UNCW FY24 Endowment Report

ENDOWMENT REPORT July 1, 2023 – June 30, 2024

SOARING TOGETHER The University of North Carolina Wilmington celebrated the successful conclusion of its historic “Like No Other” multi-year campaign on June 30, 2024 — securing over $136 million in support of Seahawk students, faculty and staff, programs and facilities. This remarkable achievement underscores the Seahawk community’s shared commitment and collective vision to enhance the UNCW student experience today and into the future.

Over the nine-year period of the campaign — from 2015 to 2024 — the university’s endowment grew from $86 million to $169 million, reflecting the growing generosity and support of the Seahawk family.

Looking Ahead: A Bright Future for UNCW As UNCW looks to the future, our new strategic plan “Soar Higher” promises unparalleled opportunities, nationally prominent academic programs and unwavering community commitment — all to ensure graduates are well-prepared to meet the challenges of tomorrow.

Complementing the university’s commitment to academic and service excellence, a new university master plan will make significant strides in enhancing and modernizing campus infrastructure, elevating world-class operations and guiding consistent growth and development over the next ten years.

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UNCW Endowment Report FY 24

Already Soaring Higher: The Strategic Plan in Progress Just in the last year, UNCW installed a 9,500-gallon wave flume designed to support research initiatives that will advance the study of coastline evolution and disaster mitigation. Additionally, the Shoreline Sports Complex opened providing multi-purpose amenities and facilities to meet the health and wellness needs of the campus community.

The 2024-25 academic year marks the grand opening of Discovery Hall, connecting to Randall Hall and part of the newly named UNCW Library.

This new three-story, 80,000 square foot building meets and exceeds evolving learning needs with state-of-the-art facilities — including a podcasting studio, enhanced multimedia studio, data-visualization lab and a digital makerspace with virtual reality and 3-D capabilities. The project also included a renovation of Randall Hall, which continues to honor the legacy of former Wilmington College President William Madison Randall.

The opening of the renovated UNCW Library serves as a preview of what is on the horizon. Additional planned areas of growth include a campus welcome center, new residence halls, upgraded athletic facilities and academic building additions and expansions.

Thanks to the unparalleled support of its community of donors, who are genuinely like no other, UNCW is soaring toward an even brighter future.

In Seahawk spirit,

Eddie Stuart ’05M Vice Chancellor for University Advancement

THE UNCW ENDOWMENT The University of North Carolina Wilmington and the UNCW Foundation Inc. depend on endowment gifts to ensure UNCW’s students, faculty and programs will thrive in perpetuity. An endowment is a long-term investment that creates financial stability, allowing the university to plan using dependable and predictable sources of revenue. Moreover, an endowed gift offers donors an opportunity to connect a family name or loved one to an area of UNCW in which they have a special interest.

Endowment donors may make gifts to either an unrestricted endowment, which provides support for programs at the university’s discretion, or they may establish an agreement for a restricted endowment, which supports a specific purpose such as a scholarship, professorship, athletic or academic program.

This Annual Endowment Report provides an overview of what the endowment portfolio does for the university and serves as a financial summary of its investment and distribution activities for the past year.

A separate statement detailing information on a donor’s particular endowment(s) may also be enclosed. Additional information about UNCW’s endowment, including frequently asked questions and definition of terms, can be found at www.uncw.edu/endowmentreport.

FINANCIAL SUMMARY 2023-24

2022-23

$154,125,436

$156,246,678

Additions

4,295,455

4,573,349

Net Earnings

18,380,770

(121,042)

Distributions

(5,963,418)

(5,253,117)

Administrative Fees

(1,522,709)

(1,320,432)

Year-end Balance

$169,315,534

$154,125,436

as of June 30, 2024 Opening Balance

600 ENDOWED FUNDS

$169M ENDOWMENT UNCW Endowment Report FY 24

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A PILLAR OF EXCELLENCE The Endowment Fund continues to perform ahead of peer institutions and meet our primary objectives to include: •

Maintaining the inflation-adjusted purchasing power after costs and spending

•

Providing a stable source of liquidity and financial support for the university’s mission

•

Diversifying the fund’s exposure to all asset classes by hiring external managers

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UNC Investment Fund 14.2

CPI + Spend Rate

14 12.6

In 2024, Dr. Victoria Hansen was honored as the first Elwood and Mary Walker Endowed Professor in Accounting. For over 30 years, Elwood and Mary Walker have generously contributed their time, expertise and resources to support the Cameron School of Business.

