2022-05-12T12:02:53-05:00 2021-06-30 135565207 KPMG LLP 500 W 5TH ST STE 800 WINSTONSALEM NC 27101 990 2020-07-01 364516257 UNC MANAGEMENT COMPANY INC UNCM 9194421599 1400 ENVIRON WAY CHAPEL HILL NC 27517 JONATHON C KING PRESIDENT 9194421599 2022-05-12 1 JONATHON KING 999009999 SHAWN M HUTCHINSON P01048557 3362753394 0 AAL1 IAL1 2020 2022-09-23 18:48:47Z JONATHON C KING 1400 ENVIRON WAY CHAPEL HILL NC 27517 24383989 0 X WWW.UNCMC.UNC.EDU X 2002 NC TO PROVIDE INVESTMENT MANAGEMENT AND ADMINISTRATIVE SERVICES TO THE UNIVERSITY OF NORTH CAROLINA AND AFFILIATES 8 5 43 5 0 0 0 0 19734678 24259192 129940 66618 0 0 19864618 24325810 0 4000000 0 0 14294334 17664473 0 0 0 3705648 3500261 17999982 25164734 1864636 -838924 32240475 42605253 10441398 13811038 21799077 28794215 X UNC MANAGEMENT COMPANY'S MISSION IS TO PROVIDE PROFESSIONAL ASSET MANAGEMENT SERVICES TO THE UNIVERSITY OF NORTH CAROLINA SYSTEM, THE UNIVERSITY OF NORTH CAROLINA AT CHAPEL HILL AND ITS OTHER CONSTITUENT INSTITUTIONS AND THEIR AFFILIATED ENDOWMENT, FOUNDATIONS AND ENTITIES BY MAXIMIZING THE LONG-TERM RETURN ON THE INVESTMENT PORTFOLIO COMMENSURATE WITH SPECIFIED RISK PARAMETERS. KEEPING WITH THE HIGHEST PROFESSIONAL AND ETHICAL STANDARDS, OUR OBJECTIVE IS TO PROTECT AND ENHANCE THE VALUE OF THE ASSETS ENTRUSTED TO US. WE STRIVE TO ESTABLISH UNC MANAGEMENT COMPANY AS THE PREFERRED PROVIDER OF INVESTMENT MANAGEMENT SERVICES FOR THE UNIVERSITY OF NORTH CAROLINA, ITS CONSTITUENT INSTITUTIONS AND AFFILIATES. 0 0 21774612 4000000 24259192 SEE SCHEDULE OUNC MANAGEMENT COMPANY, INC. PROVIDES INVESTMENT MANAGEMENT SERVICES TO THE UNIVERSITY OF NORTH CAROLINA SYSTEM, THE UNIVERSITY OF NORTH CAROLINA AT CHAPEL HILL AND ITS OTHER CONSTITUENT INSTITUTIONS AND THEIR AFFILIATED ENDOWMENT, FOUNDATIONS AND ENTITIES.THE MANAGEMENT COMPANY HAS BEEN RETAINED BY THE UNC CHAPEL HILL FOUNDATION INVESTMENT FUND ("CHIF") BOARD OF DIRECTORS TO SERVE AS THE INVESTMENT MANAGER FOR THE UNC INVESTMENT FUND, LLC (THE "FUND"). IN THIS ROLE, THE MANAGEMENT COMPANY WORKS IN CONCERT WITH THE CHIF BOARD OF DIRECTORS AND IS RESPONSIBLE FOR OVERSEEING THE FUND'S INVESTMENTS AND PROVIDING ADMINISTRATIVE SERVICES, INCLUDING EVALUATING AND MONITORING THE EXTERNAL INVESTMENT MANAGERS RETAINED BY THE FUND AND RECOMMENDING CHANGES TO THE FUND'S INVESTMENT OBJECTIVES, ASSET ALLOCATION AND INVESTMENT IMPLEMENTATION FOR APPROVAL BY THE CHIF BOARD OF DIRECTORS. UNCMC ALSO SERVES AS INVESTMENT MANAGER FOR THE UNC INTERMEDIATE POOL, LLC, WITH THE OBJECTIVE OF GENERATING A TOTAL INVESTMENT RETURN HIGHER THAN WHAT CAN BE EARNED ON SHORT-TERM, MONEY MARKET BASED INVESTMENTS. THIS POOL WAS ESTABLISHED TO MEET CERTAIN LIQUIDITY NEEDS OF THE POOL'S PARTICIPANTS. 