Redefining Next

REDEFINING

NEXT ANNUAL REPORT Fiscal Year 2018

On the cover: Photo by Chris Radcliffe. UC Campus Recreation Center.

The UC Campus Recreation Center is located in the heart of UC’s Uptown West Campus. The CRC and its offerings represent more than a fitness location; it’s redefining the student experience as a place to grow and thrive. As students and the community evolve, classes, special events, camps and more shift to meet those needs. The CRC, opened in 2006, features housing, classrooms, restaurants and recreation space.

REDEFINING NEXT The University of Cincinnati Foundation ANNUAL REPORT Fiscal Year 2018

AT THE UNIVERSITY OF CINCINNATI AND UC HEALTH, NEXT MEANS BREAKING A PATH FOR A NEW GENERATION OF LEADERS AND AFFORDING OPPORTUNITIES TO BROADEN OUR WORLDVIEW. NEXT MEANS EXPANDING OUR CREATIVE POTENTIAL TO INNOVATE OUR APPROACH TO EDUCATION AND PATIENT CARE. NEXT MEANS SOLVING COMPLEX SOCIETAL PROBLEMS AND SAVING PEOPLE’S LIVES.

WE’RE NOT JUST ANTICIPATING THE FUTURE—WITH YOUR HELP, WE’RE ALREADY CHANGING ITS COURSE. TOGETHER, WE CAN REDEFINE NEXT FOR OUR REGION, NATION AND WORLD.

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A LETTER FROM PETER E. LANDGREN “What’s next?”

Have you ever asked yourself what has helped you define your next? Like all college graduates, I asked myself this very question when I was a student at this university’s College-Conservatory of Music. I had been invited to audition for a position with the Baltimore Symphony, but couldn’t afford to make the trip.

Through a donor’s generosity, I received $78 to cover some of the cost and take my audition, and it was that small sum of $78 that changed my life forever.

My life’s dream was to play French horn in a major symphony orchestra. That $78 allowed me to not only achieve that goal, but to forge a career as an arts educator, becoming a leader of my alma mater, and now, serving UC and UC Health through the UC Foundation.

With philanthropy comes new possibilities, and as you’ll read throughout these pages, your support of UC and UC Health is redirecting the future in ways we never thought possible, and allowing others to create their own next.

You’re cultivating diversity, granting scholarship opportunities and innovating how our faculty teach. You’re tackling student hunger, and ensuring that cancer ends here in Greater Cincinnati.

None of this is possible without you—your interest, your passion, your unwavering support.

Thank you for sharing in our commitment to redefining what’s next and reimagining the bestpossible future for our campus, community, nation and world.

Peter E. Landgren President, University of Cincinnati Foundation Vice President for University Advancement, University of Cincinnati THE UNIVERSITY OF CINCINNATI FOUNDATION ANNUAL REPORT FY18 | 5

A LETTER FROM W. TROY NEAT If you follow me on Twitter, you know that my handle is @bearcatroy—it’s a testament to my love for my alma mater.

This passion extends to my position as board chair of the UC Foundation, where I have a front-row seat to all of the great relationships that are the glue of our unique university and academic health care system.

I’ve also witnessed the connections the Foundation and Alumni Association staff make with alumni, donors, students and volunteers. These bonds lift up and enrich our shared vision for the future, which is guided by UC’s strategic direction, Next Lives Here.

When I reflect on the generosity of Bearcats like yourself, I think about the community you’re building and empowering through philanthropy. In aligning your passions with UC and UC Health, you’re supporting students, patients, research, facilities and the future. Philanthropy is our state of mind, and I’m pleased to share that our designated days of giving—UC Day of Giving and #GivingTuesday—inspired Bearcats from across the country to give in fiscal year 2018.

On behalf of the UC Foundation Board of Trustees, thank you for bending the future through your generosity. It’s a fantastic time to be a Bearcat!

W. Troy Neat Chair, University of Cincinnati Foundation Board of Trustees

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TABLE OF CONTENTS

IMPACT STORIES Personal stories highlight how UC and UC Health are Redefining Next.

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LEADERSHIP UC, UC Health and UC Foundation leadership.

YEAR AT A GLANCE Memorable moments at UC and UC Health from fiscal year 2018.

FUNDRAISING REPORT

INVESTMENT OVERVIEW

POINTS OF PRIDE

Fundraising report from fiscal year 2018.

The UC endowment and its performance illustrate the power of philanthropy.

Incredible things are happening at UC and UC Health.

