UGAF Press Releases

TO: UGA Foundation Trustees

FROM: Cindy Coyle

As many of you may be aware, Commonfund received notice on Monday from Wachovia Bank, in its capacity as Trustee of the Short Term Fund, that Wachovia Bank would no longer accept deposits and redemptions were frozen in order to provide for an orderly liquidation and distribution of the fund's assets. The Commonfund Short Term Fund serves approximately 1000 Colleges and Foundations with approximately $9.3 Billion in assets.

What does this mean to UGA Foundation?

On Monday, the UGA Foundation had $5M invested in the Short Term Commonfund. As you might recall, UGAF had $20M with the Short Term Fund in December a year ago, and the Committee voted to move $15M to Federated due to our increased concern over the liquidity of the underlying assets. The funds in both the Short Term Fund and Federated represent operating funds for the UGAF. With approximately $14.M with Federated, UGAF should not have a problem in funding current year operations.

As of this morning, the remaining balance in the Short Term Commonfund is $3,364,850.76. We have been able to recover 32.7% since Monday as the underlying assets have been sold. It is anticipated that 57% will be recovered by the end of December and the balance will be recovered over a longer term of at least two years.

Following is an article that appeared in the Athens Banner Herald today. The Commonfund Short Term Fund was a "hot topic" in the past three days and the press has been calling. Also attached to this email is the latest communication from the Commonfund which may be of interest.

Please call if you have any questions.

And, we look forward to seeing you next week at the Trustee meeting.

FROM THE ATHENS BANNER HERALD THIS MORNING:

Wachovia freezes fund, but UGA not affected

University, other area colleges see no negative impact

By Lee Shearer | lee.shearer@onlineathens.com | Story updated at 11:43 pm on 10/1/2008

Two University of Georgia-related foundations in December withdrew millions of dollars from an investment fund now frozen by Wachovia Bank.

Wachovia officials announced this week that the bank would freeze more than $9 billion in assets in the Common Fund for Short Term Investments, an investment pool used by hundreds of colleges and private schools. Wachovia, sold Monday to Citigroup to avoid collapse, is the trustee of the fund and will release the money little by little between now and 2010 as it liquidates the fund.

The freeze left colleges and schools unable to get to their money, and since some colleges used the fund as a sort of checking account, officials at a few schools across the country said they could have a hard time meeting payroll, according to The Chronicle of Higher Education.

Officials at UGA and other area colleges say the local schools won't be affected by Wachovia's turmoil, however.

UGA's two major foundations had $40 million invested in Wachovia's Common Fund for Short Term Investments, but now have less than $5 million in the fund.

The University of Georgia Foundation investment committee voted in December to remove $15 million of the $20 million the nonprofit corporation had in the fund and invest it elsewhere.

The newer, smaller Arch Foundation followed suit, withdrawing all but $25,000 of about $20 million that foundation had invested in the fund and putting it in an investment fund the state Board of Regents oversees, said UGA spokesman Tom Jackson.

The Arch Foundation has about $800,000 in another account at the Common Fund, but the amount is too small to affect cash flow at the foundation, Jackson said.

UGA Vice President for Finance and Administration Tim Burgess said he was more concerned about unrelated bank accounts UGA has with Wachovia, including the university's largest payroll account. UGA has a monthly payroll of about $45 million, he said.

Burgess learned that the UGA money deposited with Wachovia is safe, backed up by bank-owned securities, he said.

Piedmont College also is unaffected by the freeze. None of the college's endowment money is invested with Common Fund, said Tom Bowen, Piedmont's vice president for finance and administration.

Gainesville State College's foundation likewise has no money invested with Wachovia, said Sloan Jones, a spokeswoman for the college.

Officials at Athens-area private schools Athens Christian School and Westminster Christian Academy also said their operations would not be affected by the Wachovia sale. A spokeswoman for the Archdiocese of Atlanta said two Catholic schools in Athens will not be affected by the freeze.

The UGA Foundation's investment committee decided to remove most of its $20 million in the Common Fund after studying the underlying assets for the Common Fund for Short Term Investments. But the group decided to leave $5 million in the investment because of the foundation's 20-year relationship with the fund, said Chip Stewart of Cookerly Public Relations, a spokesman for the foundation.

The UGA Foundation manages about $700 million in assets on behalf of UGA. Income the foundation gets from investing the money is used for student scholarships and salary supplements to professors who hold endowed chairs.

The Common Fund has consistently yielded better than average investment returns, Stewart said.

Originally published in the Athens Banner-Herald on Thursday, October 02, 2008

University of Georgia Foundation's Fall Meeting Held in Athens
Foundation announces spectacular investment results, excellent donor support and new initiatives that continue to enhance academics at the University of Georgia

For Immediate Release
ATHENS, Ga. (October 2, 2007) - The University of Georgia Foundation concluded its fall meeting in Athens over the weekend and announced several new developments that will further enhance its mission of supporting academics at the University of Georgia.

