Through your overwhelming generosity, the University of Illinois System and its three altogether extraordinary universities each eclipsed their goals and have set the trajectory for an Illinois future that is beyond extraordinary.
The last fiscal year was momentous for the Foundation. In addition to posting impressive financials for Fiscal Year 2022, we closed out the most ambitious fund-raising campaign in Illinois history with unprecedented success.
We chose Beyond Extraordinary for the theme of the Foundation’s 87th Annual Meeting in October because it blends what we achieved throughout the university's campaigns with the promise of a future that knows no bounds. Together, we raised a staggering $3.6 billion for the Illinois System and its universities, capped off by $467.7 million in new business in FY 2022, the second-highest fiscal-year total in Foundation history, and the fifth-consecutive year new business eclipsed $400 million. Our gratefulness for your role in this success also knows no limits, and we will be forever thankful for your abounding support.
The With Illinois, IGNITE, and Reaching Stellar campaigns each exceeded their goals because you believe in the power of Illinois to
transform lives and serve society on a large scale and with excellence. Although our campaigns' success ultimately will be measured in numbers, they produced so much more than just dollars and cents. They created platforms for alumni, friends, and donors to think more, know more, and feel more about the University of Illinois, all of which will help the university move beyond extraordinary in the days, months, and years ahead.
This report shares a wealth of information about FY 2022 and the final tallies for our campaigns. We hope you find its contents beneficial and will take pride in knowing what your investments accomplished over the last fiscal year and during the campaigns.
Thank you again for everything you continue to do for the University of Illinois. We look forward to seeing you throughout the year and at the UIF’s 88th Annual Meeting next fall.
JAMES H. MOORE, JR. President/CEO
For the first time, University of Illinois Foundation Weekend was combined with Homecoming at the University of Illinois Urbana-Champaign.
The second week of October proved to be special and was certainly one for the record books. For the first time in history, the University of Illinois Foundation Weekend was combined with Homecoming at the University of Illinois Urbana-Champaign. The weekend also provided alumni and friends with an opportunity to gather in celebration of the closing of the With Illinois Campaign. The combination of all these wonderful events provided guests with a jam-packed agenda of festivities to enjoy through the week.
On the next two pages, please enjoy a selection of photos from just a few of the weekend events including Lightning Talks with Faculty, the Altgeld Showcase and tours, and the With Illinois Campaign Celebration.
To see more photos from the weekend, visit uif.uillinois.edu/AM2022 and with.illinois.edu/event
Whether you joined us in Urbana in October or you continue to support us from afar, please know we thank you and appreciate you. It is your passion and generosity that make the University of Illinois System beyond extraordinary.
The
"When we talk about the freedom of being gifted a scholarship, we not only talk about education, but everything that comes with the college experience that helps us grow into the people we are meant to be."
DIANA ANGHEL, UIUC, CLASS OF 2023
The University of Illinois Foundation held its first in-person business meeting in three years when it hosted more than 400 people at its 87th Annual Business Meeting at the Krannert Center for the Performing Arts in Urbana.
With the university’s Altogether Extraordinary fundraising initiative officially ending June 30, the meeting detailed not only the financials from Fiscal Year 2022 but also celebrated the conclusion of the most ambitious and successful set of fund-raising campaigns in University of Illinois history.
Centering on the theme of Beyond Extraordinary , UIF Board Chair Tony DiTommaso and President/CEO Jim Moore acknowledged and thanked the thousands of donors whose generosity allowed Illinois’s three universities to exceed their campaign goals. In raising more than $3.6 billion, donors have set the course for a shining future for the University of Illinois.
System President Tim Killeen also shared his gratitude and spoke of the impact philanthropic giving is making on students, faculty, staff, our state, nation, and the world. He also noted alumni's power in helping Illinois transform lives and serve society.
Chief Operating Officer and UIF Board Treasurer Christy Devocelle and Chief Investment Officer Travis Shore shared the financials from FY 2022 year as well as presented the state of the University of Illinois endowment. Among the highlights was more than $400 million in new business for the fifth consecutive year. The $467.7 million in new business was the second-highest total in Foundation history.
MARY ELLEN PENICOOK Governing Director, University of Illinois Foundation Board of Directors
ANNE MOSELEY Director of Engagement and Curator, Sangamon Experience Acting Director, Center for Lincoln Studies
The meeting concluded with four presenters explaining the impact of philanthropy on their lives. UIF Board Member Mary Ellen Penicook spoke about the subject from a donor’s perspective. UIS Director and Curator of the Sangamon Experience and Interim Director of the Center for Lincoln
Studies Anne Mosely shared her thoughts as the recipient of programmatic gifts. UIC Interim Chancellor Javier Reyes described the impact of philanthropy across a university, and UIUC Class of 2023 student Diana Anghel spoke about how receiving a scholarship changed her life.
