Endowment

When donors establish or make a gift to the University of Vermont Foundation Endowment, they are funding current institutional priorities for UVM while also helping to ensure the long-term excellence of the University. The principal amount of each endowment gift must be preserved and invested, with only the income from these investments used to support present needs. Endowments provide a perpetual source of annual income to support scholarships, professorships and other support for the University.

The University of Vermont Foundation Endowment consists of individual donor-restricted or board-designated funds, which are invested over a long period or in perpetuity to generate income for the support of donor or foundation purposes. The endowment includes permanent endowments, quasi-endowments and, in the future, annuities and charitable trusts. The endowment is organized into various pools according to individual donor fund agreements. All figures below reflect FY16 (7/1/2015 to 6/30/2016).

The Long Term Pool

The Long Term Pool is the Foundation's primary investment pool and is used for all donor endowments unless otherwise stipulated. The Long Term Pool has a mix of assets including US Equity, Emerging Markets, Global Equity, Absolute Return, Hedged Equity, Inflation Hedge, and Venture Capital / Private Equity. Currently, all Long Term Pool assets are invested alongside the University of Vermont's endowment. The average total return for FY16 was a loss of 2.5%. There are 132 donor endowments and 32 board endowments in the Long Term Pool.

The Green Fund

The Green Fund is an alternative pool and, while diversified, the investments exclude fossil fuel and nuclear energy based investments. This pool originated late in FY14. The Green Fund consists of one donor endowment which will benefit the Rubenstein School of Environment and Natural Resources. The average total return for FY16 was a loss of 5.3%.

The Student-Managed Pool

The Student-Managed Pool is designed to provide students with an opportunity to make investment decisions with real funds as a learning activity. Loss of principal may occur. Investments began in mid-FY16. The Student-Managed Pool consists of one donor endowment called the Green Mountain Investment Fund which will benefit the Grossman School of Business.

UVMF Holdings, LLC

In FY16, UVMF Holdings, LLC was formed to hold separate investments. Currently, UVMF Holdings, LLC is comprised of one donor endowment benefiting The Robert Larner, M.D. College of Medicine with two separate investments (a partnership and a real estate property).

Trusts Held by Others

Trusts Held by Others are not managed by the Foundation. Nonetheless, donors have invested in the Foundation by establishing such third party trusts to exclusively benefit the Foundation. One donor endowment which benefits the College of Medicine is in a trust held by another organization.

Responsibility for overseeing investments rests with the Foundation's Board of Directors and its Finance and Investment Committee. Related policies are available in the Document Library.

UVM FOUNDATION ENDOWMENT NET ASSETS

ENDOWMENT NET ASSETS

FY16

Starting Net Assets 33,500,789
Earnings 158,808
Distributions (1,671,518)
Gifts 36,705,976
Gift Fees (420,011)
Other 454,033
Ending Net Assets 68,728,077

Following are several examples as well as an overview of endowments at the UVM Foundation: