Annual Report 2024

ANNUAL REPORT

2023–2024

A Message

from the CEO/CIO

During the twelve months ending June 30, 2024, UVIMCO’s Long Term Pool (LTP) gained 7.5% and earned $1 billion in returns for our investors. While we are moderately pleased with these results, the LTP underperformed its passive policy benchmark, which rose by 15.3% during the fiscal year. In times of exceptional market performance, the LTP generally lags the policy benchmark due to our large allocation to illiquid assets. While having a diversified portfolio and a significant allocation to private investments means we don’t generally capture the height of short-term equity market gains, the LTP is also somewhat insulated from material losses in difficult market environments. Such was the case in fiscal year 2022 when the LTP declined 4.7% while the value of global equities fell by 15.4%. Regardless of the market backdrop, the LTP’s performance measurement is best aligned with its investment horizon: over the long term.

While past performance is no guarantee of future success, sticking with our investment approach over the past several decades has served the University quite well. Over the last ten and twenty years, the LTP has generated annualized returns of 8.7% and 9.7%, exceeding the policy portfolio returns by 1.4% and 2.3% per year, respectively. Such outperformance is particularly important as the policy portfolio’s historical and expected returns fail to preserve the purchasing power of the University’s endowment over time. UVIMCO’s performance also compares favorably to that of other colleges and universities, with the LTP generating returns in the top quartile of peers over the three-, ten-, and twenty-year periods.¹

With UVIMCO’s fiftieth anniversary this year, it is especially fulfilling to see how our investment decisions from decades ago continue to provide both new opportunities and intergenerational equity for today’s students, alumni, staff, faculty, and patients. From breaking ground on the Paul and Diane Manning Institute of Biotechnology to opening the nation’s first School of Data Science, we have a glimpse of how our work today might influence the University’s world of tomorrow. In this report, we highlight the evolution of UVIMCO since 1974 and how our investments positively impact innovation on Grounds. We are honored to play such an important role in the University’s success and thank our investors and partners for their enduring support.

¹ Periods ending June 30, 2023.

Serving

the University

The University of Virginia Investment Management Company (UVIMCO) provides investment management services to the University of Virginia (UVA) and University-associated organizations to serve the University’s mission.

UVA is an iconic public university with a long history of nationally ranked schools and programs, distinguished faculty, and innovative research discoveries. The University is ranked the no. 24 best overall university in the country, advancing one spot from last year, according to the U.S. News & World Report. The rankings also identify UVA as the no. 3 “Best Value School” among public institutions.

The partnership between UVIMCO, the University, and University-associated organizations is unique. Our collective work is steeped in a shared culture of excellence, commitment to being great and good, calling to serve the University, and deep roots in the Charlottesville community.

As of June 30, 2024, UVIMCO’s assets under management were $14.2 billion in the Long Term Pool and $88.3 million in the Short Term Pool (Graph 1). The Long Term Pool is comprised of the Rector and Visitors’ endowment ($7.2 billion), the University’s Strategic Investment Fund ($1.9 billion), other University long-term assets ($1.9 billion), and University-associated organizations’ funds ($3.2 billion), including the Darden School Foundation, Law School Foundation, UVA Alumni Association, and Jefferson Scholars Foundation.

OUR SUPPORT OF GREAT AND GOOD

UVA aims to be the best public university by 2030, and one of the very best in the world, whether public or private. UVIMCO’s investment management of the endowment and other long-term funds helps to enable some of the key initiatives that advance this important and ambitious goal.

UVA Expands Financial Aid Program for Virginia Families READ MORE+

UVA’s School of Data Science Opens, Realizing Dream of Historic $120 million Gift READ MORE+

UVA Graduate Schools Earn High Marks READ MORE+

Forbes Names UVA a ‘New Ivy’ in Fresh Look at Higher Education READ MORE+

The vast majority of the Long Term Pool is held in pooled investments and commingled funds, as well as in the forms of fixed income and cash, rather than through direct ownership of individual securities. These assets are invested with the best investment managers from around the globe—skilled individuals who bring diversity of thought, outstanding expertise, and innovation to their investment decisions—ultimately increasing the long-term value of the University’s assets.

The Short Term Pool serves important near-term liquidity needs and is primarily invested in U.S. Treasury notes, bonds, and bills with maturities of not more than one year, except for U.S. Treasury floating rate notes, which may have a maturity of up to two years. By varying allocations of investment funds between the Long Term Pool and Short Term Pool, investors can tailor an individualized portfolio to their desired risk and liquidity levels.

Since 2020, UVIMCO’s assets under management have grown from $9.9 billion to $14.2 billion (Graph 2). By generating returns in excess of the University’s spending rate plus inflation, UVIMCO is providing a steady source of income to support UVA’s mission for future generations of students, faculty, staff, alumni, and patients. Each year, a portion of an endowment fund's value is paid out to support the fund’s designated purposes, and earnings in surplus of this distribution build the endowment’s market value over time. This distribution supports an increasing number of scholarships, professorships, and research funds, and helps expand program offerings and facilities—with the ultimate effect of attracting some of the best students in the nation and world-class faculty to Grounds.

UVIMCO’s management of the endowment is particularly critical when other revenue sources decline. For more than a decade, endowment spending has surpassed state appropriations as a funding source for the University’s academic budget (Graph 3). This means that securing strong returns for the University is more important than ever in maintaining its role as one of the country’s top public universities.

UVIMCO INVESTMENT BOOTCAMP

In February 2024, UVIMCO launched its Investment Bootcamp, a program targeted at supporting second- and third-year UVA students interested in asset management who may have little previous experience in or exposure to the field. Over two days, UVIMCO hosted more than a dozen students at its downtown Charlottesville office, where our managing directors taught short courses on portfolio management and investment strategies. The team enjoyed networking with the UVA students and engaged with many participants following the Bootcamp, including Hamdael Eslaquit (quoted below), who will intern with UVIMCO in 2025.

Thank you all so much at UVIMCO for the wonderful experience! I learned a great deal about the endowment fund structure and had an absolute blast doing so. I can’t wait to see what’s in store for the future of UVIMCO!
Jacob Saul (UVA Class of 2026)

So grateful to the UVIMCO team for their time and expertise in providing this amazing experience! It was a wonderful learning opportunity and I have truly loved every conversation I was able to have with members of the team. Looking forward to seeing how future bootcamps continue to develop and grow the UVA community!
Alexa Sison (UVA Class of 2027)

Thank you, UVIMCO, for the incredible opportunity to participate in the inaugural Investment Bootcamp! I am grateful for the learning experience and am looking forward to all that UVIMCO has to offer.”
Hamdael Eslaquit (UVA Class of 2027)

Investment Philosophy & Tenets

UVIMCO’s investment philosophy guides its strategy through the challenges that the world brings to ensure that our decisions are sound and grounded in what we know works best for achieving excellent long-term results for the University.

WE FOCUS ON THE LONG TERM.

UVIMCO’s investment horizon is measured in years, if not decades, which aligns with the mission of the University as well as the perpetual nature of an endowment.

WE BELIEVE IN ACTIVE MANAGEMENT.