Clockwise from top left: UIF COO Christy Devocelle and UIF CIO Travis Shore; UIUC student Diana Anghel (standing), Mary Ellen Penicook, Javier Reyes, and Anne Moseley; UIF President/CEO Jim Moore, UIUC Chancellor Robert Jones, UI System President Tim Killeen, UIS Chancellor Janet Gooch, and UIC Interim Chancellor Javier Reyes.
Alumni and friends contribute significantly and annually to the success of our universities in Urbana-Champaign, Chicago, and Springfield.
The Foundation posted $371.5 million in cash* gifts and $467.7 million in new business** in FY22—the fifth year running new business exceeded $400 million. This year’s new business figure is the second highest in history, second only to 2018 which recorded $498.5 million. Alumni and friends contributed $257.5 million of the new business total, illustrating their continued commitment and unwavering support for the University of Illinois.
The largest percentage of cash gifts reported in FY22— 74 percent or $275 million—was designated by donors as current use funds. These funds can make an impact almost immediately in the area of the donor’s choosing such as research, facilities, student support, academic programs, public service, or faculty support. Endowed funds, annuities, and life income funds combined for the remaining 26 percent of the cash total.
“Our donors’ belief in the power of our altogether extraordinary university system to transform lives and serve society,” said Timothy L. Killeen, president of the U of I System. “Our excellence and impact in research,
education, and economic development across the state, the nation, and the world continues to grow because of it.”
UIF President/CEO James H. Moore, Jr. said the network of more than 800,000 University of Illinois alumni and friends is incredibly powerful. “Our alumni and friends contribute significantly and annually to the success of our universities in Urbana-Champaign, Chicago, and Springfield. Their kind and generous support of education helps the University of Illinois go beyond extraordinary today, tomorrow, and long into the future.”
As of June 30, 2022, the University of Illinois Foundation active endowment value was reported as $2.51 billion. The FY22 preliminary return for the Foundation’s endowment portfolio was reported as negative 7.9 percent. The top performing asset class was private equity which shows a preliminary return of 20.1 percent and outperformed the policy benchmark return of 11.6 percent. Values and returns for the UI/UIF combined active endowment are being finalized and will be released by the end of the calendar year.
* The cash figure includes outright cash gifts, pledge payments, annuity/life income gifts, and estate distributions. ** New business includes new gifts, grants, pledges, and deferred commitments.
The University of Illinois System's comprehensive fundraising initiative received more than 1.2 million gifts from all 50 states and 93 countries.
The University of Illinois System’s comprehensive fundraising initiative launched with a lofty goal of $3.1 billion and three unique campaigns: With Illinois (UIUC), IGNITE (UIC), and Reaching Stellar (UIS). We are proud to say that collectively these campaigns raised an impressive $3.6 billion.
In remarks at the University of Illinois Foundation’s 87th Annual Business Meeting, Timothy L. Killeen, president of the UI System, reflected on the incredible success of the campaigns and said seeing them cross the finish line is truly extraordinary. “We owe a huge debt of gratitude to our donors. Their generosity was essential in achieving this major philanthropic milestone and reflects a heady combination of human determination and financial potency. We are incredibly fortunate to have both at work toward the noble pursuits of the UI System."
James H. Moore, Jr., president/CEO of the University of Illinois Foundation, said seeing the campaigns exceed expectations has been rewarding but not surprising considering the unwavering support, passion, and dedication that characterizes donors to the U of I. During the fundraising initiative, more than 1.2 million gifts were received from more than 239,585 donors who reside in all 50 states and in 93 countries.
“Each gift—whether $5 or $100 million— demonstrates the love and respect our donors hold for the University of Illinois,” said Moore. “The impact goes beyond just the dollars and cents. It is knowing that support for higher education and the University of Illinois will change the lives of our students, our communities, the nation, and the world.”
The culmination of the With Illinois campaign was celebrated during Homecoming Week, October 9-15, 2022, on the campus of the University of Illinois Urbana-Champaign. Thousands of alumni, friends, and donors returned to campus to share in the excitement and celebrate the innumerable ways philanthropy has helped transform the university.
In remarks at the University of Illinois Foundation’s 87th Annual Business Meeting on October 14, UIUC Chancellor Robert Jones said in 2017 there were many skeptics who didn’t think the campus could reach the audacious goal of $2.25 billion that was set for the With Illinois campaign.
“In some ways, I guess you can say the skeptics got it partially right,” said Jones. “We didn’t meet our $2.25 billion goal in five years. We exceeded it. In just four years. During the worst global health crisis in living memory.”
The With Illinois campaign closed with an incredible $2.7 billion raised, far surpassing the initial goal by 20 percent. The generosity of the UIUC alumni, friends, and partners will lead to new opportunities for students and will allow UIUC to thrive and flourish for generations to come.
