A Message
from the CEO/CIO
01
ANNUAL REPORT
2025-2026
UVIMCO’s mission is to generate exemplary long-term returns that strengthen the University of Virginia across generations. In fiscal year 2026, the Long Term Pool (LTP) returned 27.0%, generating over $4 billion in investment gains and providing over $900 million in distributions for the University and its associated organizations. These resources help support the people and programs at the heart of UVA’s mission—from scholarships and faculty excellence to groundbreaking research and patient care, including the student achievement, pioneering research, and academic leadership highlighted in this report.
While we are pleased with this fiscal year, we are even more pleased with our long-term results. The LTP has returned 12.0% annualized over ten years and 10.2% over twenty years, exceeding both the approximately 8% return required to preserve the endowment’s purchasing power after spending distributions and the passive policy benchmark. We are proud of this record and focused on extending it for the generations of students, faculty, and patients to come.
Fiscal year 2026 gains were broad-based, with our equity and diversifying strategies both outperforming their respective benchmarks.
Artificial intelligence (AI) was a material theme, contributing to gains across our public and private investments. We also benefited from strong manager performance in areas beyond AI, including biotechnology and real assets. Overall, this year’s results reflect the cumulative impact of multi-year portfolio initiatives and strong execution by the UVIMCO team and our external managers.
The public equity market’s recent run has been historically strong. The MSCI All Country World Index returned 23.7% in fiscal year 2026 and has now compounded at 19.7% annually over the past three years. We recognize that returns of this magnitude are rare by historical standards, and we hold measured expectations for the years ahead. As long-term investors, we do not attempt to predict the short-term path of markets.
Regardless of the direction markets take, our day-to-day work will not change. We will stay focused on making great investment decisions, on the organizational excellence that supports them, and on getting better at both. We are grateful for the service of our Board and for the trust of the University and our investment partners, and we remain committed to providing UVA with the financial strength to pursue its mission in perpetuity.
Serving
the University
02
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. In 2026, the University remained the no. 4 public school in the United States and advanced to the no. 2 public school for best value, according to U.S. News & World Report.
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.
UVIMCO invests the endowment and other long-term funds of the University and associated organizations in its Long Term Pool (LTP) with the primary objective of maximizing its long-term, inflation-adjusted returns commensurate with the risk level of the University. Over the past decade, UVIMCO’s active management of the LTP has generated significant value above its passive policy benchmark.
As of June 30, 2026, UVIMCO’s assets under management were $18.8 billion in the LTP and $103.8 million in the Short Term Pool (Graph 1). Within UVIMCO’s LTP, $9.6 billion represents the Rector and Visitors’ endowment, $2.3 billion represents the University’s Strategic Investment Fund, $2.5 billion represents other long-term assets of the University, and $4.4 billion represents assets held by University-associated organizations, 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 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 enable some of the key initiatives that advance this important and ambitious goal.
UVA Earns “New Ivy” from Forbes for the Third Year READ MORE+
UVA Law Remains No. 4 READ MORE+
Win, Raise Trophy, Repeat: Banner Year for UVA Sports READ MORE+
UVA’s 56th Rhodes Scholar’s Journey READ MORE+
UVA Health Medical Center No. 1 in Virginia READ MORE+
Since 2023, UVIMCO’s assets under management have grown from $13.6 billion to $18.8 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 stewardship of the endowment is especially critical at a time when other revenue sources are under strain. For more than a decade, endowment distributions have contributed more to the University’s academic budget than state appropriations (Graph 3). This trend heightens the importance of generating strong, long-term investment returns to sustain the University’s excellence and preserve its leadership among the nation’s top universities.
A Legacy of Leadership
After twenty-three years of dedicated service to the University’s endowment, Kristina Alimard retired at the end of June 2026. As UVIMCO’s chief operating officer, Kristina provided strategic leadership and operational oversight that helped grow the Long Term Pool from $2 billion to over $18 billion during her tenure. She also played a pivotal role in guiding UVIMCO through defining moments in its history, including its establishment as an independent firm, the 2008 financial crisis, and a global pandemic. We are deeply grateful for Kristina’s many contributions and lasting impact on both UVIMCO and the University.
To learn more about Kristina’s journey at UVIMCO, check out the Q+A with her in our 2022 Annual Report. READ MORE+
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
Performance
03
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.
Our 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 proven track record of partnering with world-class investment managers who have demonstrated the ability to generate alpha and outperform the passive policy portfolio. 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 LTP over the past decade, with shifts in recent years primarily due to relative performance.
Fiscal year 2026 was another strong year for global equity markets. The MSCI All Country World Index (ACWI) advanced 23.7%, building on the robust returns of recent years. Market performance was broadly positive across regions, although results varied considerably by country, sector, and market capitalization. Markets also had to contend with renewed geopolitical volatility due to hostilities between the United States, Israel, and Iran resuming in late February.