UVIMCO has a long history of partnering with exceptional investment managers who have demonstrated the ability to generate alpha and outperform the passive policy benchmark through disciplined investment processes, novel insights, and hard work.

WE EMPLOY A GLOBAL, FLEXIBLE INVESTMENT MANDATE.

UVIMCO’s investment process is structured and disciplined, but also flexible and innovative in response to constantly evolving global financial markets.

WE EVALUATE AND MANAGE RISK.

UVIMCO dynamically measures and manages risk based on the risk tolerance and capital requirements of the University.

Rotunda & The Lawn, Central Grounds

Fiscal Year 2024

Performance

UVIMCO’s primary objective is to generate inflation-adjusted, long-term returns in excess of the University’s spending rate, thereby achieving our goal of generating a steady source of income to support UVA’s mission.

UVIMCO’s investment performance and strategy start with successful asset allocation and alignment with asset owners. UVIMCO’s investment policy includes a policy portfolio allocation, which our Board of Directors establishes based on the University’s risk tolerance and expected future capital requirements. The Board carefully considers capital market risk and return estimates to ensure that the policy portfolio is appropriately designed to achieve the objectives of the Long Term Pool. The policy portfolio serves as an indicator of how the endowment would fare under passive management.

UVIMCO has a long history of partnering with exceptional investment managers, who generate superior returns for the University. Our returns relative to the policy portfolio demonstrate the added value of active management through our internal investment team and external investment managers.

Our managers invest in Public Equity, Long/Short Equity, Private Equity, Real Assets, Absolute Return, Credit, and Fixed Income. Graph 4 displays the trends in the asset allocation of the Long Term Pool over the past decade, with shifts in recent years primarily due to relative performance.

Fiscal year 2024 was a stellar year for global equities, with the MSCI ACWI gaining almost 20% despite sticky inflation and high interest rates for most of the year. Both global and domestic public equity markets (S&P 500 Index: +24.6%) were propelled by a sustained rally of the “Magnificent 7” mega-cap technology companies (Bloomberg Magnificent 7: +52.1%), which heavily benefited from investor excitement around artificial intelligence. Globally, developed markets (MSCI World: +20.8%) surpassed emerging markets (MSCI Emerging Markets: +13.0%) by a wide margin. Within emerging markets, India was one of the largest positive contributors (MSCI India: +34.9%), while foreign investors remained disenchanted with Chinese equities (MSCI China: –1.4%). By the end of the fiscal year, the 10-year U.S. Treasury yield rose to 4.4% as Treasuries sold off in response to political uncertainties and increased issuance.

Against this market backdrop, the Long Term Pool returned 7.5% and earned $1 billion in returns for our investors during the fiscal year. Public Equity (+10.5%) and Long/Short Equity (+7.4%) trailed the MSCI ACWI (+19.9%) by a large margin, in part due to our longstanding biases to small-caps and emerging markets, as well as underexposure to the select mega-cap companies that led the market rallies. Private strategies collectively generated 4.3%, while Real Assets (+10.8%) and our diversifying strategies (+6.5%) provided important diversification and meaningful returns for the Long Term Pool.

The Long Term Pool generally underperforms the policy benchmark during times of exceptional market performance. The primary factor impacting the Long Term Pool's fiscal year performance is its ~45% allocation to private investments, which drives significant basis risk versus the all-liquid passive benchmark. Importantly, the success or failure of private investments can only be properly evaluated over long time periods that capture complete market cycles, provide ample opportunity for innovation to take hold, and enable business improvements to bear fruit. While past performance is no guarantee of future success, relatively consistent commitments to private investments over the past several decades have served the University quite well.

Historically, we have been well paid for assuming market, manager, and liquidity risks that differ from that of the policy portfolio. Our longer-term performance (Table 1) continues to be excellent compared to both the policy benchmark and the required return. Over the last ten and twenty years, the Long Term Pool has generated annualized returns of 8.7% and 9.7%, exceeding the policy portfolio returns by 1.4% and 2.3% per year, respectively. The ten- and twenty-year annualized returns also exceed the 8.0% return required to preserve the purchasing power of the endowment over time.

According to Wilshire Trust Universe Comparison Service (TUCS) data, UVIMCO consistently outperforms its institutional peers in addition to securing long-term returns above the policy benchmark and required return. Over the past twenty years, UVIMCO’s annualized return of 9.7% has well exceeded the 7.3% garnered by median peers (Graph 5).

In fiscal year 2025, UVIMCO remains focused on generating long-term, risk-adjusted returns for the University and associated organizations in perpetuity.

Rotunda in Spring

Celebrating

50 Years

While the first University of Virginia endowment check was written close to a century ago, we like to think that professional investment management of UVA’s endowment starts with the hiring of Alice Handy—the first person to manage the University’s investments—in 1974. As we highlighted in last year’s report, Alice Handy deeply impacted UVA for almost 30 years and served as the cornerstone of UVA’s endowment investment management program. In this report, we celebrate not only Alice’s contributions but other meaningful people, decisions, and market movements that have shaped what UVIMCO is today.

The following timeline highlights the key events in the history of UVA’s endowment from 1974 through 2024. Follow along through the years and expand each decade to explore our milestones.

The History of UVA’s Endowment: 1974 – 2024

1970s Beginning

1973: Arab Oil Embargo: Ceased U.S. oil imports from participating OAPEC nations, reducing supply and causing prices to quadruple.

1974: Endowment AUM $50 million

1974: UVA reorganizes its endowment portfolio, diversifies holdings and hires new external fund managers.

1974: UVA hires Alice Handy as the first investment officer. Read more about Alice's impact in last year's report.

1978: UVA hires Cambridge Associates as an external consultant.

1980s Expansion and Diversification

1980: Endowment AUM $142 million

1980: UVA has a relatively progressive portfolio with a 75% allocation to equities.

1982: UVA makes initial investment in venture capital.

1986: UVA reallocates a portion of the endowment from international equities to global fixed income.

1987: Black Monday (October 19): Largest one-day stock decline in history with the Dow Jones Industrial Average dropping 22.6% in a single trading session.

1987: UVA begins to manage the fixed income portfolio internally.

1990s Creation of UVIMCO

1990: Endowment AUM $464 million

1991: UVA earns strong returns through real estate investments via three external investment managers.

1997: UVIMCO diversifies its portfolio through hedge funds and long/short equity.

1998: UVA Board of Visitors Finance Committee establishes the University of Investment Management Company as a subcommittee.

1999: Dow breaks 10,000.

1999: Venture capital portfolio grows to just over $200 million; UVIMCO introduces derivatives as a portfolio hedge strategy.

2000s UVIMCO Independence

2000: Endowment AUM $1.7 billion

2000: Dot-Com IPO bubble burst following a significant rise from 1995 to 2000, the NASDAQ fell by 75% March 2000 to October 2002, erasing most of its prior gains.

2001: UVIMCO establishes its own independent charter and mission.

2003: Hedge funds represent over 50% of UVIMCO's portfolio.

2004: Chris Brightman joins as CEO/CIO, further develops UVIMCO as an independent organization with its own Board of Directors and governance model.