WAYS TO GIVE There are many options to make your mark at UC and UC Health.

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“The world is changing at accelerated rates every day, and we need a new generation of leaders who can solve its challenges.

“Innovating how we think, learn, teach and lead allows our university to seize these opportunities to have a global impact. Together, we can redefine our future and show the world that Next Lives Here at the University of Cincinnati.”

–NEVILLE G. PINTO, PhD PRESIDENT, UNIVERSITY OF CINCINNATI

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“The promise of academic medicine at UC Health is lived each day in our drive to discover, refine and apply new knowledge to improve outcomes for our patients and their families—and ultimately save lives. The support of our community makes that promise tangible and immediate—it advances new research, creates stunning new environments for care and fosters visionary collaboration that can change the health outlook for our communities for generations.”

–RICHARD P. LOFGREN, MD, MPH, FACP PRESIDENT AND CEO, UC HEALTH

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REDEFINING

NEXT

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REDEFINING NEXT BY INVENTING TOMORROW Chara Hood is not easily discouraged. During a recent co-op with L’Oréal, the thirdyear chemical engineering student was asked to resolve why a machine wasn’t capping a shampoo bottle efficiently, a challenge she relished.

“I have a knack for looking at multiple perspectives of a problem and finding solutions,” she says. “That’s why I am drawn to engineering.”

The same determination that allowed her to conquer the shampoo cap propelled Hood to seek out UC’s Emerging Ethnic Engineers (E3), a program empowering underrepresented ethnic students in UC’s College of Engineering and Applied Science. Through E3, Hood found her best friends, connected with faculty and received a much-needed scholarship from the Marathon Petroleum Scholars program.

Marathon Petroleum, a Fortune 500 Company, has been providing E3 students with scholarship support, co-op placements and student opportunities since 2015.

As one of seven children, Hood is solely responsible for her education. She has an excellent academic record, but paying her bills is tough.

Even innate problem-solvers need help, and to date 34 students, including Hood, have received scholarships from Marathon; eight students have completed Marathon co-ops.

“The Marathon scholarship changed my life,” Hood says. “Without it, I would not have been able to stay in school.”

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REDEFINING NEXT BY OPENING DOORS After 55 years of marriage, Dr. Alvin Crawford and Alva Jean Crawford still make each other laugh. Together, they’ve attended college, raised a family, built successful careers. All of this is rooted in the love and lessons bestowed by their families.

The Memphis natives learned that lifting others was part of daily life. Taking this to heart, Dr. Crawford became a pediatric orthopedic surgeon; he is Professor Emeritus in Pediatrics and Orthopedic Surgery at UC’s College of Medicine and a UC Health physician. Mrs. Crawford is a retired high school educator.

“If someone helps you and you’re on the receiving end, you really never ever forget that,” Dr. Crawford says. “If you’re on the giving end, it just feels good.”

Because of their passion for supporting students with diverse backgrounds and financial need, as well as a mutual love for education and the arts, the Crawfords created two new scholarships—one at the College of Medicine, another at the College-Conservatory of Music.

“People are assured better health care, a better life and a better retirement if they go to college,” Mrs. Crawford says.

“I want people who can help students to realize they can make a difference.”

Dr. Alvin Crawford was conferred with an honorary doctoral degree at 2018 commencement. He is pictured with UC Trustee Margaret K. Valentine and President Pinto.

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REDEFINING NEXT BY SAVING LIVES At 19, Heidi Jark endured 40 rounds of radiation for Hodgkin’s lymphoma. She spent three months living alone in a hotel while receiving treatment in Rochester, Minnesota, 350 miles away from her parents’ farm where they were tending to planting season.

Thirty-four years later, as managing director and senior vice president of the Foundation Office at Fifth Third Bank, she played a role in the decision to give $10 million toward the Cincinnati Cancer Center’s effort to achieve a National Cancer Institute (NCI) designation.

“When you think of the impact any disease has and if we can do something to improve the quality of care for our own employees and citizens, why would we not do that?” she says. “Why would we not make the investment?”

The Cincinnati Cancer Center is a collaboration of UC, UC Health and Cincinnati Children’s Hospital Medical Center. NCI designation will attract more research funding, fuel economic growth and create better outcomes for cancer patients.

Jark credits her survival to research.

“To be able to bring more research and clinical trials here with NCI designation just opens the doors for so many more survivors. When you throw resources and great minds together, we’re all going to benefit.”

