INSPIRATION UNDERSTANDING SUCCESS INGENUITY INNOVATION

William J. Stewart Endowed Chair in Dentistry

William J. Stewart Endowed Honors Scholarship

William J. and Marie R. Stewart Endowed Support Fund

as of September 30, 2007

UNIVERSITY DEVELOPMENT UAB Development Office

December 1, 2007

Mr. and Mrs. William J. Stewart 2909 Meriweather Lane Birmingham, Alabama 35242

Dear Marie and Billy: I would like to once again thank you for your generous gifts and continued interest in UAB, and I am pleased to write to you today to bring you up to date on the current status of the William J. Stewart Endowed Chair in Den- tistry, the William J. Stewart Endowed Honors Scholarship and the William J. and Marie R. Stewart Endowed Support Fund. This stewardship report includes a brief overview of each fund, an investment report and some highlights of the University that I thought you might enjoy. These endowments provide critical to support to our University. They also serve as constant reminders of your dedication to the growth of the School of Dentistry and the UAB Honors Program. I hope you are as pleased as we are with the way these funds have grown since inception and continue to make a tremendous difference in the lives of our students. Marie and Billy, on behalf of everyone these endowments have and will touch, please accept our heartfelt ap- preciation. If you have any questions about the report, please do not hesitate to call Daphne Powell, Major Gifts Officer for Stewardship, at (205) 934-1807 or email her at [email protected], and she will be glad to assist you. My warmest wishes remain with you.

Sincerely,

Shirley Salloway Kahn, Ph.D. Vice President of Development, Alumni and External Relations

SSK/dbp UAB Development Office William J. Stewart Endowed William J. and Marie R. Stewart Chair in Dentistry Honors Program Endowed Support Fund Date Established: 2/18/00 Date Established: 6/22/01 Current Occupant: Peter D. Goodkin, D.M.D.

Occupancy Date: 6/15/05 Principal: $1,500,000 1 Principal: $1,000,0001 Market Value: $2,123,998 2 Market Value: $1,345,763 2 Projected Spendable Earnings for FY 2006/07: $98,313 3 Projected Spendable Earnings for FY 2006/07: $59,443 3 Purpose: Purpose: The William J. Stewart Endowed Chair in Dentistry provides tremendous support to the School of Dentistry. This fund is The William J. and Marie R. Stewart Honors Program En- currently being used to retain Dr. Peter D. Goodkin, an inter- dowed Support Fund provides critical support to the Univer- nationally known researcher and educator who is an expert in sity Honors Program by supporting the Program’s mission of the field of dentistry. offering innovative and interdisciplinary curriculum specially designed for exceptional students. This endowment enables

the Honors Program to fund student research; visiting lectur- Dr. Peter D. Goodkin is Professor of ers; education travel experiences such as state, regional and Dentistry and he received his dental national conferences; writing workshops; and various other degree from the University of Min- student enrichment activities. nesota and his dental degree from the UAB School of Dentistry. Dr. Good- kin is board certified by the Ameri- can Board of Oral and Maxillofacial Surgery and the American Board of Cosmetic Surgery. He served as president of the American Academy of Cosmetic Surgery and editor of Peterson’s Principles of Oral and Maxillofacial Surgery.

Dr. Goodkin has clinical expertise with impacted teeth, ortho- graphic surgery, craniofacial cleft lip/palate, facial reconstruc- tion, cosmetic surgery, sleep apnea, and dental implants. William J. Stewart Endowed Honors Scholarship

Date Established: 6/22/01

Principal: $27.413 1 Market Value: $32.835 2 Projected Spendable Earnings for FY 2006/07: $1,470 3 2006/07 William J. Stewart Scholar

Rachel A.Davis (pictured right) Academic Classification: Senior Major: Biology Rachel is from Birmingham, Alabama. She enjoys participat- ing in intramural sports and volunteers for the UAB Chapter of Habitat for Humanity. Rachel works as a recruiting coordinator for the Cardio Study of UAB’s Preventive Medicine Clinic. After graduation, Rachel plans to enter the master’s program in the School of Public Health to work toward her degree in epidemiol- ogy before enrolling in medical school. Rachel is very grateful for being awarded this generous scholarship for all four years of her undergraduate education.

A Message from Rachel “I am very thankful to be the recipient of this scholarship for all four of my undergraduate years. I have thoroughly enjoyed my time at UAB and in the University Honors Program. I will be starting in the epidemiology master’s program in the fall in the UAB School of Public Health. I would like to thank the Stewart Family for their support of my education.”

