Message from Endowment Committee Chair Frank Williamson

The UC Foundation investment portfolio had a market value of $186.4 million on June 30, 2021. Generous contributions from alumni and friends of the University and earnings on our investments have fueled strong growth in the endowment in the past year.

The investment objective of the UC Foundation portfolio is that the average annual growth in market value from investment results will outpace our spending rate of 4%, expenses of 1% and inflation (estimated at 1.9%), or about 7% in total. Over the 10 years ending June 30, 2021, the portfolio outperformed our objective, generating an annualized return of 7.8%. Over the last five years, the portfolio generated a return of 10.0%.

In the latest National Association of College and University Business Officers study as of June 30, 2020, the top quartile for 10-year return was 7.83%. The UC Foundation portfolio’s 10-year return of 7.8% was within close reach of the top quartile and above the median return of peer foundations (endowments between $101 million and $250 million), which was 7.2%.

Market conditions in recent years have caused us to shift the portfolio allocation toward venture capital and private equity and away from bonds. We have been guided in these decisions by an expert and dedicated Endowment Committee whose members are some of the best investment professionals in Chattanooga. I am grateful to work with them and be part of their work in support of UTC.

The purpose of the UC Foundation’s investment portfolio guides us in all we do. This past year, earnings from the endowment supported approximately 1,050 UTC student scholarships and over 75 faculty through professorships. It is an honor to support the hard work of these talented students and teachers.

Frank Williamson

Endowment Committee Chair of the University of Chattanooga Foundation, Inc.