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REDEFINING NEXT BY SOLVING PROBLEMS NOW Daniel Cummins, UC’s assistant dean of students, wants to change students’ lives—but first he wants to feed them.

“Faculty and advisers were having conversations with students and saying, ‘You’re not doing well, what’s going on?’” Cummins says. “The students are saying, ‘I haven’t eaten in two days.’”

When the issue of food insecurity came to the attention of Cummins and campus leaders, they moved quickly. The Bearcat Pantry was established in fall 2017 and is led by students like Rachel Roseman (pictured at right). The Pantry has two campus locations, offering food, hygiene items and campus dining hall vouchers.

The Bearcat community has rallied behind this effort with food, volunteer hours and monetary donations. Funds raised during the first UC Day of Giving helped launch the UC Clermont Pantry.

Donor support allows for the purchase of fresh food, the ability to address specific dietary needs and new initiatives such as a Bearcat Pantry Career Closet.

“Bearcats are very generous,” Cummins says. “Once folks know, their generosity comes out.”

Daniel Cummins Assistant Dean of Students, University of Cincinnati 20 | REDEFINING NEXT

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REDEFINING NEXT BY BENDING THE FUTURE Drew and Wendy Boyd believe three of their passions—creativity, philanthropy and UC—are the perfect combination.

The Boyds moved to Cincinnati 24 years ago for Drew’s position with Johnson & Johnson.

He also became an adjunct professor at UC’s Carl H. Lindner College of Business and is now executive director of the Master of Science in Marketing program.

Drew and Wendy discussed how they could give students an edge in creativity, innovation, and subsequently, the job market.

The answer was supporting faculty.

“If the faculty are great, the students have a great experience, and they become great alumni,” Drew says.

Established in 2018, the Drew and Wendy Boyd Breakthrough in Innovative Teaching Excellence Award recognizes Lindner College faculty who challenge students to think differently. Elliott Manzon and David Rapien, who are enhancing marketing education through a creative curriculum and new technology, were the first recipients.

“When teachers add creative training to their curriculum, we’ll produce a better product,” Drew says. “We can get graduates walking out of here with the cognitive skills companies want.”

“This put our money where our hearts are,” Wendy says.

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UC, UC FOUNDATION & UC HEALTH LEADERSHIP UC & UC HEALTH LEADERS

CHAIR

Neville G. Pinto, PhD

W. Troy Neat

President, University of Cincinnati

Richard P. Lofgren, MD, MPH, FACP President & CEO, UC Health

UC FOUNDATION LEADERSHIP Peter E. Landgren

Ken V. Byers, Jr.

Joseph P. Judge

Cincinnati, OH

Phil D. Collins

Jerry C. Kathman

TREASURER

Patricia L. Klingbiel Connell

Ruthie S. Keefe

Thomas D. Freeman Cincinnati, OH

President, UC Foundation Vice President for University Advancement, UC

SECRETARY

Linda E. Bledsoe

West Chester, OH

Associate Vice President for Human Resources

Julie L. Engebrecht

Assistant Vice President for Communications and Marketing

Lynnette M. Heard

IMMEDIATE PAST CHAIR Robert L. Fealy

Cincinnati, OH Cincinnati, OH

Elmhurst, IL

Sean P. Connell Elmhurst, IL

Sally W. Cuni Cincinnati, OH

Todd C. DeGarmo Washington, DC

Dianne G. Dunkelman Cincinnati, OH

Elmhurst, IL

Brian E. Hall

Vice President & Chief Financial Officer

TRUSTEES

Carrie K. Hayden

Lynnette M. Heard

Mason, OH

Thomas D. Freeman

Executive Director of Foundation Board Relations

Jennifer L. Heisey

Vice President for Alumni Relations

Stephen A. Rosfeld

Vice President for Development

Carrie E. White

Shakila T. Ahmad Peter A. Alpaugh Cincinnati, OH

John B. Berding Cincinnati, OH

Elroy (El) E. Bourgraf Cincinnati, OH

Vice President for Advancement Services

Eric C. Broyles, Esq.

