UCSF Foundation Investment Company Update
By David Harkins, founding president and CIO
In fiscal year 2021 UCSF's endowment posted its best single-year performance to date, returning 33.2%. These strong returns and the generous gifts of our donors helped the endowment end the year $760 million larger, surpassing $2.75 billion, and grew the endowment's payout to the university to $101 million, nearly double the payout from just five years prior.
The endowment compounded at 8.5% annualized over the past 10 years, steadily increasing the payout to the UCSF physicians, researchers, and caregivers who depend on the endowment's continuous revenue to conduct world-class research and provide care for patients. The endowment's returns have well surpassed the long-term goal of meeting the payout of 4.75%, exceeding inflation and growing the principal.
The endowment is divided into two pools with one objective: protecting and growing the endowment to support UCSF’s mission. The UCSF Foundation Investment Company manages the Foundation Endowment Pool, which comprises 48 percent of the endowment. The other 52 percent is managed within the UC Regents General Endowment Pool. Each Pool has a long-term investment approach aimed at preserving purchasing power for successive generations while ensuring payout for the University’s immediate needs.
Investment Performance ending June 30, 2021
The following chart illustrates returns received and the benchmarks used to evaluate performance by the UCSF Foundation and the UC Regents.
The current gross payout rate for endowments for funds managed by the UC Regents is 4.75 percent of the 60-month trailing average of the endowment unit market value. For funds managed by the UCSF Foundation, the payment formula is 4.75 percent of the 36-month trailing average of the endowment unit market value.
Total UCSF Endowment
In the fiscal year ending June 30, 2021, the endowment grew $1.74 billion, or 40.1 percent over the previous fiscal year, including internal campus transfers. Gifts received in June are invested in July and are not reflected in these totals.
Private Support by Designation
UCSF received a total of $712.9 million in gifts and grants in fiscal year 2021 for endowment, current use, and capital funds.
UCSF Endowment Payout Growth
Endowment payout grew in fiscal year 2021, providing a crucial source of funding for our mission of education, research, and clinical care. UCSF Foundation endowment payout includes income earned on UCSF Benioff Children’s Hospital Oakland investments in the UCSF Foundation investment pool.