Responsible Stewardship of Funds Highlighted
The foundation's investment committee announced that final, audited figures show it achieved a spectacular rate of return on investments of 20.4% for fiscal year ending June 30, 2007. This helped the foundation continue to grow its total assets, which now sit at an all-time record of approximately $676 million.

University of Georgia Students Managing a Portfolio for the Foundation
Investment Committee Chair Joe Frierson announced to the board of trustees that the foundation received a gift of $100,000 for a new initiative called "SMIF" - the Student Managed Investment Fund administered by the Banking and Finance Department of the Terry College of Business.

Unlike hypothetical investment scenarios often created in classrooms, SMIF will allow a group of 15 University of Georgia students to invest and manage funds in a real life setting. The program requires that the team provide the foundation with an annual report on results and offers a superb learning experience that helps prepare participants to work as investment professionals and to manage personal funds.

Donors continue to show extraordinary generosity
The University of Georgia Foundation continues to prove itself to be an avenue of choice for donors who wish to see their funds handled responsibly and effectively. The foundation announced that it received approximately $28 million in new gifts and pledges in fiscal year 2007.

"It is truly gratifying to know that donors continue to place their trust in the University of Georgia Foundation," said Chairman Bill Young, Jr. "We regard it as a sacred responsibility to assure that their funds are managed in such a way that each gift yields the maximum benefit to help the University of Georgia fulfill its academic mission."

University of Georgia Study Abroad Program achieves another milestone
The University of Georgia's study abroad program got a major boost when the foundation purchased a new facility for the Oxford program last summer. The foundation announced at its fall meeting that extensive renovations had been completed on schedule and in time for students to move in for the fall semester. This development allowed the foundation to complete the sale of the smaller facility in which the Oxford study abroad program was originally housed.

Trustees' endowment - makes first award to the university
The full-board approved a measure that established The Legacy Endowment of the University of Georgia Foundation Trustees as an annual giving program and reported that Trustees contributed more than $100,000 to the fund last fiscal year. The fund is structured to allow the Trustees to make the decisions each year on programs to support within the university.

To that end, the board unanimously approved the first funding from the endowment in the form of a $5,000 award to the "Dean's Promise Fund" in the College of Agricultural and Environmental Sciences.

"I'm truly appreciative of my fellow trustees for supporting this effort," said Young. To know that our trustees voted to make it an annual commitment in addition to their other giving to the university, speaks to the quality of the people who are on this board and I couldn't be more pleased with the results."

University of Georgia Foundation Endows $2 Million to Enhance Academics at the University of Georgia

$1 million for Scholarships and $1 Million for Faculty Support
ATHENS, Ga. (June 29, 2006) - The University of Georgia Foundation announced today that its board of trustees has approved the funding of $2 million in new scholarships and faculty development initiatives. The funding was made possible because of a $2.8 million surplus in the foundation's budget for the fiscal year ending June 30.

The remaining $800,000 will be added to the foundation's unrestricted funds, which can be designated for other UGA academic needs at a future date. Such funds are managed by the foundation's investment committee, which has earned an average rate of return of approximately 10 percent annually for the last decade.

A breakdown of how the $2 million in new funding has been allocated is as follows:

Scholarships:
•  $500,000 to endow scholarship funding for undergraduate study abroad programs.
•  $250,000 to endow funding for professional school scholarships in law.
•  $250,000 to endow and extend the scholarship funding initiated in 2005 for need-based and Georgia Incentive Scholarships targeted to outstanding students who may not have otherwise had an opportunity to attend the University of Georgia.

Faculty support:
•  $500,000 for the endowment of a Distinguished Professorship in Biology.
•  $250,000 to endow seed grants for a faculty development program that will improve teaching skills of young faculty members.
•  $250,000 to endow Faculty Development Grants for professional study leaves to keep faculty abreast of changes in their fields of expertise.

The foundation's board worked with University of Georgia Provost Arnett Mace to determine specific areas of greatest need and allocated the funds accordingly.

"We are most appreciative of the collaborative spirit in which we were able work with the provost," said University of Georgia Foundation Chairman Read Morton. "The funding we have allocated will help the university attract and retain outstanding students and professors for years to come."

"On behalf of the University of Georgia Foundation Board of Trustees, I offer my sincere thanks to those who have provided the gifts that have made these initiatives possible," Morton concluded.

University of Georgia Foundation hosts dinner to honor holders of foundation-sponsored chairs and professorships

For Immediate Release

ATHENS, Ga. (March 28, 2007) - The University of Georgia Foundation hosted a gala dinner celebration last night, recognizing holders of chairs and professorships at the university that are funded through donor gifts to the foundation.

The event was held to honor some of academia's most highly respected educators. University of Georgia Foundation Chairman Read Morton made a presentation to the crowd, focusing on the organization's history and its mission, which is to provide funding across a range of initiatives for the enhancement of academics at the university.

"This dinner takes us back to the very roots of the foundation and highlights what the first board members and incorporators had in mind when they founded the organization 70 years ago," Morton said. "Their sole mission in 1937 was to build and administer an endowment fund to assure the university could attract and retain the very best instructors in the world.