2005: University-associated organizations invest over $400 million with UVIMCO.

2006: UVIMCO adopts revised asset allocation to decrease hedge fund allocation and increase exposure to private investments over time.

2008: Great Financial Crisis: The worst U.S. economic disaster since the Great Depression with the U.S. stock market wiping out $8 trillion in value.

2009: UVIMCO's fiscal year return is -21% as the Great Financial Crisis' impact is felt in the portfolio.

2010s Recovery and Strategic Growth

2010: Endowment AUM $4.5 billion

2011: UVIMCO expands focus on co-investment opportunities in private equity, real estate, and resources to benefit from favorable investment terms and fees.

2011: Larry Kochard joins as CEO/CIO, changes UVIMCO's asset allocation to increase the overall liquidity position of UVIMCO's portfolio.

2012: Spending distributions from UVA endowment exceed state appropriations for the first time.

2012: UVIMCO launches the Short Term Pool to preserve principal and provide a more liquid investment vehicle to UVA and associated organizations.

2015: UVIMCO establishes the Sherri King Memorial Scholarship.

2016: Brexit Referendum: The UK elected to leave the European Union, significantly impacting the UK's economy.

2017: Yale University recognizes UVIMCO as a top twenty-year endowment performer, surpassing by a comfortable margin the returns of stocks, stocks/bond mix, and bonds.

2018: Robert Durden joins as CEO/CIO, leads UVIMCO through the global pandemic and resulting market volatility.

2020s Resilience and Forward Thinking

2020: Endowment AUM $9.9 billion

2020: Pandemic-induced recession: The COVID-19 pandemic and resulting lockdowns triggered a sharp contraction of economic activity and massive job losses.

2020: UVIMCO increases focus on absolute return investments that are uncorrelated with broader market movements.

2021: UVIMCO forms its Advisory Committee on Investor Responsibility (ACIR) to guide investor responsibility decisions.

2021: UVIMCO generates a historical fiscal year return of 49% and gains more than $4.8 billion in value for investors.

2022: UVIMCO continues to increase overall allocation to private investments.

2024: Endowment AUM $14.2 billion

2024: UVIMCO continues to perform in the top quartile of its peers over ten- and twenty-year periods.

Looking Back on UVIMCO

When I started in 1981, the Endowment was approximately $178 million, and when I retired in March 2017, it was $8.3 billion. A tremendous amount of credit for the success that UVIMCO has achieved goes to Ray Hunt for the vision he had for managing the Endowment; to Alice Handy for first implementing and then executing on that vision; to Leonard W. Sandridge, Jr., Mr. Hunt’s successor; numerous Board Members who served over the years; as well as successive CEOs/CIOs who adhered to the core investment principles initiated by their predecessors; all of whom contributed to the rock solid stability of the University’s finances and the unparalleled professional management of the Endowment for the past fifty years.
Rob Walker Freer, Former UVIMCO Managing Director

UVA’s endowment was established decades ago with a vision for the future, and UVIMCO’s role is to serve as a careful steward of that legacy. Our current board and staff represent the endowment’s caretakers during a brief chapter in its long life, and it’s our responsibility to manage these funds with the utmost diligence. The decisions we make today will echo for generations, and long after we’re gone, the endowment will continue to grow and fulfill its mission.
Kristina Alimard, UVIMCO COO

Under Ray C. Hunt, Jr.'s leadership, the University established an investment function in 1974 to manage its endowment assets. With $50 million and Alice Handy as the new investment officer, this initiative marked a pivotal moment in the University’s history. As the University Treasurer, I had the privilege of working with Alice and her team in the early years. Today, UVIMCO is recognized as one of the premier investment functions in higher education.
Leonard Sandridge, UVA Executive VP and COO, Retired

Data Science Building, Central Grounds

Being Great and Good:

Impact Stories

An endowed gift is a powerful investment in the future of the University and its affiliated organizations. When invested in UVIMCO’s Long Term Pool, endowed funds serve as a sustainable source of funding professorships to recruit and retain distinguished faculty; scholarships and fellowships to support deserving students; lectureships to bring distinguished speakers to Grounds; library acquisitions to support world-class scholarship; and academic prizes to recognize outstanding students and faculty. The University’s unrestricted endowment generates vital funding for operations and enables the University to respond to important needs as they arise.

ENDOWING TECHNOLOGY EXCELLENCE

UVA DEVELOPS OPEN-SOURCE LIBRARY OF COMPUTER-ASSISTED DESIGN MODELS FOR K-12

Professors at the School of Education and Human Development are leading a national effort to expand the use of open-source hardware in K-12 schools. Known as the Educational CAD Model Library, a wide variety of peer-reviewed scientific tools will be made accessible to schools, including 3D printers, computer-controlled microscopes, biochemistry experiment equipment, specialized tanks for studying wave phenomenon, and electromagnetic apparatus for science demonstrations.

“By providing open access to high-quality, peer-reviewed educational resources, the CAD Library not only provides an innovative approach to supporting the diverse learning needs of teachers and their students, but also nurtures a responsive and inclusive approach to STEM education,” said UVA Professor Glen Bull.

READ MORE+

Boris Kovatchev, PhD, is the director of the UVA Center for Diabetes Technology.

RESEARCHERS HARNESS AI TO ENHANCE ARTIFICIAL PANCREAS FUNCTION

UVA health researchers conducted a successful clinical trial of a data-driven artificial pancreas system that may lead to better delivery of life-saving insulin for patients with type 1 diabetes. Researchers used artificial intelligence (AI) to enhance efficiency and function of insulin “pump” delivery systems, potentially improving blood sugar maintenance levels compared to a non-AI supported delivery system.

“This opens the door to real-time, AI-driven personalized insulin delivery,” said Boris Kovatchev, director of the UVA Center for Diabetes Technology. Development of innovations to improve treatment options and improve patient care is a key priority under UVA Health’s 10-year strategic plan and is aligned with the mission of UVA’s forthcoming Paul and Diane Manning Institute of Biotechnology.

READ MORE+

VIRTUAL REALITY FLIGHT SIMULATORS EXPAND OPPORTUNITIES FOR AIR FORCE ROTC CADETS

The Jefferson Trust awarded a first-ever grant to UVA’s Air Force ROTC aimed at increasing the availability of virtual reality flight training and simulator options on Grounds. The grant funding will enhance training opportunities and increase the number of pilots graduating from UVA. The new equipment provides photorealistic replicas of the same training aircraft used by the United States Air Force and Navy.

This funding “affords UVA cadets and prospective UVA students the opportunity to develop procedural knowledge and potential interest in serving as a pilot in the world’s greatest air force,” said Col. Jason B. Bell, commander of ROTC Detachment 890. The University’s Air Force ROTC detachment is rated among the top 10% in the country.

READ MORE+

AI TOOL TO IMPROVE HEART FAILURE CARE

UVA Health researchers have developed a powerful new risk assessment tool for predicting outcomes in heart failure patients. The new tool improves on existing risk assessment tools for heart failure by harnessing the power of machine learning and AI to determine patient-specific risks of developing unfavorable outcomes with heart failure. The model, called CARNA, uses anonymized data from thousands of patients to quickly summarize risk factor and assist physicians in making personalized care recommendations. As part of its ten-year strategic plan commitment to improve care for patients across Virginia and beyond, UVA Health has made CARNA freely available to clinicians.