To learn more about the With Illinois campaign's success, visit with.illinois.edu or contact the University of Illinois Office of Institutional Advancement at vcia@illinois.edu or (217) 333-9174.
With You. With Illinois.
When the With Illinois campaign was launched, the fundamental fundraising priorities fell under four main umbrellas. Thanks to thousands of donors, UIUC can provide funding to these critical areas and boldly go forward, breaking records for enrollment, raising the bar for research funding, and continuing its legacy of excellence.
PROPELLING BRIGHT MINDS. This illustrates the commitment and investment in the people at UIUC. Donor support of scholarship funds, named faculty positions, and department chairs enriches the educational experience and attracts the most promising scholars to our university.
A UNIVERSITY AT THE HEART OF ILLINOIS. UIUC is a growing space for impact. With the help of donors, UIUC added beautiful new buildings, stateof-the-art classroom spaces, game-changing new athletic facilities, and more. These spaces facilitate and grow impact in the sciences, humanities, arts, and athletics, just to name a few.
FINDING SOLUTIONS TO THE WORLD’S CHALLENGES. These grand challenges are undertaken with courage, dedication, and compassion. The faculty, staff, and students at UIUC are constantly in pursuit of a healthier, safer, and more productive world. Donor support of research and innovation helps them lead, even in the face of a global pandemic.
A UNIVERSITY OF DISTINCTION. Donor support of unrestricted funds, such as a college’s annual fund or the Chancellor’s Fund, allows UIUC to provide flexible and nimble financial support that responds to pressing or unexpected needs and promotes a culture of excellence.
The University of Illinois Chicago is uniquely positioned to lead the way. This was the university's realization seven years ago, when it became clear urban, public universities would be a major player in forging the future of education. In response, IGNITE: The Campaign for UIC was launched with its boldest goal ever: to raise $750 million to redefine student success, empower faculty, drive discovery, connect with communities and advance racial and social justice, and health equity.
Donors rallied around UIC's vision and trusted the power of UIC to transform lives. With history-making donor support, IGNITE surpassed its goal to raise more than $803.4 million. Supporters' generosity will continue transforming lives as UIC delivers on the campaign promises into the future.
Donor investment in UIC is contributing new knowledge to the world, addressing social inequities, and caring for the most vulnerable, while staying grounded in the principles of access, equity, and inclusion.
To learn more about the IGNITE campaign's success, visit ignite-success.uic.edu or contact the UIC Office of Advancement at advance@uic.edu or (312) 413-8272.
It all starts with a single spark.
IGNITE: The Campaign for UIC aimed to strengthen student success, empower faculty, drive discovery, and connect communities. Through IGNITE, UIC donors answered the call and joined UIC in envisioning a better path ahead with shared determination.
REDEFINING THE MODEL FOR STUDENT EXPERIENCE AND SUCCESS. The largest gift to IGNITE, and in UIC's history, was given to recognize and further UIC's success in educating students from chronically underserved communities. Campaign gifts also offer critical funding through scholarships and novel programs like UIC Business's Get to Graduation Fund. Donor support opens doors to lively new learning environments and goes directly to bringing a diverse population of leaders into the workforce.
CULTIVATING AND EMPOWERING FACULTY LEADERS. UIC faculty members inspire curious minds. Donor support helps UIC recruit more worldclass scholars who drive our standing as a premier research university. And, once they are at UIC, faculty are empowered by donor generosity to become the foremost in their fields, train engaged citizens, and embrace courageous inquiry.
DRIVING LIFE-CHANGING DISCOVERY. UIC is a global leader in promoting social equity in health care, education, and research because of donor support. Donors push bigger, bolder, and more critical work; ask more questions; tackle bigger problems; and seek knowledge in places others overlook. Donor generosity enables a new way of looking at the world and its mysteries, igniting new knowledge that improves the human condition.
STRENGTHENING CONNECTIONS TO COMMUNITIES. UIC embeds itself in neighborhoods and organizations around Chicago. Donor support powers deeper, more beneficial connections to our partners beyond our campus boundaries. It prepares students, faculty, and staff to enter communities, touch more people, increase care, and improve quality of life.
On September 15, 2022, the University of Illinois Springfield held an evening event to mark the success of the Reaching Stellar, the largest fundraising campaign in the university’s history. UIS celebrated the excellence achieved during the campaign and looked to the future—a future that is brighter because of donors and friends who participated in Reaching Stellar.
