UNIVERSITY OF ALASKA FOUNDATIONANNUAL FINANCIAL REPORTFOR FISCAL YEAR 2016

Presented to the Audit Committee of the Board of Regents

Jim LynchTreasurer

November 4, 2016

Consolidated Endowment Fund

Financial HighlightsFor Fiscal Year 2016

3

U of A

Foundation

$140.6

$169.2

$309.8

$127.8

$157.1

$284.9

Millions

Consolidated Endowment Fund

Financial Position

6/30/2016

6/30/2015

Total Fund

4

Assessments

Spending

Additions

Total Return

Net Decrease

Millions

Consolidated Endowment Fund

Changes in Net Assets

July 1, 2015 - June 30, 2016

Foundation

U of A

($24.9)

($15.7)

$4.5

($11.4)

($2.3)

5

$0

$50

$100

$150

$200

$250

$300

$350

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

$147.0

$143.1

$108.9

$114.2

$125.4

$125.2

$134.6

$146.2

$140.6

$127.8

$119.5

$116.2

$8

9.5

$102.0 $1

31

.9

$137.8

$151.7 $173.2

$169.2

$157.1

Mil

lio

ns

Consolidated Endowment Fund

Total Assets

U of A Foundation

$263.0$286.3

$319.4$309.8

$284.9$266.5

$259.3

$198.3$216.2

$257.3

6

$0

$50

$100

$150

$200

$250

$300

$350

Mil

lio

ns

Consolidated Endowment Fund

Total Assets

$277.6 10/31/07

$180.8 3/31/09

$284.9 6/30/16

$71.7 7/1/97

$140.4 6/30/01

$116.3 9/30/02

7

-30%

-20%

-10%

0%

10%

20%

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

18.1%

-2.4%

-23.9%

9.5%

18.0%

0.9%

10.0%13.1%

-1.5%

-4.7%

Consolidated Endowment Fund

Investment Returns

Recent Headlines

“College Endowments Seen Posting Worst Returns

Since 2009.” Bloomberg, 8/2/16

“Harvard Endowment's 2 Percent Loss Magnifies

Decade of Struggle.” Bloomberg, 9/22/16

“Dartmouth's Endowment Posts Loss, Joining Two

Ivy League Peers.” Bloomberg, 9/23/16

“University of Oregon Endowment Goes Against

Tide With 2.5% Gain.” Bloomberg, 9/20/16

“Most Funds Feel Dreaded Pinch of Negative

Returns; 80% of Endowments End Fiscal Year in the

Red.” Pensions & Investments, 10/17/16

8

9

$0

$2

$4

$6

$8

$10

$12

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

$3.4$4.1 $3.7

$4.8 $5.1 $4.7 $4.7

$6.3$5.7

$3.4

$3.9

$4.3

$1.8

$3.3

$4.8$4.9 $4.7

$5.3$5.7

Mil

lio

ns

Consolidated Endowment Fund

Spending Distributions

U of A Foundation

$9.8 $9.6 $9.4

$11.6 $11.4

$8.1

$7.3

$8.4

$5.5

$8.2

$4.7

University of AlaskaFoundation

Financial HighlightsFor Fiscal Year 2016

11

Net Assets (Equity)

Liabilities

$229.5

$145.1

$374.6

$216.9

$131.7

$348.6

University of Alaska Foundation

Financial Position

6/30/2016

6/30/2015

Total Assets

Millions

12

Other Assets

Pooled Endowment Funds

Other Investments

Contributions Receivable

Cash & Equivalents

Total Assets

$11.9

$300.8

$25.5

$6.4

$30.0

$374.6

$4.5

$283.5

$24.8

$2.7

$33.1

$348.6

University of Alaska Foundation

Total Assets

6/30/2016

6/30/2015

Millions

13

Assets Held in Trust for UA

Term Endowment Liability

Split Interest Obligations

Other Liabilities

Due to UA

Total Liabilities

$140.6

$1.0

$0.4

$0.4

$2.8

$145.1

$127.8

$1.0

$0.3

$0.6

$2.1

$131.7

Millions

University of Alaska Foundation

Liabilities

6/30/2016

6/30/2015

14

Unrestricted

Temporarily

Restricted

Permanently

Restricted

Total Net Assets

$26.0

$101.3

$102.2

$229.5

$24.2

$89.0

$103.7

$216.9

University of Alaska Foundation

Net Assets By FASB Classification

6/30/2016

6/30/2015

Millions

15

Unrestricted

Designated /

Restricted

Endowed

Total Net

Assets

$8.3

$50.3

$170.9

$229.5

$8.9

$50.8

$157.2

$216.9

Millions

University of Alaska Foundation

Net Assets By Type

6/30/2016

6/30/2015

16

Accumulated

Earnings

Original Principal

Total

Endowments

$29.5

$141.4

$170.9

$13.6

$143.6

$157.2

Millions

University of Alaska Foundation

Endowment Funds

6/30/2016

6/30/2015

17

Other Revenues

Support from UA

Assessments

Investment Earnings

Contributions

Total Revenues

$0.3

$0.6

$0.7

($2.2)

$16.6

$16.0

$0.2

$0.4

$0.7

($8.2)

$13.1

$6.3

Millions

University of Alaska Foundation

Total Revenues

FY16

FY15

18

General

UAS

UAF

UAA

Total

$0.7

$0.4

$9.5

$5.9

$16.6

$0.9

$0.5

$7.3

$4.4

$13.1

Millions

University of Alaska Foundation

Contribution Income

FY16

FY15

19

20

Dept. Support

59%

KUAC

5%

Library

3%

Museum

4%

Research

7%

Student Aid

22%

University of Alaska Foundation

Distributions for the Benefit of University of Alaska

Year Ended June 30, 2016

21

$0

$50

$100

$150

$200

$250

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

$166.0 $175.9

$158.3 $168.9

$190.0 $193.8

$206.3

$232.8 $229.5

$216.9

Mil

lio

ns

University of Alaska Foundation

Net Assets

22

$0

$10

$20

$30

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

$20.0

$29.1 $29.8

$15.9 $15.8

$17.8

$14.5

$20.3

$16.6

$13.1

Mil

lio

ns

University of Alaska Foundation

Contribution Revenues

23

($40)

($30)

($20)

($10)

$0

$10

$20

$30

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

$20.9

($2.8)

($29.5)

$9.1

$19.8

$0.7

$14.3

$19.7

($2.2)

($8.2)

Mil

lio

ns

University of Alaska Foundation

Investment Earnings

24

$0

$5

$10

$15

$20

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

$15.5 $15.4

$17.7

$13.3 $13.7 $13.9

$16.0

$13.1

$16.5 $15.9

Mil

lio

ns

University of Alaska Foundation

Distributions for the Benefit of University of Alaska

25

$0

$1

$2

$3

$4

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

$2.2 $2.3 $2.4

$2.6

$2.8 $2.9

$3.2 $3.1

$3.4 $3.5

Mil

lio

ns

University of Alaska Foundation

Distributions for Student Aid

26

$38.9

$24.8

$157.1

$127.8

$348.6

Cash & Other

Assets

Other Long-Term

Investments

Foundation Pooled

Endowment

UA Land Grant

Endowment

Total

Millions

University of Alaska Foundation

Assets Under Management, June 30, 2016

UA Foundation

$220.8

Consolidated

Endowment Fund

$284.9