1. Contributions may be added to endowment principal at any time. 2. Market value is the principal and reinvested earnings plus market appreciation. 3. The projected spendable earnings amount was calculated using 5% of a moving market average of the unit value of the university system’s Pooled Endowment Fund for the previous twelve quarters ended December 31, 2006. UAB Development Office

Investment Report As of September 30, 2007, the market value of the In 1978, the University’s Board of Trustees created The UAPEF was $990.4 million. Of this amount, 35.6%, or University of Alabama Pooled Endowment Fund (UAPEF) $352.6 million, is attributable to UAB and the Hospital. managed by the Chancellor’s Office. The Board adopted an As state assistance shrinks and the costs of higher educa- tion rise, endowment support becomes more critical to the investment policy and established an Investment Committee, University’s growth and ability to maintain its standards of which oversees investment activities, monitors performance of excellence. professional money managers, and ensures the prudent control Asset Allocation of the investment of funds. The Investment Committee is re- The Board seeks superior investment returns through sponsible for recommending investment objectives and policies professional money management. Assets of the UAPEF are and for implementing such policies. The Board seeks to enhance managed by 25 professional investment firms. The UAPEF the value of individual endowments by pooling these assets. A also has an investment consultant, Hammond Associates, pool of assets provides more options for investment, stronger with expertise in investment policy development, spending diversification, superior returns and lower management fees. policy analysis, manager evaluation and selection, and per- formance evaluation. The Board believes multiple external The UAPEF had a ten year annualized investment return of managers provide (1) greater diversification of investment 8.7% for the period ending December 31, 2006, compared to a philosophy, judgment, investment opportunity and risk return of 8.2% for the custom index .* For the quarter ending exposure; (2) a positive influence on performance through September 30, 2007, the UAPEF posted a 3.0% return. The long-term competition; and (3) a broader basis on which to Board of Trustees is committed to a diversified investment compare and judge investment performance. strategy in order to preserve the real purchasing power of the principal and to provide a stable source of perpetual financial *The Custom Index reflects a blend of 55% S&P 500 Index, 15% MSCI EAFE Index, 15% Leh- man Aggregate Index, 5% NCREIF Index, and 10% 90-Day T-Bill+3%. Prior to third quarter support to the University. 2004, the Custom Index reflected the Pooled Endowment Fund’s previous asset allocation.

UAPEF Rates of Return: 12/31/97-12/31/06 UAPEF Growth in Endowment Funds September 30, 1997-2007

Asset Allocation at 9/30/07

UAB Development Office UAB Development Office

UAB Highlights The UAB School of Education was among three universities nationwide awarded $500,000 from the NSF to pilot Outstanding Programs and Students the Bridge to Teaching program. The program aims to increase UAB is among 165 schools in the Princeton Review’s the number of minorities certified to America’s Best Value Colleges. Students comment that UAB is a teach high school science, math, “mecca of multiculturalism....our professors are very knowledge- and technology. able....opportunties for internships abound....this administration is really bending over backwards to improve every aspect of UAB.” the UAB university Hon- ors Program provides gifted The University recently completed a and highly motivated students re-accreditation process with the Southern Association of Colleges with an innovative interdisciplin- and Schools (SACS). SACS reviewed UAB’s Quality Enhancement ary course of study. Students in Plan (QEP), which is focused on improving fundamental learning the program have won the Rho- competencies at the undergraduate level. The QEP calls for im- des, Marshall, Truman, Goldwa- proved student learning in writing, quantitative literacy, and ethics ter, and Fulbright awards, as well and civic responsibility. The review team said UAB’s program was as NSF fellowships. The program so well conceived that they recommended no changes. SACS is us- receives 200 applications each ing UAB’s program as a model for other schools. year for 50 freshmen slots.

