The UNC Investment Fund, LLC (the “Fund”) is the commingled vehicle that invests the long-term assets of the University of North Carolina System, its constituent institutions and their affiliated endowments and foundations. UNC Management Company is the Fund’s investment manager with the Board of Directors (the “Board”) of The University of North Carolina at Chapel Hill Foundation Investment Fund, Inc., the Fund’s controlling member, responsible for the oversight and governance of the Fund.
Learn more about the Fund’s Board of Directors.
DOWNLOAD THE FUND’S ANNUAL REPORT FOR MORE INFORMATION:
- PRIMARY OBJECTIVE
Support the current and future needs of the Fund’s Member institutions and their affiliates by generating, in perpetuity, a predictable and stable stream of annual spending distributions while also preserving purchasing power (net of inflation) after accounting for spending distributions.
- SECONDARY OBJECTIVE
Achieve a rate of return, net of all fees and expenses, that exceeds the Fund’s primary benchmark, the Strategic Investment Policy Portfolio (“SIPP”).
We believe that asset allocation is the primary driver of long-term performance. The Fund’s asset allocation framework, as defined by the Strategic Investment Policy Portfolio (“SIPP”), is established by the Board and principally implemented through investments in external investment managers.
|Long / Short Equity||15%||10–20%|
|Energy & Natural Resources||6%||3–9%|
To help guide our efforts to meet the Fund’s investment objectives, our investment philosophy centers around three core principles:
- MAINTAIN A LONG-TERM PERSPECTIVE
By taking a long-term view, the Fund can benefit from inefficiencies that arise from the short-term focus of many market participants.
- PARTNER WITH BEST-IN-CLASS INVESTMENT MANAGERS
The Fund invests its assets with third-party investment managers. We are steadfast in our pursuit of exceptional investment managers with our research process taking us across the globe as we seek to partner with managers that possess highly specialized skills, an ability to think independently, and have a demonstrated track record of adding value.
- MANAGE RISK THROUGH DIVERSIFICATION
We strive to make the best investment decisions all of the time but also recognize the basic principle that investment returns are achieved by accepting the risk and uncertainty inherent in financial markets. Risk management is a core tenet woven throughout our investment process and diversification serves as a primary risk management tool. We believe that investing across asset classes, geographies, and investment managers positions the Fund to achieve long-term success by limiting drawdowns associated with poor market conditions and the inevitable periods when certain asset classes or individual investment managers within the portfolio fail to meet their long-term risk/return targets.
As of September 30, 2019
(1) Inflation (CPI) + 5.5%
(2) 70% MSCI All Country World Index (ACWI), 30% Bloomberg Barclays U.S. Aggregate Bond Index
(3) BNY Mellon Endowment & Foundation universe median return (gross)