Michael D. Zenz

Robert R. Buck

Vice President for Development, Academic Health Center & UC Health 24 | REDEFINING NEXT

Ft. Washington, MD Naples, FL

Cleveland, OH

Steamboat Springs, CO

Stuart G. Hoffman, PhD Pittsburgh, PA

Kathryn A. Hollister Cincinnati, OH

Gyan Jha

Louisville, KY

Gary D. Johns Cincinnati, OH

Timothy E. Johnson, PhD Cincinnati, OH

Laurence F. Jones III Cincinnati, OH

Potomac, MD

Cincinnati, OH Cincinnati, OH

Barbara W. Kellar Cincinnati, OH

Robert J. King, Jr. Cleveland, OH

William H. Krul II Dayton, OH

Eva L. Maddox Chicago, IL

Rae A. Mang Needham, MA

Darrell D. Miller, Esq. Los Angeles, CA

Joffre P. Moine II Santa Barbara, CA

William B. Monnig Crestview Hills, KY

Shenan P. Murphy Cincinnati, OH

Russell C. Myers Cincinnati, OH

Jacqueline C. Neumann Cincinnati, OH

Cora K. Ogle, PhD Cincinnati, OH

James F. Orr III Cincinnati, OH

EX-OFFICIO TRUSTEES

James E. Blakeney

Doloris F. Learmonth, Esq.

Michael D. Valentine

Michael J. Paxton

Robert F. Ambach

Henry T. Brown

William E. Lower

Edward W. Wedbush

Ellen Rieveschl

Thomas D. Cassady

Jack E. Brown

Eva L. Maddox

Jeffrey P. Williams

Alvin F. Roehr, Jr.

Thomas D. Freeman

Otto M. Budig, Jr.

John M. Mang

Steven A. Wilson

Ryan M. Rybolt

Richard J. Harknett, PhD

Daniel P. Carmichael

Thomas E. Mischell

Jeffrey L. Wyler

James A. Schiff, PhD

Lynnette M. Heard

Thomas E. Dewey

Jerome P. Montopoli

Wilbert L. Ziegler

Michael T. Schueler

Sandra W. Heimann

David B. Dillon

Marjorie Motch

Anthony Zingale

Richard C. Seal

Peter E. Landgren

John S. Domaschko

Valerie L. Newell

Shimul A. Shah, MD

Richard P. Lofgren, MD

John B. Goering

H.C. “Buck” Niehoff

Tony L. Shipley

Neil J. MacKinnon, PhD

Nancy R. Hamant, EdD

Yvonne C. Robertson

Randall (Randy) E. Smith

Kristi A. Nelson, PhD

Donald C. Harrison, MD

James E. Schwab

John M. Tew, Jr., MD

Kenneth Petren, PhD

Robert A. Heimann

S. Jay Stewart

Greg A. Tipsord

Neville G. Pinto, PhD

Thomas H. Humes, Jr.

J. Clay Stinnett

Sandra S. Wiesmann

Gregory W. Rouan, MD

Marvin P. Kolodzik

Richard “Dick” E. Thornburgh

Naples, FL

Covington, KY

Cincinnati, OH Cincinnati, OH Cincinnati, OH

Maineville, OH Cincinnati, OH Cincinnati, OH Cincinnati, OH Cincinnati, OH Cincinnati, OH

Paradise Valley, AZ Bethesda, MD

Andi K. Wiot

Cincinnati, OH Cincinnati, OH Cincinnati, OH Cincinnati, OH

West Chester, OH Cincinnati, OH Cincinnati, OH Cincinnati, OH Cincinnati, OH Cincinnati, OH Cincinnati, OH Cincinnati, OH Cincinnati, OH

Dayton, OH

Weston, MA

Cincinnati, OH Cincinnati, OH Carmel, IN

Cincinnati, OH

Mission Hills, KS Covington, KY

Cincinnati, OH Cincinnati, OH Cincinnati, OH Cincinnati, OH Cincinnati, OH Cincinnati, OH

David M. Lance

Cincinnati, OH

TRUSTEES EMERITI

Gregory C. Wolf

Eugene R. Allspach

Louis H. Lauch, Jr.

Frank C. Woodside III, MD, JD

Clark E. Beck, Sr., PE, ScD

Jerry P. Leamon

Charlotte, NC

Cincinnati, OH

Bellaire, TX Dayton, OH

Cincinnati, OH Cincinnati, OH Cos Cob, CT

Cincinnati, OH Cincinnati, OH Chicago, IL

Needham, MA

Cincinnati, OH Naples, FL

Cincinnati, OH Cincinnati, OH

Cincinnati, OH

Los Angeles, CA New York, NY

Ft. Lauderdale, FL Cincinnati, OH

Ft. Mitchell, KY Palo Alto, CA

Denotes Herschede Society

Cincinnati, OH Cincinnati, OH

As of June 30, 2018

Mercer Island, WA Naples, FL

Bellevue, KY

Palm Beach, FL

Woodrow “Woody” H. Uible Cincinnati, OH

Myron E. Ullman III Montrose, CO

Margaret “Peg” K. Valentine Cincinnati, OH

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University of Cincinnati Alumni Association July 13, 2017 • Fifth Third Bank and Fifth Third Foundation give $10 million to support the Cincinnati Cancer Center and the effort to achieve National Cancer Institute designation.