“The collaborative research environment at the University of Virginia made this work possible by bringing together experts in heart failure, computer science, data science, and statistics,” said researcher Kenneth Bilchick, MD, a cardiologist at UVA Health. “Multidisciplinary biomedical research … will be critical to helping our patients benefit from AI in the coming years and decades.”

READ MORE+

Investor

Responsibility

UVIMCO utilizes an Investor Responsibility Framework, which guides our responsible investing approach and rests on the assumption that proactive management of environmental, social, and governance (ESG) factors enhances our ability to deliver strong, risk-adjusted returns for the University.

Our 2024 Investor Responsibility Report outlines the continued progress made toward our investor responsibility goals. Over the past year, we strengthened our engagement with external managers on material ESG risks and opportunities, deepened our approach to climate risk, and continued investing in energy transition opportunities. To learn more about UVIMCO’s responsible investing efforts, visit our “Responsibility” page.

University Rowing Team, Rivanna Reservoir, Charlottesville, VA

Meet

the Team

UVIMCO Board of Directors

UVIMCO’s Board of Directors is comprised of a diverse and distinguished group of industry leaders who provide essential guidance on UVIMCO’s investment strategy to ensure the continued success of the University of Virginia’s mission.

MEET THE BOARD+

UVIMCO Team

UVIMCO’s team is comprised of investment and operational professionals who are passionate about the University and dedicated to achieving excellence in investment management. We value integrity, collaboration, excellence, intellectual honesty, and diversity of thought. We strive to be included in the top quartile of university endowments by generating superior investment returns, maintaining an exceptional reputation, and serving as a true partner to the University. Our leadership team members bring strong investment acumen, diverse skill sets, deep knowledge of the industry, and enthusiasm to serve the University every day.

MEET THE TEAM+

Rotunda, Lawn, & Academical Village, Central Grounds

Annual Report 2023

ANNUAL REPORT

2022–2023

DOWNLOAD EXECUTIVE SUMMARY

A Message

from the CEO/CIO

Fiscal year 2023 proved to be both volatile and challenging for long-term institutional investors. During the twelve months ending June 30, 2023, the Long Term Pool gained 2% but underperformed both the policy portfolio (12.3%) and other passive market indices. The University of Virginia Investment Management Company’s Private Equity strategies unwound a portion of prior year gains, while the Public Equity and Long/Short Equity portfolios underperformed broad markets.

Resilience – or our capacity to withstand challenging years and ability to stick with our investment strategy – is critical to our long-term success. Fortunately, the nature of endowment investing gives us the ability to be patient during times of market volatility, while short-term losses provide opportunities for future long-term gains. We are working hard to identify and underwrite pockets of value created by current market movements while also actively seeking the next generation of investment partners. Resilience is also evidenced in the diversified nature of our investments. For example, gains in diversifying strategies such as Real Assets, Absolute Return, and Credit provided important support to the overall Long Term Pool return during the fiscal year.

We believe that time in the market is better than timing the market. The Long Term Pool’s twenty-year annualized return of 10% exceeds both the returns of the passive benchmark (7.5%) and the return needed to preserve the purchasing power of the University’s endowment (8%). We are pleased with this level of historical performance but continuously reflect upon our investment process and existing portfolio to help ensure future success.

Our hard work has a singular focus: to support the University of Virginia in perpetuity. Our investment and operations teams work hard every day to ensure we remain the absolute best financial partner to the University. While many factors change over time—from the University to the market to our team—our mission and values remain a steady guiding light. In this report, we highlight how our impact shows up on Grounds, from supporting key initiatives in the “Great and Good Plan” to different aspects of the Virginia athletics program. We are honored to play such an important role in the University’s success and thank our investors and partners for their enduring support.

Serving

the University

UVA is an iconic public university with a long history of nationally ranked schools and programs, distinguished faculty, and innovative research discoveries. The University is ranked the no. 2 best value public university by Princeton Review, moving up one spot from the previous year. UVA is also ranked the best public college in the nation for financial aid for the third year in a row.

OUR SUPPORT OF GREAT AND GOOD

UVA aims is to be the best public university in 2030, and one of the very best in the world, whether public or private. UVIMCO’s investment management of the endowment and other long-term funds helps to enable some of the key initiatives that advance this important and ambitious goal.

UVA leverages $100 million gift to launch Paul and Diane Manning Institute of Biotechnology READ MORE+

UVA invests additional $65 million in Bicentennial Funds READ MORE+

$10 million investment in 'Cavalier Fund' to broaden opportunities for students READ MORE+

UVA’s plans for a School of Data Science READ MORE+

As of June 30, 2023, UVIMCO’s assets under management were $13.6 billion in the Long Term Pool and $266.6 million in the Short Term Pool (Graph 1). Within UVIMCO’s Long Term Pool, $7 billion represents the University of Virginia endowment, $1.9 billion represents the University’s Strategic Investment Fund, $1.7 billion represents other University long-term assets, and $3 billion represents assets held by University-associated organizations, including the Darden School Foundation, Law School Foundation, UVA Alumni Association, and Jefferson Scholars Foundation.

The vast majority of the Long Term Pool is held in pooled investments and commingled funds, as well as in the forms of fixed income and cash, rather than through direct ownership of individual securities. These assets are invested with the best investment managers from around the globe who bring diversity of thought, outstanding expertise, and innovation to their investment decisions ultimately increasing the long-term value of the University’s assets.

Since 2019, UVIMCO’s assets under management have grown from $9.6 billion to $13.6 billion (Graph 2). By generating returns in excess of the University’s spending rate plus inflation, UVIMCO is providing a steady source of income to support the University’s mission for future generations of students, faculty, staff, alumni, and patients. Each year, a portion of the endowment value is paid out to support the funds’ designated purposes, and earnings in surplus of this distribution build the endowment’s market value over time. This distribution supports an increasing number of scholarships, professorships, and research funds, and helps expand program offerings and facilities - with the ultimate effect of attracting some of the best students in the nation and world-class faculty to Grounds.

UVIMCO’s management of the endowment is particularly critical when other revenue sources decline. For more than a decade, endowment spending has surpassed state appropriations as a funding source for the University’s academic budget (Graph 3). As a result, UVIMCO’s strong returns are more important than ever in ensuring that the University of Virginia remains one of the best public universities in the country.

UVIMCO MENTORSHIP PROGRAM

UVIMCO serves the University beyond managing its assets and generating strong long-term returns. Recently, UVIMCO formed a mentorship program with the McIntire School of Commerce’s Commerce Cohort to mentor high-achieving first-year students interested in finance, while strengthening the connection between UVIMCO and the University.