21774612 1 0 0 0 0 0 0 0 0 0 1 1 0 0 1 0 1 1 0 0 0 0 0 0 0 0 0 1 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 1 1 0 1 43 1 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 X 8 5 1 0 0 0 0 0 0 1 1 0 0 1 1 1 1 1 1 1 1 0 X MARGARET HOLDER 9194421599 1400 ENVIRON WAY CHAPEL HILL NC 27517 JONATHON C KING PRESIDENT 50.00 0.00 X X 2003609 0 686952 KEVIN GUSKIEWICZ DIRECTOR 1.00 40.00 X 0 623102 73241 MAX C CHAPMAN JR DIRECTOR 1.00 0.00 X 0 0 0 JOHN L TOWNSEND III DIRECTOR 1.00 0.00 X 0 0 0 JOHN G B ELLISON JR DIRECTOR 1.00 0.00 X 0 0 0 MICHAEL D KENNEDY DIRECTOR 1.00 0.00 X 0 0 0 RICHARD Y STEVENS DIRECTOR 1.00 0.00 X 0 0 0 NATHAN KNUFFMAN DIRECTOR 1.00 40.00 X 0 306702 68466 JONATHAN PRUITT DIRECTOR 1.00 40.00 X 0 276037 55059 KEVIN TUNICK VP - PRIVATE INVESTMENTS 50.00 0.00 X 994271 0 324392 JOSHUA SHAPIRO VP - INV STRATEGY & RISK MGMT 50.00 0.00 X 930442 0 332926 EDWARD HETHERINGTON VP - PUBLIC INVESTMENTS 50.00 0.00 X 894494 0 322625 TIM BURCH VP - LEGAL & COMPLIANCE 50.00 0.00 X 397000 0 183075 RODGERS HARSHBARGER SENOIR DIRECTOR - INVESTMENTS 50.00 0.00 X 608949 0 241913 ANGELA MOSS SENIOR DIRECTOR - INVESTMENTS 50.00 0.00 X 589737 0 240219 CHRIS BARTHOLOMEW SENIOR DIRECTOR - INVESTMENTS 50.00 0.00 X 577670 0 233794 CHRIS RUDOLPH SENIOR DIRECTOR - INVESTMENTS 50.00 0.00 X 587223 0 238006 MATTHEW LESESKY SENIOR DIRECTOR - INVESTMENTS 50.00 0.00 X 581953 0 235258 8165348 1205841 3235926 26 0 1 0 UNIVERSITY ACCOUNTING SERVICES CB 1210 104 AIRPORT DRIVE CHAPEL HILL NC 27599 ACCOUNTING 683963 FACTSET RESEARCH SYSTEMS 45 GLOVER AVE 7TH FLOOR NORWALK CT 06850 SOFTWARE 372917 BNY MELLON 240 GREENWICH STREET NEW YORK NY 10286 INVESTMENT 280000 BURGISS GROUP 11 RIVER STREET 10TH FLOOR HOBOKEN NJ 07030 TECH SUPPORT 198132 LOGICALLY 1600 HILLSBOROUGH STREET 1639 RALEIGH NC 27605 SOFTWARE 196020 5 MANAGEMENT FEE INCOME 900099 24259192 24259192 24259192 19796 19796 105001 58179 46822 46822 46822 24325810 24259192 0 66618 4000000 4000000 5247245 4516272 730973 9716458 8237763 1478695 1027958 853205 174753 930071 771860 158211 742741 593215 149526 58793 58793 823598 769898 53700 114724 114724 95688 95688 307586 255296 52290 1095723 1017283 78440 694884 576754 118130 6036 5701 335 18723 18723 134157 134157 140568 62366 78202 EDUCATIONAL FUND EXPENS 6000 6000 TAXES 2987 2987 OTHER EXPENSES 588 588 CONTRIBUTIONS 206 206 25164734 21774612 3390122 0 8017059 8380905 5002824 7141156 359351 427196 1602411 1330806 247250 271605 18559782 26335665 5600 0 48609 48726 32240475 42605253 6539451 13690446 3901947 0 120592 10441398 13811038 X 21799077 28794215 21799077 28794215 32240475 42605253 -838924 7834062 0 X 0 1 X 1 0 X X 1 UNIVERSITY OF NORTH CAROLINA AT CHAPEL HILL 566001393 2 1 4000000 0 1 4000000 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 1602411 1330806 271605 271605 UNC INVESTMENT FUND, LLC 26335665 F 26335665 DEFERRED RENT CREDIT 68977 DEFERRED LEASE EXPENSE 51615 120592 32159872 7834062 7834062 24325810 0 24325810 25164734 0 25164734 0 25164734 1 UNIVERSITY OF NORTH CAROLINA AT CHAPEL HILL 104 AIRPORT DRIVE CB 1270 CHAPEL HILL NC 27599 566001393 501(C)(3) 4000000 SUPPORT 1 PART I, LINE 2: UNC MANAGEMENT COMPANY'S CONTRIBUTION TO A 501(C)(3) CHARITABLE ORGANIZATION IS TO BE USED IN THE ORGANIZATION'S MISSION. ACCORDINGLY, UNC MANAGEMENT COMPANY DOES NOT MONITOR THE USE OF THESE FUNDS. X X X X 0 1 0 0 1 0 1 1 0 JONATHON C KING PRESIDENT 733973 0 1259730 0 9906 0 670199 0 16753 0 2690561 0 609193 0 KEVIN TUNICK VP - PRIVATE INVESTMENTS 444048 0 540317 0 9906 0 306725 0 17667 0 1318663 0 267117 0 JOSHUA SHAPIRO VP - INV STRATEGY & RISK MGMT 415015 0 512073 0 3354 0 298758 0 34168 0 1263368 0 196325 0 EDWARD HETHERINGTON VP - PUBLIC INVESTMENTS 403529 0 490185 0 780 0 284479 0 38146 0 1217119 0 238667 0 RODGERS HARSHBARGER SENOIR DIRECTOR - INVESTMENTS 296589 0 311580 0 780 0 204197 0 37716 0 850862 0 144815 0 ANGELA MOSS SENIOR DIRECTOR - INVESTMENTS 285087 0 303480 0 1170 0 203878 0 36341 0 829956 0 137358 0 CHRIS RUDOLPH SENIOR DIRECTOR - INVESTMENTS 285087 0 300966 0 1170 0 201665 0 36341 0 825229 0 136992 0 MATTHEW LESESKY SENIOR DIRECTOR - INVESTMENTS 284587 0 296586 0 780 0 197285 0 37973 0 817211 0 136992 0 CHRIS BARTHOLOMEW SENIOR DIRECTOR - INVESTMENTS 281594 0 295374 0 702 0 195757 0 38037 0 811464 0 137435 0 KEVIN GUSKIEWICZ DIRECTOR 0 613132 0 0 0 9970 0 57843 0 15398 0 696343 0 0 TIM BURCH VP - LEGAL & COMPLIANCE 240483 0 155347 0 1170 0 145315 0 37760 0 580075 0 52782 0 NATHAN KNUFFMAN DIRECTOR 0 306702 0 0 0 0 0 61788 0 6678 0 375168 0 0 JONATHAN PRUITT DIRECTOR 0 226720 0 0 0 49317 0 55013 0 46 0 331096 0 0 FORM 990, SCHEDULE J, PART I, QUESTION 4B SUPPLEMENTAL NONQUALIFIED RETIREMENT PLANS THE PURPOSE OF THE INCENTIVE COMPENSATION PLAN ("THE PLAN") IS TO REWARD EMPLOYEES FOR THEIR CONTRIBUTIONS TO THE SUCCESS OF THE UNC INVESTMENT FUND, LLC. THE PLAN ALSO REWARDS CONTINUED EMPLOYMENT WITH THE ORGANIZATION, FOR CERTAIN EMPLOYEES, BY DEFERRING PAYMENT OF A PORTION OF THE