Performance

 

Quarterly Performance Update (as of 3/31/2014)



UNC Investment Fund Strategic Investment Policy Portfolio ('SIPP')

The Fund is a broadly diversified portfolio with assets allocated in a manner that is intended to achieve the return objective of inflation plus 5.5%. The initial Strategic Target Percentages are provided below. Asset allocation guidelines reflect both the diversified profile of the portfolio and the need to emphasize equity-related investments to achieve the return objective. The actual asset allocation may temporarily fall outside of these guidelines based upon a determination by the Board that the allocation is appropriate under the circumstances.


Investment Objectives

Short Term

The short-term investment objective of the Fund is to earn a rate of return that exceeds the return of the SIPP by 150 basis points over a rolling three-year period.

Long Term

The long-term investment objectives of the Fund are (1) To preserve the real[1] purchasing power of the Fund, while providing a predictable, stable, and constant (in real terms) stream of earnings (2) To earn an average annual real total return[2] of at least 5.5% per year, net of all fees, including management advisory fees and custody charges, over rolling three, five and ten year periods.

UNC Investment Fund Performance




[1] A real return refers to a nominal return adjusted for price inflation, as follows: (1 + nominal rate)/(1 + inflation rate) = (1 + real rate).

[2] Real total return is the sum of capital appreciation (or depreciation) and current income in the form of dividends, interest, or rent adjusted for inflation as measured by the Consumer Price Index-W as published by the U.S. Department of Labor, Bureau of Labor Statistics.

[3] 70% MSCI All Country World Index, 30% Barclay Aggregate Bond Index


3100 Tower Blvd, Suit 800    Durham, NC 27707-7105    TEL 919-401-4100    FAX 919-401-4104
© 2014, UNC Management Company Inc.  : :  Designed by Micro Medic