I was excited about the mentorship opportunity because I could gain more information about the world of investing and UVIMCO. Having the chance to do this with someone as my guide seemed perfect. Having a mentor with experience and expertise to advise me and provide feedback is essential for my collegiate and professional path. Knowing that I am building a relationship with someone supporting me and investing in my success gives me a confidence I wouldn't have otherwise."
Olivia Colston, 2^nd year UVA student

Proactively reaching out to people interested in the investment industry is vitally important. Finance can seem opaque and daunting to those without prior experience or background, which is why early and clear communication with students is vital to get people who may not be open to pursuing the investment path otherwise. Having more career resources available is always a good thing, and being able to provide information and answer questions one-on-one is the best way to help young people determine whether the investment management industry is one they are interested in."
Harry Heyworth, UVIMCO Operations Associate

Investment Philosophy & Tenets

WE FOCUS ON THE LONG TERM.

UVIMCO’s investment horizon is measured in years, if not decades, which aligns with the mission of the University as well as the perpetual nature of an endowment.

WE BELIEVE IN ACTIVE MANAGEMENT.

WE EMPLOY A GLOBAL, FLEXIBLE INVESTMENT MANDATE.

UVIMCO’s investment process is structured and disciplined, but also ﬂexible and innovative in response to constantly evolving global ﬁnancial markets.

WE EVALUATE AND MANAGE RISK.

UVIMCO dynamically measures and manages risk based on the risk tolerance and capital requirements of the University.

Fiscal Year 2023

Performance

UVIMCO’s investment performance and strategy starts with successful asset allocation and alignment with asset owners. UVIMCO’s investment policy includes a policy portfolio allocation, which our Board of Directors establishes based on the University’s risk tolerance and expected future capital requirements. The Board carefully considers capital market risk and return estimates to ensure that the policy portfolio is appropriately designed to achieve the objectives of the Long Term Pool. The policy portfolio serves as an indicator of how the endowment would fare under passive management.

UVIMCO has a long history of partnering with exceptional investment managers who have demonstrated the ability to generate alpha and outperform the passive policy portfolio through disciplined investment processes, novel insights, and hard work. Our returns relative to the policy portfolio demonstrate the added value of active management through our internal investment team and external investment managers.

During fiscal year 2023, investors shrugged off concerns regarding rising interest rates and elevated inflation. In addition to improvements in investor sentiment, significant advances in the accessibility of generative artificial intelligence drove outsized equity returns, as evidenced by the MSCI All Country World Index’s (ACWI) return of 17.1%. Domestically, U.S. unemployment was under 4%, consumer inflation slowed from 9.1% to 3%, real U.S. GDP grew by 2.6%, and the S&P 500 gained 19.6% over the course of the fiscal year. Similarly, Japanese and developed European equity markets generated double-digit gains (in USD). China proved an exception to global equity market optimism with the MSCI China Index declining by 16.7%, mostly driven by geopolitical factors and domestic policy challenges. In the face of overall strong equity markets and rising interest rates, U.S. Treasury bond markets posted negative returns with the blended Bloomberg U.S. Treasury Bond Index losing 1.7% for the year.

This market backdrop proved challenging for diversified institutional portfolios with significant allocations to private investments. During the twelve months ending June 30, 2023, the Long Term Pool gained 2% and underperformed the 12.3% return generated by its policy portfolio benchmark. Our Public Equity and Long/Short Equity portfolios suffered from outsized exposures to emerging markets, particularly China. Additionally, our developed market managers were not able to fully capture the strong gains seen in the domestic equity market. Private investments significantly lagged public markets, with our Private Equity portfolio declining by 5.3% while global public equities rose substantially. Growth Equity, Venture Capital, and Resources underperformed the MSCI ACWI by wide margins due to both routine lags in valuation adjustments and the industry exposures of underlying investments. Diversifying strategies of Fixed Income and Cash, Absolute Return, and Credit collectively returned 1.6% and outpaced the blended Bloomberg U.S. Treasury Bond Index by 3.4% but failed to fully compensate for the one-year underperformance of the Long Term Pool’s equity investments.

Fortunately, the impact of valuation timing for private investments differences dissipates over multi-year periods, which is one reason why we focus most on long-term performance data. Further, we believe that bearing different market, manager, and liquidity risks than the policy benchmark helps us earn exemplary investment results over time. Our historical performance (Table 1) continues to be excellent over longer time periods compared to both the policy benchmark and required return. Over the last ten and twenty years, the Long Term Pool has generated annualized returns of 9.8% and 10%, exceeding the policy portfolio returns by 2.4% and 2.5% per year, respectively. The ten and twenty-year annualized returns are well in excess of the 8% return required to preserve the purchasing power of the endowment.

In addition to securing long-term returns above the policy benchmark and required return, UVIMCO consistently outperforms its institutional peers according to Wilshire Trust Universe Comparison Service (TUCS) data. Over the past twenty years, UVIMCO’s annualized return of 10% has well exceeded the 7.5% garnered by median peers (Graph 5).

As we look ahead to fiscal year 2024, UVIMCO’s focus remains on generating long-term, risk-adjusted returns for the University and associated organizations in perpetuity.

In Memoriam:

Alice Handy

ALICE HANDY

Former UVIMCO President

Alice Handy, a giant in the investment world and former UVIMCO president, passed away in May 2023. Handy was known for her true love of investing in nonprofits and constantly embracing challenge and opportunity wherever she could find it. With 29 years of managing the University of Virginia endowment (1974-2003) under her belt, starting as the first investment officer, moving up to treasurer, and then leading UVIMCO as its first president, she had a deep impact on UVA and the endowment management world. Handy created an innovative investment strategy that helped to substantially grow the endowment and shape UVIMCO into what it is today. Beyond her impact on the endowment, she was a dynamic person who left an indelible mark on all who knew her. Handy enthusiastically served as a role model, friend, and leader, and was known as a trendsetter, risk taker, and breaker of glass ceilings. She will be profoundly missed by those who knew her, and we are thankful for her enduring impact on the endowment.

Handy had many words of wisdom that she shared with her fellow investors, but one quote in particular summed up her view of investing: “To fail conventionally is better than succeeding unconventionally. The market offers a lot of slam dunks in hindsight, but if you’re really valuation-oriented and you think about it, there’s always something to be done.”

Alice was a truly transformative individual, who not only changed the course of my life, but her impact on the University’s Endowment, and ultimately the University as a whole, was immense. Her influence in the investment world, of course, goes way beyond the University, as she accomplished so much with Investure and the various university and philanthropic boards that she served on."
Rob Freer, former Managing Director, UVIMCO

Being Great and Good:

Impact Stories

An endowed gift is a powerful investment in the future of the University and its affiliated organizations. When invested in UVIMCO’s Long Term Pool, endowed funds serve as a sustainable source of funding professorships to recruit and retain distinguished faculty; scholarships and fellowships to support deserving students; lectureships to bring distinguished speakers to Grounds; library acquisitions; and academic prizes to recognize outstanding students and faculty. The University’s unrestricted endowment generates vital funding for operations and enables the University to respond to important needs as they arise.

ENDOWING ATHLETIC EXCELLENCE

The Virginia Athletics Foundation (VAF), through its fundraising efforts, strives to support a preeminent intercollegiate athletics program at the University of Virginia by providing student-athletes the opportunity to achieve academic and athletic excellence. UVIMCO manages assets on behalf of VAF, ultimately enhancing the University’s athletics program by securing strong long-term returns used for important initiatives, including scholarships and academic support for student-athletes.