INCENTIVE COMPENSATION OVER THE SUBSEQUENT TWO YEARS. THE FOLLOWING INDIVIDUALS PARTICIPATED IN AND RECEIVED PAYMENT FROM A SUPPLEMENTAL NONQUALIFIED RETIREMENT PLAN: JONATHON KING - 1,259,730 KEVIN TUNICK - 540,317 RODGERS HARSHBARGER - 311,580 ANGELA MOSS - 303,480 CHRIS RUDOLPH - 300,966 CHRIS BARTHOLOMEW - 295,374 MATT LESESKY - 296,586 JOSHUA SHAPIRO - 512,073 EDWARD HETHERINGTON - 490,185 TIM BURCH - 155,347 FORM 990, SCHEDULE J, PART I, QUESTIONS 5B, 6B, & 7 UNC MANAGEMENT COMPANY MAINTAINS AN INCENTIVE COMPENSATION PLAN COVERING ELIGIBLE EMPLOYEES. THE PRIMARY PURPOSE OF THIS PLAN IS TO ATTRACT, RETAIN AND INCENTIVIZE TALENTED PROFESSIONALS. A KEY FEATURE OF THE PLAN IS THAT IT IS FORMULA DRIVEN, BASED ON OBJECTIVELY MEASURABLE CRITERIA THAT COMPARE INVESTMENT FUND RETURNS TO BENCHMARKS AND INVESTMENT OBJECTIVES, OVER MULTIPLE TIME PERIODS, TO DETERMINE "AWARDS" UNDER THE PLAN. THE COMPUTATION OF PLAN AWARDS IS PERFORMED AFTER THE COMPLETION OF EACH FISCAL YEAR. A SPECIFIED PORTION OF AMOUNTS AWARDED TO CERTAIN EMPLOYEES UNDER THE PLAN IS PAID CURRENTLY, WITH THE REMAINDER DEFERRED TO BE PAID IN FUTURE YEARS. ADDITIONALLY, SOME EMPLOYEES RECEIVE NON FIXED PAYMENTS WITH RESPECT TO MERIT THAT ARE NOT TIED TO THE UNC INVESTMENT FUND, LLC'S RETURNS. FORM 990, PART VI, SECTION A, LINE 1 UNC MANAGEMENT COMPANY HAS 8 BOARD MEMBERS, 2 OF WHICH ARE COMPENSATED AS EMPLOYEES OF THE UNIVERSITY OF NORTH CAROLINA AT CHAPEL HILL, A RELATED ORGANIZATION, AND ONE IS COMPENSATED AS AN EMPLOYEE OF UNC MANAGEMENT COMPANY. FORM 990, PART VI, SECTION A, LINE 2 BUSINESS RELATIONSHIPS KEVIN GUSKIEWICZ, BOARD MEMBER, NATE KNUFFMAN, BOARD MEMBER, AND JONATHAN PRUITT, BOARD MEMBER, HAVE A BUSINESS RELATIONSHIP. MAX CHAPMAN, BOARD MEMBER, AND JOHN TOWNSEND, BOARD MEMBER, HAVE A BUSINESS RELATIONSHIP. FORM 990, PART VI, SECTION B, LINE 11B PROCESS USED TO REVIEW FORM 990 DURING FEBRUARY OF 2022, MANAGEMENT DISTRIBUTED A DRAFT OF THE FORM 990 FOR TAX YEAR 2020 TO THE BOARD OF DIRECTORS. MANAGEMENT REQUESTED THE BOARD MEMBERS PROVIDE COMMENTS AND ASK QUESTIONS WITH RESPECT TO THE DRAFT. NO SIGNIFICANT FEEDBACK WAS RECEIVED DURING THIS PROCESS. FORM 990, PART VI, SECTION B, LINE 12C CONFLICT OF INTEREST POLICY UNC MANAGEMENT COMPANY, INC. HAS ESTABLISHED A CODE OF ETHICS WHICH HAS BEEN REVIEWED AND APPROVED BY THE COMPANY'S BOARD OF DIRECTORS. UNC MANAGEMENT COMPANY IS COMMITTED TO THE BELIEF THAT SOUND BUSINESS PRACTICES START WITH AN ABSOLUTE COMMITMENT FROM EACH EMPLOYEE TO ACT ETHICALLY IN CARRYING OUT THE COMPANY'S BUSINESS AND TO COMPLY WITH