UC Endowment Gains $67 Million

The past year was a good one for the University of Cincinnati endowment, which surpassed the $1 billion mark and continued a three-year upward trend.

For the fiscal year ended June 30, 2013, said Karl Scheer, UC’s Chief Investment Officer, UC’s investments generated a gain of 12 percent. All of the investment portfolio's asset categories generated gains for the fiscal year, led by U.S. equity, international developed market equity, private equity, and absolute return investments. The Investment Portfolio's 2013 performance brings bringing its trailing three-year returns to 11.1 percent annualized.
 

“We’re extremely pleased with the Investment Portfolio’s performance over the past one-, three- and five-year periods,” Scheer said. “At a time when the University of Cincinnati is focused on keeping tuition affordable for its students and state support of higher institution is shrinking, protecting and growing the University of Cincinnati’s endowment capital is more important than ever.”

During the 2013 fiscal year, UC's total endowment increased in size by $67 million to $1.046 billion. This gain is the cumulative effect of investment gains of $108 million, received gifts of $15 million and distributions to UC departments totaling $56 million.

Scheer has posted the 2013 Endowment Report online with additional details on investment performance in addition to information on the history, purpose, and governance of UC's endowment.

“UC’s billion-dollar endowment gives the University a competitive advantage in continuing to attract strong students and professors without relying on the uncertain state budget process or annual fundraising,” Scheer said. “UC has taken its generous donors’ dollars and enhanced their impact by generating strong investment returns during uncertain and volatile markets. And while different colleges have different risk tolerances, it always feels good for UC to beat endowment leaders like Harvard, Princeton, and Cornell over short and longer time horizons.”

Over the three-year period ended June 30, 2013, Scheer said, UC’s investment portfolio generated +11.1 percent annualized gains. During this period, the endowment increased by $159 million, based on net investment gains of $283 million and gifts of $49 million, while providing the university with support of $173 million.

“Today, UC’s billion-dollar endowment provides uniquely independent, reliable support for UC’s mission by providing quarterly cash-flows to the University and UC Foundation that support a wide variety of scholarships, professorships, advancement efforts, and programs,” Scheer said.

Scheer, UC’s Chief Investment Officer, joined the University of Cincinnati in 2011 from Summer Hill, a Mason Ohio-based family office at which he co-managed a $1billion investment endowment-style investment program. Prior to joining Summer Hill, Scheer worked with Frank Russell in their Tacoma office before moving to San Francisco to join Russell’s dedicated private equity group, Pantheon Ventures, where Mr. Scheer focused on manager selection and portfolio construction using private equity funds. He earned a B.A. from Harvard University, where he was captain of the intercollegiate varsity swimming team and an NCAA Division I All-American. Karl is a native of Cincinnati, a trustee of the Cincinnati Nature Center, and a member of the investment committee of the Cincinnati Symphony Orchestra.