Reaching Stellar was launched during the tenure of Susan Koch, who is now chancellor emeritus. The campaign wound down under the leadership of interim Chancellor Karen Whitney. Current UIS Chancellor Janet Gooch, who took over as leader of UIS on July 1, 2022, credited her predecessors with the success of the campaign and said they both worked tirelessly to ensure its success. “The campaign raised millions more for scholarships so students can further their education and saw the opening of the Student Union in 2018, the first building constructed on campus with significant support from donors and student fees. We owe them so much for their dedication to UIS.”
The generosity of donors to UIS changes the lives of faculty, staff, and particularly the students, impacting each and every person. It also has the trickle-down effect of improving the campus community and the areas they call home.
To learn more about the Reaching Stellar campaign's success, please visit uis.edu/reachingstellar or contact the UIS Division of Advancement at advancement@uis.edu or (217) 206-6058.
The stars are aligned.
The Reaching Stellar campaign had five priority areas— Scholarships, Academic Excellence, the UIS Center for Lincoln Studies, “The Public Good,” and Facilities and Technology—all of which will continue to benefit from the generosity of donors. More than $8 million has been committed to more than 70 new scholarship funds that have already assisted close to 300 students to date.
SCHOLARSHIPS. Donor gifts to scholarships affirms the aspirations, energy, and diversity of UIS students. Scholarships of all sizes offer students the chance to obtain an education, build a career, and move on to shape society.
ACADEMIC EXCELLENCE. Donor support for named chairs and professorships, research opportunities, equipment, and centers is critical to the future of UIS. It empowers faculty and staff and enables them to achieve academic excellence.
CENTER FOR LINCOLN STUDIES. The dream of the Center for Lincoln Studies became a reality during the Reaching Stellar campaign. The Center is thriving as a national base for scholarship, teaching and public history about Lincoln’s life, leadership, and legacy.
THE PUBLIC GOOD. Supporting the Public Good through engagement, collaboration, and impact was not only a funding priority of Reaching Stellar but is a mission of UIS. A few of the ways UIS contributes is through the Illinois Innocence Project, the Brookens Library, NPR Illinois, and the UIS Volunteer and Civic Engagement Center, just to name a few.
FACILITIES AND TECHNOLOGY. Gifts that help create and better UIS’s facilities and technology help attract faculty and students to UIS, and once they are on campus, help them have a wonderful, enriching experience.
The new chief investment officer at the Foundation provides insight into what his team is building and its approach to investing.
My tenure as your chief investment officer officially began on April 1. I am often asked about joining the Foundation and accepting a role based in Chicago. After all, Nashville, where my family and I lived for the prior eight years, is widely viewed as one of the nation’s booming and most desirable places.
To these questions, my response is invariably the same: The opportunity and mission at the Foundation are compelling, but the people are what made the decision obvious. The Foundation’s Board of Directors, Investment Policy Committee, University of Illinois System leadership, Foundation employees, and many other stakeholders of the Foundation and our three universities have been incredibly supportive. President Tim Killeen often employs the phrase “excellence at scale,” a challenge our investment team accepts. Suffice it to say that we have high aspirations.
In this year’s update, I hope to provide insight into what we are building and how we approach investing. We will also cover the capital markets backdrop and provide a performance update for FY 2022.
Ownership of operating businesses that can effectively invest and internally compound capital through reinvestment is an excellent way to drive the growth of the endowment and generate resources for the Foundation’s mission to support the interests and welfare of the university. Like many other endowments, we will be equity-biased in our investment approach. We will opportunistically invest in other areas, including credit and real assets, but only where we see an opportunity to generate equity-like returns.
We strongly believe in the benefits of active management versus passive management, or indexing. We will primarily seek to partner with intellectually curious, likeminded external investment managers we believe to be competitively advantaged—or likely to be competitively advantaged in the future—in underwriting businesses, industries, and capital structures. We often seek to identify these external investment managers in the early stages of their life cycle, which allows for the negotiation of better alignments, terms, and structure of relationships and investment vehicles. As our conviction grows through working with these partners, our investment concentration will grow accordingly, so that our portfolio risk is concentrated in our highest conviction ideas. We also strongly believe in building a portfolio capable of performing across the duration of various types of business cycles, which demands balance and style diversification.
We source investment managers predominantly through a thesis-driven or targeted outbound approach. We seek to “fight unfair fights” by creating high-quality sourcing
filters that increase our probability of making successful decisions. Our Learning, Research, and Engagement team, which we aim to build over the next two years, will closely collaborate with the Investment Due Diligence and Monitoring team in sourcing investment ideas. In short, we firmly believe a more accretive investment approach is one in which our office will find the best investment opportunities rather than letting the opportunities find us. We use the term “flipping the funnel” internally to describe this sourcing approach.
