GT FOUNDATION PRESENTATIONSPRING 2017 GTAB

G A RY J O N E S , C H A I RA P R I L 1 0 , 2 0 1 7

It is the mission of the Georgia Tech Foundation, its Board of Trustees, officers and staff to foster and manage gifts given in support of academic excellence in the spirit and traditions of the Georgia Institute of Technology. The Foundation is honored to be entrusted with this mission and encourages every person working on its behalf to always:

Receive and manage financial donations received by the Foundation for support and enhancement of the Georgia Institute of Technology

Assist the Georgia Institute of Technology in its role as a leading educational and research institution

Promote the cause of higher education in the state of Georgia

501c3 corporation governed by:§45 Maximum Elected Trustees§69 Emeritus Trustees§4 Officers§4 Ex-officio voting members

President of Georgia TechChair, Georgia Tech Advisory BoardChair, Past Chair, Chair-Elect on Alumni Association

Total Assets $1.964 BillionInvestment Pool $1.541 Billion As of 2/28/17

July 1, 2015 – June 30, 2017

Gary Jones ChairJohn Brock Vice Chair-Chair ElectJoe Evans TreasurerJim Lientz Past Chair

Al Trujillo President Mark Long Corporate Secretary/CFO

Al TrujilloPresident

Jim TaylorChief Investment

Officer

Mark LongChief Financial

Officer

Dwight DozierChief Information

Officer

Pat WichmannChief Administrative

Officer

Cailen BelangerExecutive Assistant

• Develop and implement long term investment program for the

Foundation’s investment pool

• Receive, account for and disburse

funds in accordance with

Board of Trustees approved budget and donor intent

• Oversee Advance Document

Management system with

interface to all GT constituents

• Provide all end-users a self-service reporting system, help desk, training and policies and

procedures

• Oversee general GTF operations

• Manage GTF Administrative

needs

• Stewardship for GTF Trustees

Senior Team

Foundation Standing CommitteesCommittee Chair Key Activities

Executive Committee Gary Jones

§ Advise the Board on matters within its special competence and undertake special projects in furtherance of the purposes of the Foundation

Finance Committee Joe Evans

§ Review all expenditures from unrestricted and restricted funds and recommend financial policies to the Executive Committee, including but not limited to spending and debt policies

Investments Committee Larry Huang § Manage the Foundation’s investments, including asset

allocation

Real Estate Committee David Flanagan § Oversee all matters concerning real estate owned or

operated by, or being considered by, the Foundation

Development Committee Bob Anclien

§ Work with GIT, the Office of Development and the President’s Office to develop and coordinate fundraising activities

Stewardship Committee Walt Ehmer § Communicate with donors expressing appreciation for

and reporting results of their contributions

AuditCommittee Kelly Barrett

§ Select a CPA firm to conduct yearly audit§ Examine audit report and give annual report to the

Board

TOTALGEORGIATECHFOUNDATIONASSETSTHROUGH2/28/17

(INMILLIONS)

$406 $2,503 $.28M $.93M $3.7M $22M

$179M$325M

$899M

$1,247M

$1,438M

$1,964M

$0

$200

$400

$600

$800

$1,000

$1,200

$1,400

$1,600

$1,800

$2,000

Millions

GTF TOTAL ASSETS, LIABILITIES,NET ASSETS

FY96 – FY17 (2/28/17)(IN MILLIONS)

$0

$500

$1,000

$1,500

$2,000

$2,500

$409

$1,108

$1,630

Mill

ions

Net Assets$1,463M

Liabilities$501M

Total Assets$1,964M

Cash and cash equivalents

$6 MillionContributions Receivable$78 Million

Investment Pool$1,541 Million

Other Investments$33 Million

Other Assets$10 Million

Leases Receivable $164 Million

Charitable Remainder

Trusts$28 Million

Capital Reserve Funds

$8 Million

Capital Assets $96 Million

$1,343

$1,023$1,125

$1,324$1,275$1,387

$1,546 $1,540$1,468 $1,541

$0

$200

$400

$600

$800

$1,000

$1,200

$1,400

$1,600

6/30/08 6/30/09 6/30/10 6/30/11 6/30/12 6/30/13 6/30/14 6/30/15 6/30/16 2/28/2017

Mill

ions

Restricted Endowment

Unrestricted Unrestricted Endowment

$87M6%

$1,047M68%

$162M10%

$245M16%

RestrictedExpendable

2,700Accounts

1,500Accounts

13.2%

3.2%**

5.6%**

4.7%**

13.3%

3.6%**

5.6%**

2.8%**

7.7%

6.2% 6.4%6.8%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

Georgia Tech FoundationPolicy PortfolioCPI (Consumer Price Index) +5%

*Annualized** Includes the “actively” managed portions of GTF’s investment pool.

ONE YEAR THREE YEAR* FIVE YEAR* TEN YEAR*

Performance DataFebruary 28, 2017

Asset Class 2/28/17

AllocationsStrategic Targets*

Allocation Ranges

U.S. Equities 21.2% 24.6%**International Equities 21.2% 21.6%**

Global Stocks 42.4% 46.2% 30-54%

Fixed Income 10.8% 9.9% 9-20%

Hedge Funds 21.5% 18.7% 10-24%

Private Equities 15.8%Real Estate 2.8%Oil & Gas/Timber 4.9%

Total Private Investments 23.5% 23.0% 35% max

Cash 1.9% 2.2% 0-10%*Adjusted for the private investments shortfall vs its 30% target** Relative U.S. and international equity weights in the MSCI ACWI equity index 100.0% 100.0%

$101

$61$37

$20

-$104

$106

$9 $9 $13

$130

-$34

$156

-$150

-$100

-$50

$0

$50

$100

$150

$200

FY15 (8 Months) FY16 (8 Months) FY17 (8 Months)

Gift Revenue Investment Other Revenue Total Revenue

In M

illio

ns

$74

$93

$116

$99$107 $111

$96

$116

$131

$102$111 $113

$123

$0

$20

$40

$60

$80

$100

$120

$140

FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17*

In M

illion

s

*FY17 is Forecasted

GTFREALESTATEACTIVITIESGT Hotel & Conference Center

Biltmore

Coda Land Lease

Sungard Data Center

Completing strategic review of direct real estate investment strategy.

Thank You!