University of Virginia Investment Management Company
ANNUAL REPORT 2021 HIGHLIGHTS During the year that ended June 30, 2021, investment markets generously rewarded all the central hallmarks of our investment strategy: active management, equity risk, growth, innovation, and a long time horizon. We’re very pleased for our shareholders by the unprecedented return of 49% but recognize that this is a single, highly unusual point in time. I am confident that UVIMCO and the University’s combined strength will help us steer the course ahead. We will seize the opportunities presented and navigate the risks together to ensure the continued prosperity of the University for future generations to come.” — Robert Durden, CFA Chief Executive Officer/Chief Investment Officer
Serving the University University of Virginia Investment Management Company (UVIMCO) provides investment management services to the University of Virginia and associated organizations to serve the University’s mission. UVIMCO’s primary objective is to maximize the long-term, inflation-adjusted returns commensurate with the risk tolerance of the University.
GRAPH 1 Investor Composition
22%
Long-Term Performance As of June 30, 2021, UVIMCO managed $14.5 billion in its Long Term Pool (Graph 1). UVIMCO’s long-term performance is critical to the success of the University and associated organizations. Over the last few decades, UVIMCO has generated remarkable returns for future generations of students, faculty, alumni, and patients. UVIMCO consistently outperforms the passive policy portfolio and its median peer according to TUCS All Master Trust Universe (Graph 2).
Long Term Pool
2%
52%
$14.5 BILLION
7%
17%
University of Virginia Endowment University Strategic Investment Fund University Central Bank University Other Long-Term Assets University-Associated Organizations
GRAPH 2 UVIMCO Long Term Pool Relative Performance Annualized as of June 30, 2021 18% 16%
15.8% 21%
14% 12%
12.1%
11.6%
10.6%
10.7% 10%
8.8%
8%
Short Term Pool $161.2 MILLION (External Funds)(1)
8.6% 7.4%
7.4%
6%
79%
4% 2% 0% 5 YEARS
Long Term Pool
10 YEARS
Policy Portfolio
20 YEARS
TUCS All Master Trust Universe Median
University Strategic Investment Fund University-Associated Organizations (1) The Long Term Pool’s cash portfolio invests in the Short Term Pool. The Short Term Pool market value reflected above excludes Long Term Pool assets.
1