The UVA athletics program ranks fourth in the nation, based on results from the National Association of Collegiate Directors of Athletics. The University of Virginia finished third in 2010 and fourth in 2014, respectively; placed in the top twenty-five for the sixteenth consecutive year; and is one of only ten schools to rank in the top thirty of the final Directors’ Cup standings in every year of the competition.

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3-PEAT! UVA SWIMMERS ESTABLISH DYNASTY WITH LATEST CHAMPIONSHIP

The University of Virginia women’s swimming and diving team established a dynasty when it won a third consecutive national title. The top-ranked Cavaliers, led by coach Todd DeSorbo and Olympians Kate Douglass and Alex Walsh, dominated the NCAA championship meet in Knoxville, Tennessee, outscoring the second-place finisher, the University of Texas, by 127 points. UVA swept all five relay races and added six individual NCAA championships.

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NCAA CHAMPIONS SAVOR LATEST STORYBOOK ENDING

In 2022, UVA entered the NCAA men’s tennis tournament as the no. 7 seed and exited with the title. The Cavaliers came into this year’s tournament seeded no. 5, and once again they were the last team standing. After winning three matches at the Boar’s Head Resort in Charlottesville, the Wahoos flew to Orlando, where they knocked off no. 4 seed Kentucky in the quarterfinals, no. 1 seed Texas in the semifinals, and, the no. 3 seed Ohio State in the NCAA final.

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UVA MEN’S GOLF MAKES HISTORY BY ASCENDING TO NO. 1 RANKING

The nation’s leading men’s college golf team resides on Grounds. Golfweek released its collegiate rankings in September 2022, and, for the first time in program history, the University of Virginia topped the list. Entering the season, UVA returned its top two players from the previous year, fourth-year student Pietro Bovari and third-year George Duangmanee, and added a couple of coveted first-year students in Ben James and Bryan Lee, headliners to the best recruiting class in program history.

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UVA SPORTS FAST FACTS

33 total NCAA Championship titles and 9 non-NCAA titles through May 2023

8 UVA athletes earned an ACC Player of the Year award in the 2022-2023 athletic year

Over 100 UVA athletes named to an All-ACC Team or Honorable Mention in the 2022-2023 athletic year

$19.7 million raised in VAF’s Annual Fund in 2022 to fund all athletic scholarships in conjunction with endowment distributions

Investor

Responsibility

In 2022, UVIMCO released its Investor Responsibility Framework and inaugural Investor Responsibility Report, which rest on the assumption that the deliberate integration of environmental, social, and governance (ESG) considerations leads to better investment processes and enhances long-term, risk-adjusted investment returns.

Our 2023 Investor Responsibility Report outlines the significant progress made in the past year toward the goals laid out in both the Framework and the 2022 report. Over the past year, we gathered more in-depth insights on our managers’ ESG policies; deepened engagement with external managers on overall ESG integration and, specifically, climate change; undertook extensive efforts to measure and assess the carbon footprint of our portfolio; and continued investing in climate solutions across multiple asset classes. We also enhanced the sustainability of our own operations by measuring our operational emissions footprint, upholding robust governance practices, and continuing to prioritize our people above all else.

Meet

the Team

UVIMCO Board of Directors

UVIMCO’s Board of Directors is comprised of a diverse and distinguished group of industry leaders, who provide essential guidance around UVIMCO’s investment strategy to ensure the continued success of the University of Virginia’s mission. Meet the Board of Directors.

UVIMCO Leadership

UVIMCO’s team is comprised of forty-two professionals who are passionate about the University and dedicated to achieving excellence in investment management. We value integrity, collaboration, excellence, intellectual honesty, and diversity of thought. We strive to be included in the top quartile of university endowments by generating superior investment returns, maintaining an exceptional reputation, and serving as a true partner to the University. Our leadership team members bring strong investment acumen, diverse skill sets, deep knowledge of the industry, and enthusiasm to serve the University every day. Meet the Leadership Team.

Annual Report 2022

ANNUAL REPORT

2021–2022

DOWNLOAD EXECUTIVE SUMMARY

A Message

from the CEO/CIO

Global equities and bonds lost value during the twelve months ending June 30, 2022, reflecting a challenging market environment. High inflation and geopolitical uncertainties, layered on top of a fragile, pandemic-stricken world economy, drove markets into correction territory. Against this backdrop, UVIMCO’s diversified portfolio declined by 4.7% during the fiscal year compared to a 13.2% loss for the passive policy portfolio. Negative returns generated by our Public Equity, Long/Short Equity, and Fixed Income portfolios were partly offset by gains in Real Assets and Absolute Return.

In the 2021 fiscal year, UVIMCO’s Long Term Pool generated a historic return of 49%. While we celebrated the many benefits that increase would provide to the University of Virginia, we also acknowledged that such a strong gain would surely come at the expense of future returns. Markets are bound by gravity, after all. While we never like to report a loss to our investors, this fiscal year’s 4.7% decline in the Long Term Pool’s value represents a relatively modest reversal of the previous year’s gains. With that said, markets offer no assurances of modesty or otherwise, and the investment environment will likely remain challenging.

Short-term volatility in markets and in our own portfolio reminds us to focus most on long-term results. For decades, UVIMCO has met its primary objective of maintaining the purchasing power of the University’s long-term investments. Over the last three, five, and ten years, the Long Term Pool has generated annualized returns of 14.4%, 12%, and 11%, respectively. These compare favorably with our required return as well as our passive policy benchmark.

I have our team to thank for our ongoing success—their investment acumen, superior manager selection, and passion for the University are second to none. Our Board of Directors, an exceptional group of industry leaders and University graduates, has guided us through short-term challenges without losing sight of our longer-term goals. In this report, we highlight one of our current Board members, John Harris Jr. (Law ’79), and his time at UVA and as an industry leader.

Our long-term returns supported countless University initiatives this year. The Jefferson Scholars Foundation awarded full merit scholarships to a record number of highly accomplished high school seniors, the Law School enabled law students to work in public service roles this summer, and the Health System established the first center of its kind dedicated to advancing immunotherapeutic cancer treatments. We encourage you to read more about these University initiatives in the Impact Stories section of this report.

We are humbled by the noble work of the University, and it inspires us to remain focused on our mission. Patience, resilience, and an opportunistic mindset remain at the heart of our investment philosophy, and we are passionate about pursuing investment excellence on behalf of the University and broader community. Successful investing is not only about how much money we manage, but our ability to preserve and grow it for future generations of University students, staff, faculty, and alumni. I know that we are well-positioned for future success, and we thank our investors for their continued support and strong partnership.

Serving

the University

UVA is an iconic public university with a long history of nationally ranked schools and programs, distinguished faculty, and innovative research discoveries. Now in its third century, the University boasts an affordable, accessible, and world-class education.

The partnership between UVIMCO, the University, and University-associated organizations is unique. Our collective work is steeped in a shared culture of excellence, commitment to being great and good, calling to serve the University, and deep roots in the Charlottesville community.