THE LAWS AND REGULATIONS THAT IMPACT ITS BUSINESS. THUS, UNC MANAGEMENT COMPANY'S EMPLOYEES MUST AVOID PARTICIPATING IN ACTIVITIES THAT CREATE OR APPEAR TO CREATE A CONFLICT OF INTEREST. UNC MANAGEMENT COMPANY HAS SPECIFIED THE FOLLOWING AREAS IN ITS POLICY TO BE POTENTIAL CONFLICTS OF INTEREST: FINANCIAL INTEREST, OUTSIDE EMPLOYMENT, CONSULTANT CONTRACTS, ACCEPTANCE OF GIFTS, BUSINESS COURTESIES, TRAVEL, LODGING AND ENTERTAINMENT, MISUSE OF RESOURCES OR ASSETS, PERSONAL GAIN USING UNDUE INFLUENCE, AND USE OF CONFIDENTIAL INFORMATION. UNC MANAGEMENT COMPANY'S CODE OF ETHICS REQUIRES EMPLOYEES TO DISCLOSE PARTICIPATION IN ACTIVITIES OR CIRCUMSTANCES THAT MAY PRESENT A CONFLICT OF INTEREST ON AN ANNUAL BASIS OR IF AT ANY TIME SUCH INDIVIDUAL BECOMES AWARE OF CIRCUMSTANCES THAT MAY PRESENT A CONFLICT OF INTEREST. THESE DISCLOSURES ARE REVIEWED BY THE COMPLIANCE OFFICER (TREASURER OF THE BOARD OF DIRECTORS). IN ADDITION, UNC MANAGEMENT COMPANY'S BYLAWS INCLUDE A CONFLICT OF INTEREST POLICY THAT APPLIES TO MEMBERS OF UNC MANAGEMENT COMPANY'S BOARD OF DIRECTORS. SUCH POLICY GENERALLY REQUIRES DIRECTORS TO DISCLOSE WHETHER THEY HAVE, OR KNOW OF, CERTAIN CONFLICTS OF INTEREST IN CONNECTION WITH TRANSACTIONS BEING CONSIDERED BY UNC MANAGEMENT COMPANY AND REQUIRES BOARD OR BOARD COMMITTEE APPROVAL OF SUCH TRANSACTIONS. FORM 990, PART VI, SECTION B, LINE 15 DETERMINATION OF COMPENSATION FOR KEY EMPLOYEES AND OFFICERS UNC MANAGEMENT COMPANY ANNUALLY SUBMITS COMPENSATION AND RELATED COST DATA TO AN INDEPENDENT THIRD PARTY CONSULTING FIRM WHICH COMPILES STATISTICAL INFORMATION GATHERED FROM COLLEGES, UNIVERSITIES, AND UNIVERSITY RELATED INVESTMENT MANAGEMENT COMPANIES. USING THIS DATA, THIS CONSULTING FIRM HAS PRODUCED A CUSTOMIZED STUDY FOR UNCMC SHOWING COMPENSATION RANGES, ON A POSITION BY POSITION BASIS, FOR COMPARABLE INSTITUTIONS. THE SUMMARIZED RESULTS OF THIS STUDY HAVE BEEN PRESENTED TO THE COMPANY'S BOARD OF DIRECTORS. THE COMPANY ALSO USES DATA FROM ADDITIONAL THIRD PARTY SOURCES TO DETERMINE COMPARABLE COMPENSATION FOR ADMINISTRATIVE POSITIONS. COMPENSATION LEVELS FOR EACH OF THE OFFICERS OF THE COMPANY (PRESIDENT AND CEO AND VICE PRESIDENTS) ARE APPROVED ANNUALLY BY THE COMPANY'S BOARD OF DIRECTORS. FORM 990, PART VI, SECTION C, LINE 19 GOVERNING DOCUMENTS UNC MANAGEMENT COMPANY, INC. DOES NOT MAKE ITS GOVERNING DOCUMENTS OR ITS CONFLICT OF INTEREST POLICY AVAILABLE TO THE PUBLIC. UNC AT CHAPEL HILL 104 AIRPORT DRIVE CB 1270 CHAPEL HILL NC 27599 566001393 EDUCATION NC 501(C)(3) 2 N/A 0 0 1 0 0 0 0 0 0 0 0 0 0 1 1 0 0 0 0 0