Domestic equities generated attractive returns but slightly lagged their global counterparts, with the S&P 500 climbing 22.3%. S&P 500 leadership rotated heavily from the “Magnificent 7” to large-cap semiconductor companies. The Magnificent 7 rose 20.7%, well behind the Nasdaq-100’s return of 34.4%. International equities also saw strong gains but experienced significant dispersion. Developed markets outside the U.S. (+21.0%) lagged the global index, while emerging markets (+43.5%) were among the strongest performers.
Public market exits also showed signs of revitalization during the fiscal year. SpaceX completed the largest IPO on record in June, while several other venture-backed companies accessed the public markets as well. OpenAI and Anthropic both filed confidentially, setting the stage for two more large IPOs. M&A activity was driven by AI infrastructure and energy transactions as strategic buyers pursued scale. The recovery remained uneven, however, with quarterly M&A deal counts falling to a six-year low even as cumulative deal values reached all-time highs.
The 10-year U.S. Treasury yield rose 24 basis points during the fiscal year to 4.47%. Longer-term yields remained elevated despite falling short-term rates, reflecting continued uncertainty around inflation. The blended Bloomberg U.S. Treasury Bond Index returned 3.1%, with TIPS gaining 3.4% and nominal Treasuries returning 2.7%.
Against this market backdrop, UVIMCO’s LTP returned 27.0% in fiscal year 2026, outpacing the policy benchmark's 18.3% gain by 870 basis points. Fiscal year 2026 gains were broad-based, with both our equity and diversifying strategies outperforming their respective benchmarks. Standout contributors included Long/Short Equity (+76.4%), Private Equity (+33.1%) and Real Assets (+20.0%). Artificial intelligence was a material theme, contributing to gains across both public and private investments. UVIMCO also benefited from strong manager performance in areas beyond AI, including biotechnology and real assets. Overall, this year’s results reflect the cumulative impact of multi-year portfolio initiatives and strong execution by the UVIMCO team and its external managers.
The public equity market’s recent run has been historically strong. The MSCI ACWI returned 23.7% in fiscal 2026 and has now compounded at 19.7% annually over the past three years. We recognize that returns of this magnitude are rare by historical standards, and we hold measured expectations for the years ahead. As long-term investors, we do not attempt to predict the short-term path of markets.
UVIMCO’s long-term results are strong. The LTP has returned 12.0% annualized over ten years and 10.2% over twenty years, exceeding both the approximately 8% return required to preserve the endowment’s purchasing power and the passive policy benchmark (Table 1). 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 (+10.2%) has far exceeded the 7.3% garnered by median peers (Graph 5), according to the Wilshire Trust Universe Comparison Service (TUCS).
Being Great & Good:
Impact Stories
04
An endowed gift is a powerful investment in the future of the University and both directly and indirectly touches all corners of the University. When invested in UVIMCO’s Long Term Pool, endowed funds serve as a sustainable source of funding for 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.
UVA STUDENTS WIN NASA LUNAR ROBOTICS COMPETITION
A team of twenty-two University of Virginia students won the top prize at NASA’s 2026 Lunabotics Challenge after designing and building a robot intended to help future astronauts work and build on the moon. The student-run Mechatronics and Robotics Society, or MARS, competed against teams from across the country in the annual event, which challenges college students to create robots capable of digging and transporting lunar soil.
UVA PROFESSOR NAMED INFLUENTIAL PERSON IN AI
University of Virginia economist Anton Korinek has been named to Time’s third annual list recognizing the one hundred most influential people in artificial intelligence. Korinek is one of the leading figures exploring the rapidly evolving economic impact of AI on the world and the challenges inherent in harnessing its potential, while preparing for the risks it may pose.
BICENTENNIAL SCHOLARSHIP HELPS UVA STUDENT THRIVE
Joycelyn Osei’s (College ’26) path to UVA wasn’t an easy one, and she is quick to share the academic struggles she had in middle school and early high school. Even though her goal was to go to a top university, she had no idea how she’d get there. But her hard work and determination, together with her community and the encouragement and programmatic and tutoring support of her parents helped her graduate at the top of her high school class. At UVA, the Lemuel E. and Sandra Wicks Lewis Bicentennial Scholarship helped her achieve even more.
UVA RESEARCHERS DISCOVER ALZHEIMER’S CURE CLUES
Few moments are more heartbreaking for families of Alzheimer’s disease patients than when a loved one no longer recognizes them. New research from the University of Virginia School of Medicine may reveal why that happens and offer hope for prevention.
UVA’s Harald Sontheimer, graduate student Lata Chaunsali, and their colleagues found that when protective structures around brain cells break down, people may lose the ability to recognize loved ones. In lab studies, keeping these structures intact helped mice remember one another.
Investor
Responsibility
05
UVIMCO’s Investor Responsibility page outlines the significant progress made toward goals highlighted in our Investor Responsibility Framework. We believe that consideration of responsible investment practices supports our mission to deliver long-term financial results for the University.
Meet
the Team
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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.
UVIMCO Leadership
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, service, excellence, and passion. We strive for UVIMCO to be the preeminent university endowment in the world 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.