UVA BY THE NUMBERS

Newsweek Names UVA Medical Center No. 1 Hospital in Virginia

UVA School of Law Ranked No.1 Public by U.S. News

CodeSignal finds UVA No. 1 in Software Engineering, Topping Standard-Bearers Stanford, Cal-Berkeley

UVA Children's Hospital Ranked No. 1 in Virginia by U.S. News

UVIMCO invests the endowment and other long-term funds of the University and associated organizations in its Long Term Pool with the primary objective of maximizing its long-term, inflation-adjusted returns commensurate with the risk level of the University. As of June 30, 2022, UVIMCO’s assets under management were $13.6 billion in the Long Term Pool and $175.8 million in the Short Term Pool (Graph 1). Within UVIMCO’s Long Term Pool, $7 billion represents the Rector and Visitors' endowment, $1.9 billion represents the University’s Strategic Investment Fund, $1.7 billion represents other University long-term assets, and $3 billion represents assets held by University-associated organizations, including the Darden School Foundation, Law School Foundation, UVA Alumni Association, and Jefferson Scholars Foundation.

The vast majority of the Long Term Pool is held in pooled investments and commingled funds, as well as in the forms of fixed income and cash, rather than through direct ownership of individual securities. These assets are invested with the best investment managers from around the globe, who bring diversity of thought, outstanding expertise, and innovation to their investment decisions—ultimately increasing the long-term value of the University’s assets.

Since 2018, UVIMCO’s assets under management have grown from $9.5 billion to $13.6 billion (Graph 2). By generating returns in excess of the University’s spending rate plus inflation, UVIMCO is providing a steady source of income to support the University’s mission for future generations of students, faculty, staff, alumni, and patients. Each year, a portion of the endowment value is paid out to support the funds’ designated purposes, and earnings in surplus of this distribution build the endowment’s market value over time. This distribution supports an increasing number of scholarships, professorships, and research funds, and helps expand program offerings and facilities—with the ultimate effect of attracting some of the best students in the nation and world-class faculty to Grounds.

UVIMCO’s management of the endowment is particularly critical when other revenue sources decline. Over the past decade, endowment spending has surpassed state appropriations as a funding source for the University’s academic budget (Graph 3). This means that securing strong returns for the University is more important than ever in maintaining its role as one of the country's top public universities.

Investment Philosophy & Tenets

WE FOCUS ON THE LONG TERM.

UVIMCO’s investment horizon is measured in years, if not decades, which aligns with the mission of the University as well as the perpetual nature of an endowment.

WE BELIEVE IN ACTIVE MANAGEMENT.

WE EMPLOY A GLOBAL, FLEXIBLE INVESTMENT MANDATE.

UVIMCO’s investment process is structured and disciplined, but also ﬂexible and innovative in response to constantly evolving global ﬁnancial markets.

WE EVALUATE AND MANAGE RISK.

UVIMCO dynamically measures and manages risk based on the risk tolerance and capital requirements of the University.

Fiscal Year 2022

Performance

UVIMCO’s investment performance and strategy starts with successful asset allocation and alignment with asset owners. UVIMCO’s investment policy includes a policy portfolio allocation, which its Board of Directors establishes based on the University’s risk tolerance and expected future capital requirements. The Board carefully considers capital market risk and return estimates to ensure that the policy portfolio is appropriately designed to achieve the objectives of the Long Term Pool. The policy portfolio serves as an indicator of how the endowment would fare under passive management.

UVIMCO has a long history of partnering with exceptional investment managers who have demonstrated the ability to generate alpha and outperform the passive policy portfolio through disciplined investment processes, novel insights, and hard work. Our returns relative to the policy portfolio demonstrate the added value of active management through its internal investment team and external investment managers.

Our managers invest in Public Equity, Long/Short Equity, Private Equity, Real Assets, Absolute Return, Credit, and Fixed Income. Graph 4 displays the trends in the asset allocation of the Long Term Pool over the past decade, which has remained relatively stable. Between 2020 and 2022, the shift in asset allocation was a function of relative performance.

Fiscal year 2022 was a difficult market environment for investors. Global equities experienced market volatility, with the MSCI ACWI down 15.4% at the end of June. Bonds also traded off during the fiscal year, disappointing investors relying on their typically diversifying qualities and reminding them that Treasuries bear price risk prior to maturity. Energy and food prices continued to rise, exposing systemic supply-chain weaknesses. In response, central banks aggressively tightened monetary policy to rein in inflation, sparking fears of a recession despite a strong U.S. job market.

In the face of market volatility, UVIMCO’s Long Term Pool declined 4.7% during this fiscal year. However, it outperformed the passive policy portfolio by 8.5%, demonstrating the investment acumen of the UVIMCO team and external managers. The returns of our investment strategies fluctuate from year to year. The strategies that did well last year—Public Equity, Private Equity, and Long/Short Equity—significantly underperformed this year and were offset by gains in Real Assets and Absolute Return. Our resources portfolio, buoyed by appreciating energy prices, served as an important diversifier for the Long Term Pool.

The success of UVIMCO’s portfolio is best viewed through a long-term lens and against key benchmarks (Table 1). Over the past two decades, we have secured double-digit returns for our investors. Our twenty-year annualized return of 10.4% is well in excess of the 8.0% return required to preserve the purchasing power of the endowment. Public Equity generated an annualized return of 12.6%. Long/Short Equity generated an annualized return of 7.4%. Private Equity generated an annualized return of 16.0%. Real Assets generated an annualized return of 12.2%. Absolute Return generated an annualized return of 4.9%. Credit and Fixed Income generated annualized returns of 8.5% and 4.0%, respectively.

According to Wilshire Trust Universe Comparison Service (TUCS) data, UVIMCO consistently outperforms its institutional peers. Over the past twenty years, UVIMCO’s Long Term Pool had an annualized return of 10.4% compared to 7.0% for the policy portfolio and 7.4% for our median peer (Graph 5).

As we look ahead to fiscal year 2023, UVIMCO’s focus remains on partnering with the best external investment managers in the world on superb investment ideas to generate long-term, risk-adjusted returns for the University and associated organizations for generations.

Board Member Spotlight:

John Harris Jr.

JOHN B HARRIS JR.

Retired Senior Banker and Executive, Deutsche Bank

John Harris Jr. is a distinguished member of UVIMCO’s Board of Directors. Harris is a retired executive of Deutsche Bank, where he developed a track record of success in managing multiple businesses on five continents. Since leaving banking, Harris has committed his career to public service and has over forty years of experience as a nonprofit board member, officer, advisor, fundraiser, and volunteer in the education, social services, and civil rights fields.

You had a long and illustrious investment banking career with Deutsche Bank and Bankers Trust. How did those experiences shape your view of financial markets particularly during times of uncertainty, including this past fiscal year?

There is an old adage that says, “The only certainty is uncertainty.” It has been my experience that this is a useful way to view financial markets—especially so when geoeconomics and geopolitical forces are in play.

While we do not have the absolute ability to determine financial, economic, and political outcomes, we do have the ability to think in terms of the probability of outcomes, and to consider trade-off judgements, risk/return calculations, and cost/benefit analysis.

