The saying is "follow the money," but at UNC and many public universities it isn't that simple.
Many of the campus resources and scholarships that we use every day are funded not just by donations and tuition, but also by financial returns on the University’s endowment wealth that the University controls.
From facilities to scholarships and honor societies, many UNC institutions are made possible by wins on the stock market. The University’s endowment, housed in the UNC Management Company, invests the funds of the endowment in various companies and industries.
For the past few years, campus environmental groups have campaigned to compel the University to divest from coal and reinvest in sustainable energy companies.
But how many of the students that use these resources every day know what, exactly, our university’s money is funding? Who can name a single company that benefits from UNC investments?
Back in 1998, Mark Yusko came to UNC to head up the the endowment. He was brought in because, he said, former Chancellor Michael Hooker “was tired of losing every year to Duke. Not in basketball or football but investing.” When he tore into the position with the idea of transitioning from traditional stocks and bonds to energy investments, he encountered firm resistance from University administrators.
After a few years of operating the fund within the confines of the bureaucracy, he distanced the endowment from the University administration, creating the UNC Management Company in 2002. The nonprofit fund manages UNC-Chapel Hill’s endowment and the $4.5 billion fund that represents all schools in the UNC system.
UNC Management Company releases end-of-year reports, detailing the industries it invests in. But, notably, the reports include no details about specific companies or regional distribution of investments. While this may be standard practice for private universities and organizations, we expect and need more from our public institution.
And that’s because we all have a stake in how this money is invested. With a public university supported by our state legislature, North Carolinians should know what our UNC system invests its money in.