UNE Foundation 2019 Report
The UNE Foundation is responsible for managing funds that have been donated to the University and making them available in accordance with donors’ wishes; for scholarships, research, and teaching and learning.
The Foundation discharges these functions through its Board of Directors. Funds are currently managed on the Foundation’s behalf by Russell Investments. The Foundation sets the strategic policies for funds management, oversees that management and considers and approves requests from the University to draw on the funds for appropriate purposes.
The Foundation benefits from the talent and experience of a Board of Directors, who among them have strong qualifications and experience in financial management and investment, accounting and auditing, risk management and corporate governance. Most directors are also UNE alumni, with a strong commitment to the university and its future.
The Foundation currently has over $23 million under management. It aims to achieve a return of at least CPI + 3.5 and continues to exceed this target, thus protecting the real value of funds while providing a perpetual income stream for the purposes of the university and donors.
Market conditions are volatile and the Foundation continues to monitor its position carefully. At the same time, the Foundation is looking to set a higher return target for the fund to enhance the benefits to the university from donor funds.
The Foundation is very conscious, as a recipient of donated funds, that it must invest prudently to preserve the corpus
of funds, while also achieving the best possible return. Donors can be assured that their funds are carefully managed to keep them available to the university in perpetuity while delivering an income stream towards the purposes of donors and the needs of the university.
Chair, UNE Foundation
UNE Foundation - Perpetual Benefit Fund (PBF)
Value as at 31 December 2019: $23.91 million
Objective: Growth of capital over time while allowing for a target payout rate of 3.5% each year
Return objective: Consumer Price Index +3.5% after fees and including franking credits
The PBF consists of donations, both endowed and nonendowed funds, where the corpus of funds is expected to be held and invested for 4 years or longer (including in many instances where the principal is expected to be held to perpetuity). The return objective and risk profile for the PBF reflect the desire to release sufficient cashflow to meet the University’s target payout ratio of 3.5% every year. The PBF’s objectives can be met only by allocating a substantial proportion of the portfolio to a diversified range of growth assets to ensure sufficient capital growth in the portfolio over time.
A smaller proportion of the portfolio is invested in more defensive assets that are less correlated with the returns
of growth assets to diversify the risk within the portfolio. As majority of the PBF is invested in growth assets, such as listed shares and property, the portfolio returns are most impacted by returns in these asset classes. 2019 was generally a strong year for all asset classes. Overall, the PBF achieved a return of 13.3% (after fees and including franking credits).
Text supplied by Russell Investments
The University of New England would like to thank the members of the UNE Foundation Board of Directors for their work in 2019 and we look forward to working with them in 2020.
- Mr Ross Beaney
- Mr Martin Dolan (Chair)
- Mr Bob McCarthy AM
- Ms Chanelle McEnallay
- Professor Bob Officer AM
- Ms Nicole Patterson
- Ms Marea Salisbury
- Mr David van Aanholt (UNE Council member)