I encourage people to embrace the view that financial market outcomes cannot be certain. Thus, we should make decisions and take actions based on the probability of outcomes instead of the certainty of outcomes. This approach leads to better decision-making, better actions and often better outcomes.

Since joining UVIMCO’s Board in 2014, UVIMCO’s assets under management have nearly doubled. What do you attribute this growth to, and how would you best describe the Board’s role in this success?

Any story about UVIMCO’s success must start and end with its team. From the quality to the performance of the operations, risk, and manager selections teams, UVIMCO has an exceptional staff of highly skilled individuals who are at the core of UVIMCO’s sustained long-term success. UVIMCO attracts and inspires people who want to pursue best-in-class investing while supporting UVA’s pursuit of excellence in higher education. We are a team of people driven by both private-sector incentive and nonprofit-sector mission—a powerful combination for success.

UVIMCO’s Board of Directors plays an integral role in cultivating excellence in investing. Structurally, the Board strikes a balance between experience and new perspectives, as well as independence combined with representation of key UVA stakeholders. The Board’s culture is one of robust engagement that encourages honest debate, diversity of views, intellectual honesty, and transparency.

You have championed diversity, equity, and inclusion (DE&I) efforts at UVIMCO and across the investment industry. What kind of impact do you think UVIMCO can have, and why is DE&I so important to advance forward in this industry?

I was raised in segregated Richmond, Virginia, by two Historically Black College and University (HBCU) business school professors. From an early age, I observed the powerful impacts of economic opportunity and empowerment. Although the legal and political landscapes began to change during my childhood, economic and social inequities were often intractable roadblocks for my mother and father and the vast majority of African Americans.

DE&I is so important in the investment industry because it is economically advantageous. The industry is inextricably linked to economic drivers of wealth: jobs, businesses, and nonprofits, including institutions of higher learning such as UVA. Looking back at my parents’ generation of Black Virginians, it is clear to me that segregation resulted in huge economic costs for the Commonwealth and the nation. The failure of Virginia to fully utilize the talents of all of its citizens came at a heavy price that is still felt today.

Although legal segregation is no longer a barrier today, obstacles ranging from racial and gender bias to a nondiverse pipeline for qualified talent continue to define the industry. Accordingly, DE&I is an essential tool in the toolbox of remedies that must be used if we are truly committed to the American ideals of justice, equal opportunity, and excellence.

UVIMCO has demonstrated leadership in advancing DE&I initiatives. Recently, the Board enhanced its new-member selection process by significantly broadening its outreach beyond its traditional pipeline of potential Board candidates. The Board is committed to building a diversity of people, representation, competencies, experiences, and perspectives on the UVIMCO team and further aligning UVIMCO’s work with the University’s commitment to being both great and good.

Being Great and Good:

Impact Stories

An endowed gift is a powerful investment in the future of the University and its affiliated organizations. When invested in UVIMCO’s Long Term Pool, endowed funds serve as a sustainable source of funding professorships to recruit and retain distinguished faculty; scholarships and fellowships to support deserving students; lectureships to bring distinguished speakers to Grounds; library acquisitions; and academic prizes to recognize outstanding students and faculty. The University’s unrestricted endowment generates vital funding for operations and enables the University to respond to important needs as they arise.

UVIMCO’s expert management of the University’s endowment and long-term funds, as well as the funds of associated organizations, enables excellence and equity in all corners of the University and is demonstrated in the impact stories that follow.

JEFFERSON SCHOLARS FOUNDATION AWARDS RECORD NUMBER OF FULL SCHOLARSHIPS

Fifty-two outstanding high school seniors received full merit scholarships from the Jefferson Scholars Foundation this fall to pursue their undergraduate studies at the University of Virginia. The scholarships cover the full cost of attending UVA for four years, as well as a comprehensive enrichment program featuring foreign travel, career networking and counseling, and exclusive access to venture funding through the foundation’s Exploratory Fund. Scholarship recipients demonstrate excellence and potential in the areas of leadership, scholarship, and citizenship.

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Through [our] scholarship programs, we seek to identify individuals who are motivated to lead not by selfish ambition, but by a desire to make the world better for others. Ultimately, we aim to recruit well-rounded, community-minded leaders who are committed to making a positive impact on the University."
Jimmy Wright, President, Jefferson Scholars Foundation

Record Number of Grants Funded to Support Law School Students Working in Public Service

Supported by a record grant pool of $801,000, 167 UVA Law students worked in public service roles in summer 2022. These grants, funded by gifts from alumni and other donors, and invested in part by UVIMCO, are awarded to first- and second-year law students who have secured a public service position across a wide variety of institutions and areas, including federal and state court systems, public defense, prosecution, and nonprofit legal services.

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With the Law School funding 100% of baseline Public Service Summer Grants and additional funding coming through PILA+ grants, UVA Law students now have more options than ever for pursuing public service and judicial internships."
Annie Kim, Director, Program in Law and Public Service, UVA Law School

UVA Health System Invests in World’s First Ultrasound Cancer Center

In May 2022, leading physician researchers at UVA announced the launch of the Focused Ultrasound Cancer Immunotherapy Center, the first center of its kind dedicated to advancing revolutionary immunotherapeutic cancer treatments. The center is designed to capitalize on UVA’s proven achievements in innovative cancer therapies to better understand a patient’s immune response to cancers. Thanks to UVA’s initial investment of $8 million, three groundbreaking clinical trials are already underway, focusing on patients with metastatic and early-stage breast cancers.

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Our combined initial investment of $8 million will purchase state-of-the-art focused ultrasound devices, create new jobs to hire faculty and staff, and fund laboratory research studies and clinical trials."
Dr. K. Craig Kent, Chief Executive Officer, UVA Health

Investor

Responsibility

UVIMCO is dedicated to investor responsibility as an organization and as investors. Responsible investing is incorporated into UVIMCO’s investment strategy by our leadership team and staff. We consider all risks that could have an impact on the performance of UVIMCO’s portfolio, including environmental, social, and governance (ESG) risks. UVIMCO promotes ESG integration across its portfolio and with its investment managers and is committed to aligning with a net-zero future by 2050. Read more in UVIMCO’s Investor Responsibility Framework and Investor Responsibility Report.

Click on the images to learn more

ESG INTEGRATION

UVIMCO incorporates environmental, social, and governance integration in its investment process, while maintaining strong long-term returns for the University of Virginia and associated organizations.

NET-ZERO BY 2050

UVIMCO is committed to transitioning the University’s endowment and other investments in the portfolio to net-zero by 2050.

CLIMATE SOLUTIONS

UVIMCO will continue to invest in climate solutions that reduce greenhouse gas emissions in the real world. In 2022, UVIMCO invested with managers who are dedicated to investing in markets, technologies, and services that support the transition to a net-zero economy.

MANAGER ENGAGEMENT

UVIMCO engages with its investment managers on material ESG issues, including reducing greenhouse gas emissions, to help effect positive change in relevant industries.

Meet

the Team

UVIMCO Board of Directors

UVIMCO Leadership