Many college and university endowments have taken a hit from recent economic downturn. Locally, UNC – Chapel Hill lost 20 percent of its value or about $440 million in the last year.
Jon King, CEO of UNC Management Company, the entity that oversees UNC Chapel Hill’s investment funds, delivered the news last week during a presentation to UNC Chapel Hill’s Board of Trustees meeting. King’s presentation is available here. Interesting. Despite the significant financial losses, “administration fees” for UNC Management Company increased from $10.2 to $13.2 million in the last year, an increase of 29 percent (See page 17 of the report). Over the past two year administration fees have increased 57 percent. King’s presentation provides no reason for the increase. According to the UNC Management Co. web site, the company has 24 employees. Considering the trend lines and the money involved, you’d think the Board of Trustees might be interested in knowing the reasons for the steady and significant increase in administration fees.