoman confirmed. It is a new position in the foundation’s new Chicago office. Mr. Creedon reports to Ellen Ellison, chief investment officer. The foundation, which has a combined $1.93 billion in assets among two endowments, increased its target asset allocation to alternatives to 52% in fiscal year 2013, up from 23%. The alternatives consist of 15% each to credit/absolute-return/distressed and hedged equity, 12% real assets and 10% private equity. (Source)

2)  The total U of I endowment is typically made up of many smaller endowment funds and the University of Illinois Foundation holds such gifts permanently as principal. The Foundation then manages these endowments to produce earnings that support designated U of I programs, faculty, and students across the University and its three campuses at Urbana-Champaign, Chicago, and Springfield. A strong endowment increases the University’s ability to more readily predict one of its revenue streams, acting as a potential buffer for political or economic fluctuations. Because an endowed fund continues in perpetuity, an endowed gift has both an immediate and a continuing impact on the University today and in the future. (Source)

3) “I used to say private giving was like sprinkles on the frosting,” says Sidney Micek, president of the University of Illinois Foundation. With only 16 percent of the school’s operating budget coming from state funds, donations are becoming the cake. Illinois’ endowment rose 4 percent over the past three years to $1.6 billion, according to a Bloomberg News analysis.

Maintaining the flow isn’t a sure thing, however. On average, each college student in Illinois graduates with $24,000 in debt, making them poor prospects. At the other extreme, the uber-wealthy—the 1 percent for whom the recession was a speed bump—are being courted by all causes. (Source)

4) Thomas Farrell is president of the University of Illinois Foundation, the school’s fundraising arm. According to The News-Gazette in Champaign, he told university trustees Thursday that the foundation’s goal is to double cash donations and the size of the school’s endowment over the next decade. Under Gov. Pat Quinn’s new budget proposal the state would reduce the university’s appropriation next year by about $33 million to $634 million. The state currently provides about 13 percent of the university’s roughly $5 billion operating budget. The university’s endowment is now about $1.5 billion. (Source)

5) University of Illinois’ university and foundation endowments returned a combined 14.7% for the fiscal year ended, June 30, said Jessica Hampson, spokeswoman for the Urbana-based foundation, in an e-mail. For the three and five years ended June 30, the combined endowment pool returned 9.7% and 12.9%, respectively, according to an endowment report Ms. Hampson provided.

The combined endowment, which has more than $2 billion in assets, has a long-term asset allocation of 24% hedge funds, 17% domestic equity, 13% each real assets and fixed income, 11% international equity, 9% private equity, 7% global equity and 6% emerging markets equity. (Source)


About Richard C. Wilson