UC Foundation August 22, 2017 • The Marge & Charles J. Schott Foundation announces a $3.13 million gift to the Trauma Center and Surgical Intensive Care Unit at the UC Medical Center and UC College of Medicine.

YEAR AT A GLANCE With the support of philanthropy, we are redefining next at UC and UC Health.

This social media timeline captures some of the memorable moments of fiscal year 2018.

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UC Foundation August 16, 2017 •

UC Foundation October 4, 2017 •

Peter Landgren is named president of the UC Foundation and vice president for advancement at UC.

The UC College of Medicine announces a $1.5 million gift to support the R. Bruce and Barbara Bracken Endowed Chair in Surgical Urology.

Walk Ahead for a Brain Tumor Cure October 13, 2017 • The UC Foundation announces five philanthropy award winners: Robert L. Fealy, Marvin P. Kolodzik, Mark A. Godsey, Jessica Brawand and Walk Ahead for a Brain Tumor Cure.

University of Cincinnati College of Allied Health Sciences October 20, 2017 • The inauguration of UC President Neville Pinto takes place during Homecoming weekend. He is the university’s 30th president.

UC Foundation October 24, 2017 • Robert “Bob” Fealy, who served 10 months as interim UC Foundation President, receives the UC President’s Award for Excellence.

University of Cincinnati Alumni Association November 28, 2017 • The Islamic Center of Greater Cincinnati gives $1 million to create the Inayat and Ishrat Malik Professorship in Islamic Studies within the McMicken College of Arts & Sciences at UC.

UC Foundation November 30, 2017 • The 2017 #GivingTuesday campaign is the most successful to date. More than 2,000 donors give $116,000 to UC and UC Health.

UC Foundation December 21, 2017 • Procter & Gamble joins the effort to earn National Cancer Institute designation with a $10 million gift to the Cincinnati Cancer Center.

Neville G. Pinto January 5, 2018 • The UC Alumni Association announces the recipients of its four signature awards: Marian A. Spencer, A&S ’42, Hon ’06; Russell C. “Rusty” Myers, Bus ’82; Jacqueline L. Bailey-Davis, CECH ’92 and Austin G. Allison, CEAS ’08.

University of Cincinnati Alumni Association February 9, 2018 • UC Blue Ash College’s 50-year anniversary coincides with the largest gift in its history. The estate of retired professor Judith Baughin provides nearly $400,000 to support two scholarships.

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Neville G. Pinto February 12, 2018 • The Farmer Family Foundation donates $10 million to the Cincinnati Cancer Center’s pursuit of National Cancer Institute designation.

University of Cincinnati Alumni Association February 20, 2018 • President Pinto kicks off UC’s new strategic direction, Next Lives Here.

UC Lindner College of Business March 2, 2018 • The new UC Carl H. Lindner College of Business hits a milestone with the placement of its final beam. The construction of this $120 million structure was made possible by the generosity of donors.

UC Foundation March 21, 2018 • UC’s College of Engineering and Applied Science is one of eight schools worldwide to receive a 3D metal printer from GE Additive.

UC Foundation April 2, 2018 • UC Health supports diversity scholarships in UC’s Academic Health Center with a $1.5 million commitment.

UC Health April 10, 2018 • Supporters of the UC Gardner Neuroscience Institute commemorate the installation of the last beam. The $60.5 million facility was made possible with the support of generous donors.

Neville G. Pinto April 13, 2018 •

UC Foundation May 8, 2018 •

The University of Cincinnati announces its Bicentennial activities at a kickoff event.

University of Cincinnati Alumni Association April 17, 2018 • The inaugural UC Day of Giving raises $240,599 in support of programs and initiatives at UC and UC Health.

The UC Foundation Board of Trustees elects five new members: William J. Davis, BBA ’91; Leigh Fox, MBA ’01; Jerry Fritz, BBA ’73; Stephen Kimpel, BBA ’90; and Andrea Zahumensky, BSIE ’00.

