The University of North Carolina Wilmington Endowment|My homework helper
Posted: January 31st, 2023
Additional information to address in the paper includes:
- Data presented in the form of numbers, graphs, and charts – utilize the Monte Carlo Illustration of Outflows;
- A justification of each investment recommendations you will make to the client;
- Support for your policy recommendation based on the principles of modern portfolio theory;
- Core allocation percentage targets and ranges; and
- Tactical allocation percentage ranges.
This paper should be a minimum of 500 words and supported with scholarly resources.
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Endowment Scenario
The University of North Carolina Wilmington Endowment
UNCW is a modest-size endowment of approximately $100 million with a significant amount of information available in the public domain.
The long-term annual real return objective is +5.5% (i.e. inflation plus 5.5%), net of covering reasonable and appropriate charges to administer fundraising.
The Endowment update presented to the UNCW Board of Trustees on 10/24/19 can be found here (that and a massive list of other resources can be found at the UNCW Endowment link shared above).
The annual spending policy is 4.5% plus a 1.25%/year endowment administrative fee.
Please review the latest endowment update in the context of the endowment’s spending, real return objectives, and administrate fee constraint. Recommend whether and what changes to the 12/31/19 asset class and allocation targets should be considered. Please include scholarly resources to support your recommendations.
SOLUTION
The endowment of the University of North Carolina Wilmington (UNCW) is a pool of investment funds, donated by individuals, corporations, and organizations, that is managed to generate income for the university. The income from the endowment is used to support various initiatives, such as student scholarships, faculty research, and campus improvements. The size of the endowment, as well as its investment performance, can have a significant impact on the university’s ability to achieve its goals. However, information on the size of the endowment is not publicly available.
An endowment scenario refers to a situation where a person, organization, or entity receives a permanent financial gift or donation, typically with the stipulation that the funds be invested and the earnings used to support a specific purpose such as funding operations, programs, research, scholarships, or capital projects. The endowment’s principal amount is typically preserved while the interest or investment earnings are used to support the designated purpose.
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