Our early priorities, or Phase I, include the following:
• Engagement
• Recruiting
• Portfolio assessment and planning
• Investment sourcing and diligence
Engagement is rarely mentioned as a priority for university investment offices. For our team, this is a significant opportunity and point of emphasis. Aside from the opportunity to advance the endowment, it is also a lot of fun and personally rewarding. The university has over 800,000 living alumni. Many are leaders in their fields and world-class thinkers. Engagement within our alumni community is underway. Our efforts within our faculty and campus communities have been modest, but we will get there. Our efforts have just begun.
Recruiting has been more active. We are grateful to have Frank Robinson and Matt McGanity on board in senior investment positions. Jaime Davis has been with the Foundation since 2019 and leads the investment
1
3 May not sum due to rounding.
operations effort and will also assume oversight of our risk management practices.
Our portfolio assessment is largely complete. Necessary changes have been identified, and many have been completed with more in motion. With an outstanding core team, we are ready to aggressively execute over the next year.
Our last priority has been sourcing new investment ideas. With the leadership of our team in place, we have been able to leverage relationships and capitalize on dislocations presented by volatile markets—more on this topic later. We have been very active in public and private markets, primarily in growth-oriented areas most impacted by recent market volatility. Our forward pipeline opportunity is dense, making me excited for the future.
Constructing the portfolio will be a multi-year effort, an effort we are excited to be beginning and one where we have been given full support and backing by leading Foundation stakeholders and the Investment Policy Committee. To reiterate, the support and alignment have been tremendous.
For many universities, FY 2021 was the best of times. Many posted the best single-year investment returns in their history. From July 2021 to October 2021, it appeared we could be in for another year of historically high returns. Alas, the Federal Reserve interrupted the party. November began with a perfect week, with the S&P 500 Index posting new highs for five consecutive days. After Thanksgiving, U.S. equities declined meaningfully on fears of the Omicron variant, and Chair Jerome Powell declared “it’s probably a good time to retire” the word “transitory” as he described inflation to a senate panel. This marked the turning point for risky assets. By May 2022, 50% of NASDAQ stocks were down 45% or greater, with 33% of the Index down 70% or more. In the end, the S&P 500 Index returned -10.6%, and the MSCI All-Country World Index returned -15.8%, measured in U.S. dollars, for the fiscal year.
Typically, investors carry cash and government bonds to diversify portfolios of risky assets. In this regard, this time indeed was different. Interest rate-sensitive government bonds sold off markedly once the Federal Reserve got serious about raising interest rates, and quantitative easing transitioned to quantitative tightening. By some estimates, the first two quarters of 2022 were the worst total return period in the history of the U.S. bond market. However, it’s been even worse outside the United States. The Bloomberg U.S. Treasury Index declined 8.9% for the fiscal year, while the FTSE World Government Bond Index lost 16.8%.
Commodities were the only global asset class that produced gains during the year as prices for goods and services began to accelerate. When Russia invaded Ukraine, these price pressures accelerated the inflation problem, which had been gaining momentum in preceding quarters. In economist terms, inflation expectations became “unanchored,” which introduced a myriad of risks investors have not had to deal with for over a decade. The consensus now believes the Federal Reserve should have tightened policy and raised interest rates earlier. In hindsight, had Chair Powell’s renomination been handled more swiftly, perhaps interest rate hikes would have occurred earlier, and inflation expectations would have remained anchored. Whatever the case, and we will never know the counterfactual, we must navigate the market in front of us.
Despite the market direction in recent quarters, valuations are mixed. According to J.P. Morgan, the S&P 500 Index carries a 16.6x forward price/earnings multiple as of August 31, 2022. The 25-year average is 16.7x. Other measures— dividend yield, price/book, price/cash flow—range from slightly higher to slightly lower than their 25-year averages. Perhaps the key point of uncertainty is where corporate earnings will be in the next 12-18 months.
Outside the United States, questions abound. In recent weeks, I have heard the phrase “our currency, your problem” used multiple times to describe the dilemma faced by non-U.S. developed markets and emerging market central banks and investors. Inflationary pressures are mounting, and economic growth has generally been weaker. The U.S. dollar is approaching levels not seen in two decades. As a result, many central banks are forced to hike rates into weakness, which exacerbates the issue of slowing growth while inflation remains stubbornly high.
In private markets, valuations have yet to fully reflect the move in public markets. For the most part, activity has merely slowed, which delays recognition. This isn’t surprising or uncommon, but history suggests this will correct itself with time. We have seen pockets of opportunities in growth-oriented private markets where companies needing capital face the realities of public market valuations.
Leveraged buyout multiples remain elevated. High yield markets remain selectively accommodative, and leverage sits roughly in-line with the last five years. The caveat here is that deal volume is down significantly in 2022. While volume is low, purchase price multiples have increased to 12.2x EBITDA (earnings before interest, taxes, depreciation, and amortization) versus the 11.4x average over the last couple of years. The increase has come through greater equity contributions from sponsors, indicating that equity
investors should expect lower net returns. For comparison purposes, the 2007 peak was 9.7x, a level that was not eclipsed until 2014.