UC Foundation June 27, 2018 • Emeriti professors Richard & Laura Kretschmer endow a Native American children’s literature collection at UC Libraries.

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FUNDRAISING REPORT

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FISCAL YEAR 2018 COMMITMENTS*

By Fund Type

59.3+30.7+10G 70.5+14.3+10.02.72.4G 71+28.4+0.6G

$104,008,153 in Total Funds

By Purpose

CHAIRS & PROFESSORSHIPS 2.7% SCHOLARSHIPS & FELLOWSHIPS 10% FACILITY & EQUIPMENT 14.3%

UNRESTRICTED 2.4%

PHYSICAL PLANT 10%

ENDOWMENT 30.7%

PROGRAM ENHANCEMENTS 70.5%

CURRENT OPERATIONS 59.3%

By Source

GIFT-IN-KIND (Non-software) 0.6%

DEFERRED GIFTS 28.5%

NEW COMMITMENTS 70.9%

*Excludes UC Health contribution, non-government research fund, software gifts-in-kind, campaign-only gifts.

THE UNIVERSITY OF CINCINNATI FOUNDATION ANNUAL REPORT FY18 | 31

FINANCIAL HIGHLIGHTS UC FOUNDATION AND UC HEALTH FOUNDATION COMBINED* REVENUES

2018 TOTAL

2017 TOTAL

Contributions

76,450,224

72,110,627

University support

18,010,286

11,996,517

Fundraising fees

9,817,699

11,206,249

Investment gains, net

29,798,702

39,378,367

Other

2,489,308

1,757,564

TOTAL REVENUES

$136,566,219

$136,449,324

Distributions to University of Cincinnati

60,522,872

50,471,635

Operating expenses

25,181,877

26,561,165

UC Foundation endowment fee

4,755,942

5,073,849

TOTAL EXPENSES

$90,460,691

$82,106,649

Change in present value of annuities payable

784,529

457,435

TOTAL EXPENSES AND OTHER DEDUCTIONS

$91,245,220

$82,564,084

CHANGE IN NET ASSETS BEFORE ACQUISITION INCOME

$45,320,999

$53,885,240

EXPENSES

Excess of Fair Value of Net assets over consideration of the acquired entity

-

2,219,307

CHANGE IN NET ASSETS

$45,320,999

$56,104,547

NET ASSETS, BEGINNING OF YEAR

$519,243,173

$463,138,626

NET ASSETS, END OF YEAR

$564,564,172

$519,243,173

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ASSETS

2018 TOTAL

2017 TOTAL

Cash and cash equivalents

23,856,663

19,653,549

Pledges receivable, net of allowance

98,479,600

94,699,382

Investments

443,222,848

405,851,400

Beneficial interest in assets

16,544,386

13,029,897

Property and equipment

2,360,497

3,209,901

Other assets

3,136,435

3,736,320

TOTAL ASSETS

$587,600,429

$540,180,449

Accounts payable and accrued expenses

11,441,536

10,601,027

Agency payable

1,512,725

907,675

Trusts held for the benefit of others

1,799,437

1,455,514

Present value of annuities payable

6,823,623

6,619,239

Other liabilities

1,458,936

1,353,821

TOTAL LIABILITIES

$23,036,257

$20,937,276

$564,564,172

$519,243,173

LIABILITIES

NET ASSETS

TOTAL LIABILITIES AND NET ASSETS

$587,600,429

$540,180,449

*Unaudited

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INVESTMENT OVERVIEW

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A LETTER FROM UC’S CHIEF INVESTMENT OFFICER I’m pleased to report UC’s endowment is thriving! In 2018, it generated a +8.5 percent return; outperformed its risk-weighted benchmark, peers and inflation; and reached a new record at more than $1.37 billion. A flourishing endowment is wonderful news for UC—­endowments are a uniquely beneficial source of support for UC’s mission and an important advantage in the increasingly competitive world of higher education.

This success is the result of the 46 talented professionals and volunteers who apply their energy, passion and expertise into various stewardship roles with UC’s endowment funds. Each of these individuals takes very seriously their duty to protect and nurture the permanent capital entrusted to UC by our generous donors. The animating force behind UC’s 46 endowment stewards is maximizing the sustainable benefit our endowments provide to current and future UC students, faculty and researchers.

On the following pages, we present details of the endowment’s strong performance over the turbulent past decade. Success was achieved through stable stewardship and adherence to our core investment principles.

We are in a numbers business but ultimately our focus is on helping people—in our final section, we shine the spotlight on a single endowment fund to illustrate the incredible power of permanent capital to help UC students.