11.2 10.2

Median University & Foundation Endowment (2)

9.8

10

9.7

9.4

9.3

8.7 Percent

Throughout Like No Other: The Campaign for UNCW professorships were a top priority for the Cameron School of Business. These prestigious positions enhance the UNCW academic experience by funding salaries, supporting research and allowing professors to pursue projects that benefit both students and the global workforce.

70% Equity / 30% Bond Portfolio (1)

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Photo of: Elwood and Mary Walker

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8.2 7.6

7.5

8.2 7.2

7.3 6.5

6

7.1

7.1

6.7

5.4

4

3.4 3.0

2

(1): 1, 3, 5, 10, 15 Years: Global 70/30 Portfolio - 70% MSCI All Country World Index / 30% Bloomberg Barclays- U.S. Aggregate Bond Index 20 Years: Domestic 70/30 Portfolio - 70% S&P 500 Index / 30% Bloomberg Barclays U.S. Aggregate Bond 1 Yr 3 Yrs 5 Yrs 10 Yrs 15 Yrs 20 Yrs Index Annualized Rate of Return (2): BNY Mellon Endowment & Foundation Universe - 105 portfolios are represented for the year ended June 30, 2024

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UNCW Endowment Report FY 24

STUDENT BENEFITS

For the past three years, the Mu-Zeta chapter of the Kappa Sigma fraternity at UNCW has hosted a concert to support local veterans’ organizations. In 2024, they enhanced their support by partnering with the university to create the Military Hero’s Endowment Fund, which provides scholarships for veterans.

This fund honors veteran service and aligns with the fraternity’s values of community outreach and brotherhood. UNCW has over 2,000 militaryaffiliated students and is the only university with a building named Veterans Hall.

PORTFOLIO MANAGEMENT AND ASSET POOL ALLOCATION The Endowment Fund is governed by a nine-member, university-appointed board whose primary role is to oversee the allocation of the Endowment Fund’s portfolio among asset classes and investment vehicles and to monitor performance.

UNCW utilizes the management services of UNC Management Company (www.uncmc.unc.edu) for substantially all of its assets. The fund is subject to the UNC Policy for Endowment established by the UNC Board of Governors and is subject to an annual review by State of North Carolina auditors.

A unitized endowment pool allows multiple endowments to invest in the same pool of assets and has mechanics similar to that of a mutual fund.

Long Biased Equity

8.0%

3.5%

1.0% 25.6%

Long/Short equity Diversifying Strategies Fixed Income Private Equity Real Estate

32.4% 14.9%

Energy & Natural Resources Cash 5.5%

9.1%

UNCW Endowment Report FY 24

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SPENDING POLICY AND DISTRIBUTION Annually, the Endowment Board and the Investment Committee of the UNCW Foundation Board review the spending policy payout for the upcoming fiscal year (July 1 through June 30). These boards have approved a 4.5 percent annual spending rate since Fiscal Year 2013.

Spending rates for individually named endowment funds are determined by calculating 4.5 percent of the pool’s average market value at June 30 for the previous three years. That value is then divided by the pool’s total units. This spending rate per unit is then applied to the ending units of each fund and serves as the next fiscal year’s distribution.

DISTRIBUTIONS TO UNCW BY SPENDING PURPOSE 2023-24

2022-23

$2,788,030

$2,480,635

921,372

789,022

1,190,622

1,019,407

Facilities

329,684

297,535

Public Service

284,598

288,104

General Support

434,010

391,695

$5,948,316

$5,266,398

Scholarships Academic Support Professorships

A DIVERSIFIED PORTFOLIO UNCW has a strong tradition of providing hands-on learning opportunities to enhance the Seahawk student experience — including undergraduate research, service learning, internships and study abroad experiences. Global learning opportunities help students effectively interact with our connected world and understand different perspectives. The Seahawk International Impact Award, established in 2024, gives students the opportunity to address global health issues and social change. The first award recipient is helping immigrants by teaching English through the Cape Fear Literacy Council.

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UNCW Endowment Report FY 24