As I write this, markets are pricing a Fed Funds peak of 4.4% by April, with a decline in rates from that point. Headline inflation, which is more sensitive to food and gas prices, in the U.S. has likely peaked. However, the future trajectory and “stickiness” of core inflation, which excludes food and gas, remains unclear and debated.
What is clear is the 2014-2021 investing environment is over. “FAANG” stocks (Facebook, Apple, Amazon, Netflix, and Google), “TINA” (there is no alternative), and their more absurd COVID-era cousins (meme stocks, YOLO, HODL) are a thing of the past. The Federal Reserve has dramatically reduced rampant speculation and
gamification in financial markets. What is less clear is whether we are seeing the cyclical end of superior returns in U.S. equities, both public and private markets, relative to the rest of the world and factor contributions to returns among risky financial assets. As a result, we will be balanced in our risk exposure on a geographical and stylistic basis and focus on identifying the best partners and operating companies around the globe.
Extraordinary monetary and fiscal stimulus provided more than just stop-gap measures to a weak economic environment resulting from COVID-19 and the actions required to counteract the health threat. These measures proved to be rocket fuel for risk assets in 2020 and much of 2021. The subsequent giveback in returns seems to be a healthy and corrective return to expectation from these
EXHIBIT 3: ACTUAL FY 2022 VS. POLICY PORTFOLIO
As of June 30, 2022
ASSET ALLOCATION UIF ACTUAL CURRENT TARGET1
GLOBAL EQUITY 64.6% 63.0%
U.S. Equity 11.7% 14.0% Non-U.S. Developed Markets Equity 12.0% 12.0%
Emerging Markets Equity 8.4% 10.0%
Global Equity 15.9% 17.0% Private Equity2 16.5% 10.0%
GLOBAL DIVERSIFYING 15.3% 17.0%
Credit/Distressed/Absolute Return 15.3% 17.0%
MACRO RISK HEDGES 20.2% 20.0%
Global Rates3 4.5% 4.0%
Global Inflation-Linked Bonds 3.8% 4.0%
Real Estate 5.0% 6.0%
Natural Resources4 6.9% 6.0%
TOTAL 100.0% 100.0%
1 As affirmed by the Investment Policy Committee in June 2020.
2 Includes LBO, Mezzanine, M&A, Growth Equity, International, and Venture Capital.
3 Includes short duration liquidity assets resulting from portfolio and gift cash flows.
4 Includes energy (oil and gas), timber, and agriculture.
exceptional times. There have been few places to hide since the beginning of the market selloff in the fourth quarter of 2021. Commodity-related assets, typically the most volatile asset class, have proved to be a haven for investors. In 2021, growth and venture capital markets were
portfolio (-15.4%) by 740 basis points. On a longer-term basis, the pool has slightly exceeded the policy benchmark over three years, met over five years, but slightly lagged over a ten-year period.
The endowment portfolio delivered mixed performance across asset classes (as defined by the current policy portfolio). Seven of the 10 asset classes posted negative absolute returns. Private Equity, Real Estate, and Natural Resources, all of which are classified as private investments, posted strong fiscal years and were up 18.7%, 12.5%, and 10.1%, respectively. Despite negative absolute returns, non-U.S. Developed Markets Equity, Emerging Markets Equity, and Global Rates were the most significant contributors to relative performance versus their benchmarks. Non-U.S. Developed Markets Equity benefited from a strong performance from a hedged equity manager, and Emerging Markets benefited from an overweight to India. The largest detractors to relative performance were U.S. Equity and Natural Resources. U.S. Equities -30.2% return lagged the Russell 3000 return of -13.9%, driven by overweights to info-tech, biotech, and small caps. Natural Resources underperformed by 14.2%, struggling to keep pace with the Bloomberg Commodity Index return of 24.3%. Within fixed income, our global inflation-linked bonds returned -15.8%, failing to protect in an inflationary world. Inflation-linked bonds can be misunderstood assets and don’t always provide the desired protection they are theoretically intended to serve. We have exited this position and more properly allocated the proceeds to assets that provide better diversification benefits to our equity bias.
In the future, we will report asset allocation and performance using a different methodology. This new reporting structure will be, in our estimation, a more accurate representation of the fundamental risk profile of the endowment and will be more easily digestible by readers. We will distill the portfolio into the core risk drivers of the portfolio, something we call “beta factors”. Put simply, you should expect to see the portfolio reported simply by the dollar amount of risk we hold in the following asset classes: equity, credit, commodities, real estate, interest rates, and cash.
the desired destinations for investor capital. Thus, further reinforcing the need for a balanced portfolio approach.