Karl Scheer Chief Investment Officer, University of Cincinnati

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INVESTMENT PERFORMANCE (as of June 30, 2018)

10.0%

8.0%

8.1% 7.2%

6.6%

6.4%

5.9%

6.0%

5.0% 4.0%

2.0%

2.2%

1.5%

1.5%

0.0%

5-Year UC

10-Year Global Benchmark

25-Year Inflation

Global Benchmark is comprised of 60 percent MSCI All-Country World Equity Index and 40 percent Bloomberg Barclays US Aggregate Bond Index. Inflation is the Consumer Price Index for All Urban Consumers (CPI-U).

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UC’S ENDOWMENT: SUCCESS THROUGH PATIENCE AND PRINCIPLES UC’s endowment investments generated considerable gains over the past decade during one of the toughest periods in investment markets since the Great Depression. Ten years ago, 2008 saw sharp stock market declines, waves of corporate bankruptcies and a crisis of confidence in the survival of the financial system. These events provided an effective stress test of investment organizations and UC’s endowment investment program passed with flying colors.

UC’s endowment outperformed benchmarks, peers and inflation; generated gains of $572 million; provided $670 million of scholarships, professorships and other support; and grew from just under $1.1 billion to nearly $1.4 billion. The secret to the university’s success: patiently adhering to UC’s fundamental investment principles. $366M $572M $1,100M Endowment as of July 1, 2008

Investment Gains

Gifts & Other Inflows

$670M Support for UC

ENDOWMENT ROLL-FORWARD 2008-2018

$1,367M Endowment as of June 30, 2018

UC’s endowment provided $670 million of support to UC and grew to $1.37 billion in the past decade.

LONG-TERM FOCUS The foundation of UC’s investment success is continuity in strategy, governance, culture and objectives. Maintaining long-term focus and an equity orientation through the crisis positioned UC’s endowment investment portfolio to generate +154 percent gains since the recovery began in early 2009.

DIVERSIFICATION A core principle of UC’s approach is maintaining a diversified mix of investments to control investment risk and position the portfolio to succeed in a variety of different market climates. UC carefully spreads capital across investment types (equities, bonds and alternative investments); geographies across the globe; and strategies that prosper during different economic regimes (robust growth, unstable markets, inflationary periods, etc.).

VALUE UC tilts investment exposures toward the most compellingly priced assets available at any given time in the market, which improves the portfolio’s stability and ensures UC’s endowments avoid investment fads. UC also seeks the best values in administering UC’s endowment pool and pursues fair fees with top investment managers.

THE UNIVERSITY OF CINCINNATI FOUNDATION ANNUAL REPORT FY18 | 37

THE POWER OF ENDOWMENT AND A FAMILY’S LEGACY MAGNIFYING A GIFT’S IMPACT

The Henry and Anna B. Krucker Memorial Scholarship Fund was set up in 1984 by Elsie and Rose Krucker to honor their parents with the generous gift of $1.6 million. The Krucker Fund’s mission is to provide “worthy and needy” students with scholarships to the UC College of Medicine and it has been a Elsie Krucker (pictured) and her runaway success. In 34 years, sister Rose both attended UC. The Cincinnatian, 1915 the Krucker Fund has provided more than $5.4 million in scholarships and its asset base has more than doubled from $1.6 million to more than $3.4 million today—protecting and growing its ability to provide scholarships for the foreseeable future.

Elsie and Rose multiplied the impact of their gift many times over by creating a perpetual endowment that spends a small amount every year and invests the remainder so it can grow and finance future gifts.

The Krucker Fund is commingled with 2,193 other endowment funds in UC’s A Pool, which gives it access to UC’s stewardship resources, including the combined expertise of the professionals in the UC Investment Office and on the UC/UCF Investment Committees, a mature and effective governance system, and key administrative resources. Commingling endowments in the A Pool also amplifies the support these funds provide to the university and its students by achieving significant administrative efficiencies and economies of scale to buy custody, consulting and other services “in bulk.”

UC’s efficient and equitable management of the A Pool helps unleash the remarkable power of endowments.

FY 2018 A Pool

Share Value 38 | REDEFINING NEXT

$75.28 Beginning Value

+

$5.75 Investment Gain

-

$3.34 Scholarship Spending

-

$.71 Operational Support

=

$76.98 Ending Value

Our enduring gratitude goes out to Elsie and Rose for honoring Henry and Anna. The Krucker family’s partnership and trust in UC enables it to control tuition costs, compete with other universities for top students, enhance the university’s financial independence and, most importantly, provide disadvantaged and deserving students the opportunity to attain one of the most coveted medical degrees in the world.

