UC San Francisco Foundation Financial Highlights
UCSF Foundation Investment Company Update
By David Harkins, Founding President and CIO
In fiscal year 2024 (FY 24), the endowment returned 7.4%, rose to $3.1 billion, and generated a $141 million payout to the University. Under the UCSF Investment Company’s stewardship, the endowment’s eight-year annualized return of 8.4% has helped it grow in real, inflation-protected terms and support crucial annual payments to the University. Each year presents unique social, economic, and investment challenges, but our long-term strategy enables us to navigate short-term volatility and make sound investment decisions. This year’s challenge is the AI revolution, which brings both hope and hype. The associated volatility is creating many opportunities for UCSF to improve the endowment’s long-term potential returns.
Since the UCS Foundation Investment Company's founding in 2016, the annualized return has increased an impressive four points to 8.4% in 2024, providing vital endowment growth. These returns, paired with generous philanthropy, have nearly quadrupled the annual payout. This funding accelerates UCSF's groundbreaking research, innovative education, and compassionate patient care.
UCSF Foundation Investment Company Board
Endowment Management
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 42 percent of the endowment. The other 58 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, 2024
The following chart illustrates returns received and the benchmarks used to evaluate performance by the UCSF and UC Regents’ foundations.
Payout calculations
The current gross payout rate for endowments for funds managed
by the UC Regents is 5 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, 2024, the endowment totaled $6.88 billion, 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 $799.9 million in gifts and grants in fiscal year 2024 for endowment, current use, and capital funds.
UCSF Endowment Payout Growth
Endowment payout grew in fiscal year 2024, 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.