"I believe they would be pleased with the way that mission is being carried out today as we are blessed with truly outstanding academic leaders," he continued. "On behalf of the University of Georgia Foundation, we are gratified that donors have entrusted us with their funds to support the chairs and professorships held by our honorees. I want to thank them for giving us the ability to help the university attract and retain faculty leaders that are second to none."

There are a total of 138 chairs and professorship funded through endowments at the University of Georgia Foundation. The professors work in a diverse array of academics and research throughout the university.

The foundation's investment returns over the last decade-plus have averaged better than 10-percent per year. This investment success has helped the endowments to continue growing and providing increased annual support for the chairs and professorships.

University of Georgia Foundation Welcomes Four New Board Members
Jeff Knox, Wick Searcy, Mike Godwin and Ken Jackson

ATHENS, Ga. (June 30, 2006) - The University of Georgia Foundation announced today it has named four new members to its Board of Trustees; Jefferson "Jeff" Knox of Augusta, William "Wick" Searcy of Savannah, Michael H. Godwin of Valdosta and Kenneth G. Jackson of Chattanooga, Tenn. Their terms of service begin July 1.

•  Jeff Knox earned a Bachelor of Arts in economics from the University of Georgia in 1984 He is executive director of the Knox Foundation, a position he has held since 1998, and also serves on several non-profit boards in the community. Knox formerly served as vice president at Allied Bankshares for 12 years.

•  Wick Searcy is an attorney and partner with the Savannah law firm of Brannen, Searcy & Smith. A Thomasville native, he graduated from the University of Georgia with a Bachelor of Arts degree in economics in 1964 and with a Juris Doctorate in 1967.

In 2004, Searcy retired as a major general and commander of the Georgia Air National Guard, with which he had served since 1967. He currently sits on the board of the Citizens Bank of Cairo and is a member of the Savannah Bar Association, the State Bar of Georgia and the American Bar Association

•  Mike Godwin is CEO/President of The Ambling Companies, a real estate development firm that specializes in niche markets including student, affordable, senior, military and resort-style single-family housing.

Godwin is a member of the Association of College and University Housing Officers - International, the National Home Builders Association and the Georgia Affordable Housing Coalition. He also sits on the board of PAB Bankshares, a Valdosta-based holding company for Park Avenue Bank, and several Valdosta non-profits.

•  Ken Jackson graduated from the University of Georgia in 1979 with a Bachelor of Business Administration in accounting. He also earned a Masters of Accounting in taxation from the university in 1980. Jackson has served as CFO of Dalton-based Shaw Industries since 1996. Prior to his current position, he worked for the accounting firm of Arthur Andersen for 14 years.

A former member of the Terry College of Business alumni board, Jackson currently sits on the Tull School of Accounting Advisory Board and on the advisory board of insurance company FM Global.

"These are four outstanding additions to our board," Chairman Read Morton said. "Each of these individuals brings a special skill to the board that should prove beneficial to the foundation and to the university. I look forward to working with them in the years ahead."

Each of the new members was approved by unanimous vote of managing trustees at the foundation's annual meeting and will be welcomed at the next full board meeting in Athens this fall.

University of Georgia Foundation Endows $2 Million to Enhance Academics at the University of Georgia

$1 million for Scholarships and $1 Million for Faculty Support
ATHENS, Ga. (June 29, 2006) - The University of Georgia Foundation announced today that its board of trustees has approved the funding of $2 million in new scholarships and faculty development initiatives. The funding was made possible because of a $2.8 million surplus in the foundation's budget for the fiscal year ending June 30.

The remaining $800,000 will be added to the foundation's unrestricted funds, which can be designated for other UGA academic needs at a future date. Such funds are managed by the foundation's investment committee, which has earned an average rate of return of approximately 10 percent annually for the last decade.

A breakdown of how the $2 million in new funding has been allocated is as follows:

Scholarships:
•  $500,000 to endow scholarship funding for undergraduate study abroad programs.
•  $250,000 to endow funding for professional school scholarships in law.
•  $250,000 to endow and extend the scholarship funding initiated in 2005 for need-based and Georgia Incentive Scholarships targeted to outstanding students who may not have otherwise had an opportunity to attend the University of Georgia.

Faculty support:
•  $500,000 for the endowment of a Distinguished Professorship in Biology.
•  $250,000 to endow seed grants for a faculty development program that will improve teaching skills of young faculty members.
•  $250,000 to endow Faculty Development Grants for professional study leaves to keep faculty abreast of changes in their fields of expertise.

The foundation's board worked with University of Georgia Provost Arnett Mace to determine specific areas of greatest need and allocated the funds accordingly.

"We are most appreciative of the collaborative spirit in which we were able work with the provost," said University of Georgia Foundation Chairman Read Morton. "The funding we have allocated will help the university attract and retain outstanding students and professors for years to come."

"On behalf of the University of Georgia Foundation Board of Trustees, I offer my sincere thanks to those who have provided the gifts that have made these initiatives possible," Morton concluded.