We welcome the chance to advance your personal philanthropic interests through UC or UC Health.

Creating even small opportunities can set an individual or community on a path that changes lives.

The Krucker Fund has grown from $1.6M to $3.4M

1984

2018

while giving away $5.4M in scholarships.

“Financial stress is an unfortunate reality of medical school for the majority of students.

Being a recipient of the Krucker Scholarship allowed me to fully direct my focus on learning how to take the best care of my future patients. When I see the scholarship listed on my financial aid statement each semester, I am reminded of what a blessing it is to be a UC medical student and am freshly motivated to work my hardest to honor the gift I have been given.”

Andrew Frankart,

Class of 2018, Henry and Anna B. Krucker Memorial Scholarship recipient

THE UNIVERSITY OF CINCINNATI FOUNDATION ANNUAL REPORT FY18 | 39

INCREDIBLE THINGS ARE HAPPENING AT UC AND UC HEALTH

POINTS OF PRIDE

2nd

CCM alumni rank second in Playbill’s “Most-Represented Colleges on Broadway.”

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Alumni Jason Kelce, BUS ’10 and Brent Celek, BUS ’07 were part of the 2018 Super Bowl champion team, the Philadelphia Eagles.

Jason Kelce

Brent Celek

UC’s newest resident hall has been named after civil rights activist and lifelong community servant Marian Spencer, A&S ’42, Hon ’06.

UC Health’s Trisha WiseDraper, PhD, COM ’08, MD COM ’10, is pioneering the use of immunotherapy in cancer patients while also training the next generation of physicians and studying cancer’s underlying mechanisms to develop newer and better treatments.

THE UNIVERSITY OF CINCINNATI FOUNDATION ANNUAL REPORT FY18 | 41

113% 6,500

students earned degrees of various levels in UC’s largest-ever spring commencement.

50.5%

of this year’s graduates were awarded degrees in the STEM areas of science, technology, engineering and math.

of these students were firstgeneration college students.

and

49 states

76 countries.

By comparison, the Class of 2017 had graduates from 51 countries.

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3.224

UC student-athletes’ cumulative gradepoint average for the Fall 2017 semester.

It was the 19th consecutive grading period our Bearcats have exceeded a 3.00 GPA.

16%

They hailed from

increase in students studying internationally since 2010.

Top 5%

UC Health’s West Chester Hospital ranked in top 5 percent of hospitals nationally for clinical outcomes (Healthgrades, 2018).

The distinction recognizes West Chester Hospital as being within the top five percent of nearly 4,500 hospitals nationwide for its clinical performance as measured by Healthgrades, the leading online resource for comprehensive information about physicians and hospitals.

56

students earned engineering degrees from UC and China’s Chongqing University as part of UC’s Joint Engineering Co-op Institute’s first graduating class.

THE UNIVERSITY OF CINCINNATI FOUNDATION ANNUAL REPORT FY18 | 43

WAYS TO GIVE

44 | REDEFINING NEXT

VISIT FOUNDATION.UC.EDU OR CALL THE UC FOUNDATION AT (513) 556-6781 TO LEARN MORE ABOUT HOW YOU CAN HELP REDEFINE NEXT FOR NOT ONLY UC AND UC HEALTH BUT FOR OUR REGION, NATION AND WORLD.

ENDOWMENTS

PLEDGES

MATCHING GIFTS

HONORARY OR MEMORIAL GIFTS

LIFE INSURANCE

CASH GIFTS

GIFT PLANS AND BEQUESTS

STOCKS, BONDS AND MUTUAL FUNDS

PERSONAL PROPERTY AND REAL ESTATE

The University of Cincinnati Foundation does not discriminate on the basis of disability, race, color, religion, national origin, ancestry, medical condition, genetic information, marital status, sex, age, sexual orientation, veteran status or gender identity and expression in its programs and activities. The complete Notice of Nondiscrimination can be found at uc.edu/about/policies/non-discrimination.

THE UNIVERSITY OF CINCINNATI FOUNDATION ANNUAL REPORT FY18 | 45

THE UNIVERSITY OF CINCINNATI FOUNDATION PO Box 19970 Cincinnati, OH 45219-0970 (513) 556-6781 | (888) 556-8889 foundation.uc.edu