UIF’s endowment pool was down -8.0% net of fees and expenses for the fiscal year ended June 30, 2022, and finished with a market value of $2,360 million. This lagged the policy portfolio return (-5.8%) by 220 basis points (see Exhibit 1) but outperformed a passive 60/40 global
We have made substantial progress so far, but acknowledge much work is to come. We have lofty goals. Excellence at scale is core to our philosophy and growing the endowment is crucial to supporting the objectives of the University. Our team is excited to accept the challenge, and we look forward to meeting many of you along the journey.
We have made substantial progress so far, but acknowledge much work is to come. We have lofty goals. Excellence at scale is core to our philosophy and growing the endowment is crucial to supporting the objectives of the University. Our team is excited to accept the challenge, and we look forward to meeting many of you along the journey.
Anthony G. DiTommaso ’74, MS ’76 Managing Partner, Ecvall, LLC
Richard C. Osborne MBA ’73
Senior Managing Director, Madison Industries
IMMEDIATE PAST CHAIR
Kay M. Schwichtenberg ’84 President & CEO, Central Life Sciences PRESIDENT/CEO
James H. Moore, Jr.
SECRETARY & LEGAL COUNSEL
Jennifer F. Cerasa
TREASURER & COO/CFO
Christine C. Devocelle MBA ’13
CHIEF INVESTMENT OFFICER
Travis W. Shore
ASSISTANT TREASURERS
Kelly L. Bennett ’04, MAS ‘05
Michelle S. Bolger MBA ’14
ASSISTANT SECRETARY Jacquline N. Schweighart ’03, EdM ’09
Shakeeb A. Alam ’97 Co-Founder & President, East Bridge Capital Management
Donald E. Bielinski ’71 Managing Partner, SMB Interim Management, LLC
Mark D. Coe ’84
Managing Member & Chief Investment Officer, Intrinsic Edge Capital Management, LLC
Alan D. Feldman ’74, MBA ’76 (Retired) Chairman, President & CEO, Midas, Inc.
Laura L. Fraley ’77, MS ’79 Principal, Greenway Family Office, LLC
Alejandra Garza ’88
Founder and Principal, AGG Consulting
Karen M. Golz ’76 (Retired) Global Vice Chair, Ernst & Young Global Limited
Mary Kay Haben ’77 (Retired) President, North America, William Wrigley Jr. Co.
Cynthia M. Helle ’85 Director, The Josselyn Center and Providence Englewood Charter School Foundation
Stuart L. Levenick ’76 (Retired) Group President, Caterpillar, Inc.
Leon J. Loichle MA ’71 (Retired) Global Personnel Development Manager, Ford Motor Company
Jean M. Manning ’72, MBA ’78, JD ’83 Emeritus Chief Counsel for Employment, United States Senate
A. Helen McGrath ’77, MS ’78 (Retired) Vice President, AT&T Inc.
Samuel Mendenhall ’88, JD ’91 Partner, Winston & Strawn, LLP
Saul J. Morse ’69, JD ’72 Attorney, Brown, Hay & Stephens, LLP
Deborah A. Paul, PhD MS ’79 (Retired) Biochemist/Director, Business Development & Licensing, Abbott Laboratories
Mary Ellen Penicook ’81, JD ’87 (Retired) Corporate Attorney & Assistant Secretary, Federal Signal Corporation
José L. Santillan ’80 (Retired) Senior Securities Compliance Examiner/Industry Expert, Division of Enforcement, U.S. Securities & Exchange Commission
Khawar M. Siddique ’94, MD ’98 CEO, Beverly Hills Spine Surgery, Inc.
Paul T. Tucker ’70, MS ’71, PhD ’75 (Retired) Corporate Vice President, Computer Sciences Corporation
Donald J. Edwards ’88
Chair, University of Illinois Board of Trustees; Chief Executive Officer, Flexpoint Ford LLC
Timothy L. Killeen President, University of Illinois System
Paul Ellinger
Vice President, Chief Financial Officer and Comptroller, University of Illinois System
James H. Moore, Jr. President/CEO, University of Illinois Foundation
James M. Benson ’68 Chairman, Benson Botsford, LLC
Gary K. Bielfeldt ’58, MS ’59 Managing Partner, Bielfeldt & Company, LLC
Henry B. Blackwell II ’52 (Retired) Counsel, Baker & Daniels, LLP
Doris K. Christopher ’67 Founder & Chairman, The Pampered Chef, Ltd.
Richard G. Cline ’57 Chairman, Hawthorne Investors, Inc.
James R. DeBord ’69, MS ’71, MD ’74 (Retired) Professor of Surgery, University of Illinois College of Medicine Peoria
Jane Phillips Donaldson ’65, MS ’67 Partner, Phillips Oppenheim
David J. Downey ’63, JD ’66
President, The Downey Group, Inc.
W. Robert Felker ’74 Partner, Gator Trading
Juanita F. Francis ’70 President, F2 Family Foundation
Louis A. Friedrich ’67 (Retired) Principal, Bernstein Global Wealth Management
John A. Georges ’51 (Retired) Chairman & CEO, International Paper Company
Phillip C. Goldstick ’53 (Retired) Chairman of the Board, G. Equity Investment Group, Ltd.
G. Stephen Irwin MD ’77 (Retired) President & Chairman, The Center for Outpatient Medicine
Mannie L. Jackson ’60 (Former) Chairman, Harlem Globetrotters
Gail Veasman Kellogg ’65 (Retired) Partner, Hewitt Associates
Shahid R. Khan ’71 President, Flex-N-Gate Corporation
Robert Klaus ’57 President, Klaus Companies
Gregory B. Lykins ’69 Vice Chairman, First Busey Corporation; Co-Founder and Partner, Armory Capital LLC
R. Eden Martin ’62 Of Counsel, Sidley Austin, LLP
William C. Merchantz ’79 (Retired) President & CEO, Lakeview Technology, Inc.
Steven L. Miller ’67 Chairman & President, SLM Discovery Ventures, Inc.
Roger L. Plummer ’64 President, Plummer & Associates Consulting
Gayl S. Pyatt ’64 (Retired) Attorney, Gayl Simonds Pyatt, Attorney at Law
Mark A. Pytosh ’86 President & CEO, CVR GP, LLC
Jane Hayes Rader ’54 (Retired) Commissioner, Illinois Human Rights Commission
Edwin A. Scharlau II ’66, MS ’68, PhD ’74 (Retired) Vice Chairman, Busey Bank
George T. Shapland ’55 President, Shapland Management Company
Michael T. Tokarz ’71, MBA ’73 Chairman, The Tokarz Group, LLC
Carl L. Vacketta ’63, JD ’65 (Retired) Senior Counsel, DLA Piper, LLP (US)
James H. Moore, Jr.
President/CEO
Barry Benson
Senior Vice President; Vice Chancellor for Advancement, UIUC
Jennifer F. Cerasa
Vice President and General Counsel
Richard H. Darnell, Jr.
Senior Vice President for Development
Christine C. Devocelle MBA ’13
Chief Operating Officer/CFO
Edward F. Ewald
Executive Vice President
Jeffrey D. Lorber
Senior Vice President; Vice Chancellor for Advancement, UIS
Jacquline N. Schweighart ’03, EdM ’09
Senior Vice President for Central Development Services
Travis W. Shore
Chief Investment Officer/Senior Vice President
Thomas F. Wamsley
Senior Vice President; Vice Chancellor for Advancement, UIC
Brooke E. Weisenbeck
Vice President for Presidential Development Initiatives
The University of Illinois Foundation, established in 1935, is an independent Illinois not-for-profit membership corporation dedicated to securing and administering private gifts for the University of Illinois System and its three universities. More than 150 Foundation professionals develop and support the vision and efforts of the advancement teams at each university. As the primary repository of private support to the University of Illinois System, the Foundation is committed to best practices, continuous improvement, quality service, upholding our fiduciary responsibility, and— most importantly—honoring donor intent.
CULTURE CODE:
Exemplify Integrity
Practice Empathy
Embrace Collaboration
Inspire Innovation Enable Impact
Learn more about the University of Illinois Foundation at uif.uillinois.edu
Long-time University of Illinois Foundation president and CEO Sidney Micek passed away in July, leaving an advancement legacy at the university that will not soon be forgotten. A friend to donors and a mentor to countless staff and advancement industry colleagues, Sid, as he was known to his co-workers and friends, served as the Foundation’s leader from 2000-2012.
During Sid’s tenure, the Foundation raised nearly $3 billion, most of that during the Brilliant Futures Campaign, including more than $341 million for scholarships, fellowships, and other forms of student support. More than 175 endowed chair and professorship funds were established across all three UI campuses during his time as president/CEO. The Siebel Center for Computer Science, the Business Instructional Facility, and the Alice Campbell Alumni Center on the Urbana-Champaign campus were also built during his tenure. One of Sid’s significant interests was identifying and developing top UIF and university-wide advancement talent to become the next generation of leaders. When he retired in 2012, friends of Sid’s established the Micek Fellows Fund to support his succession planning initiative. Since then, 14 advancement professionals have been named fellows, with a new cohort beginning every other year.
Sid’s impact on the University of Illinois and the Foundation is immeasurable. We will always be grateful for his years of dedicated service.
University of Illinois Foundation
Harker Hall, MC-386 1305 West Green Street Urbana, IL 61801 217.333.0810 | info@uif.uillinois.edu | uif.uillinois.edu