The 2007 UAB Discussion book is All Over but the Shou- the UAB Science and Technology Honors tin’ by Alabama Native Rick Bragg. The author recounts his Program, implemented in 2005, childhood and how he overcame a life of wage labor, alcohol- offers research opportunities and ism, and petty crime in his North Alabama hometown. Once mentoring in the sciences, provid- again, all incoming freshmen received a copy of the book and ing training for the scientists of participate in discussion groups to promote understanding tomorrow. The program enrolled values of people who might otherwise be regarded as foreign 27 new freshmen in fall 2007. because of regional, class, ethnic, or religious differences. the new global and com- Eight out of the last ten years, a UAB School munity leadership hon- of Business graduate has achieved the highest score in Ala- ors program has bama on the CPA Exam five times. UAB graduates achieve admitted students for the 2007- first-time pass rates on the CPA exam that are 30 percent 2008 school year. This new pro- higher than the national average, and they pass the Chartered gram is designed to provide learn- Financial Analyst exam at a rate 20 percent higher than the ing experiences related to global national average. and community issues in order to prepare its students for leadership The National Science Foundation (NSF) awarded roles on the local, national, and global levels. $10 million to UAB in an effort to teach innovative methods of middle school math instruction through the schools of Education, the School of optometry, which is ranked fourth Engineering, and Natural Sciences and Mathematics. among the nation’s 17 optometric institutions in funding from the National Institutes of Health (NIH), was named the Nation- UAB hospital was listed among the nation’s 233 top hospi- al Optometric Association “School of the Year” for 2006. tals in the 2007/07 Consumer Choice Awards by The National Research Corporation. The award is given in terms of consumer The 155 members of the School of Medicine’s perceptions of quality and image. 2007 graduating class will undergo their residency training at hospitals from New England to California, with nearly three- The UAB school of engineering was awarded a $3 mil- quarters remaining in the Southeast. Forty-three percent will lion grant from the Department of Defense to research methods to remain in Alabama, and 40 percent will conduct their residency extract oil using carbon dioxide. training in one of the primary care fields. In 2007, 15 UAB Student the UAB department of music has been named Athletes received Conference USA an All-Steinway School. The department dedicated 32 Commissioner’s Academic Medals for Steinway Pianos earning a cumulative 3.75 grade point purchased from average during the 2006/2007 Forbes Piano Com- academic year. pany in Birmingham on September 10, since 2002, UAB has 2007. There are 72 produced seven Alpha Lambda All-Steinway Schools Delta Scholars, five Barry M. Gold- in the United States, water Scholars, four Phi Kappa Phi with UAB being one Fellows, and two Harry S. Truman of only two in the Scholars. Just in the past year, there State of Alabama. have been three Fulbright Scholars, bringing the total awards to six. The UAB School of Dentistry class of 2006 ranked number one in the The School of Natural Sciences and Math- country on Part II of the national board exams. The cumula- ematics received a $1.35 million NSF grant to develop next tive average of the class was 85 percent higher than the national generation hip, knee, and joint replacements. average. Forty percent of the graduating class will pursue advanced dental training, and 59 percent will either begin a THE UAB SCHOOL OF ENGINEERING was awarded a $3 mil- private practice, partnership, or lion grant from the Department of Defense to research methods to associateship. extract oil using carbon dioxide. public radio stations 90.3 WBHM-FM Birmingham The UAB Mock Trial Team in the Department of Justice and 91.5 WSGN-FM Gadsden have been honored with numer- Sciences recently placed fourth at the National Mock Trial Tour- ous local and regional awards from respected broadcast journal- nament. Both the Green and Gold teams won bids to the national ism organizations across the country, including six Edward R. tournament. Team Captain Elizabeth Blair won the All-American Murrow awards from the Radio and Television News Directors Attorney trophy with a perfect score. The team is part of the pre- Association. law program in the School of Social and Behavioral Sciences under the direction of John W. Grimes, J.D. UAB Hospital was listed among the nation’s 233 top hospi- tals in the 2006/07 Consumer Choice Awards by The National The UAB School of Nursing will begin a new intensive Research Corporation. The award is given in terms of consumer speed track to earn a master’s degree in nursing for people with a perceptions of quality and image. bachelor’s degree in any field. The UAB Health System will help launch the program in summer 2008. The program expects to best doctors in america lists 215 UAB physicians in graduate 45 nurses annually in addition to the 150 students receiv- its latest edition. UAB faculty and physicians ing degrees from the existing bachelor’s and master’s comprise 85 percent of the 253 Birming- programs. ham metropolitan area medical specialists in the latest list. U.S. News & World Report has ranked the UAB School of Health Professions master’s in Health Care The school of medicine had five Management program 7th followed by Public Health’s medical specialities that ranked in the graduate program in 16th and nursing in 26th. top 20 nationally by U.S. News & World Report . These specialties include AIDS, the school of public health’s Deep South women’s health, internal medicine, geri- Center for Occupational Health and Safety has received atrics, and pediatrics. The School is also a $1.2 million funding continuation for another five ranked 34th in the primary care category, years of research from the NAtional Institute for Occu- ahead of Mayo Medical School and Emory pational Safety and Health (NIOSH). The Center is one University. of only 16 in the U.S. to be funded by the NIOSH. UAB Development Office UAB - A Research Powerhouse The NIH has picked UAB as one of just five in-

stitutions nationwide—and UAB has doubled research funding every decade the only university in the since 1969. Today, UAB receives more than $460 million in grants Southeast—to lead a massive, and contracts—funds that will turn over hundreds of thousands of national research assault on additional dollars in patents, licenses, and spin-off revenue. congestive heart failure. UAB

is receiving $18 million to In terms of federal research and development fund- fund a Specialized Center of ing, UAB ranks 26th nationally and first in the State of Alabama, Clinically Oriented Research receiving more funding than all Alabama universities combined. In (SCCOR), program focusing such an environment, undergraduate students can pursue a wide specifically on heart failure array of research opportunities and gain valuable experience. research.

The newly opened Richard C. and Annette N. The School of Dentistry was one of three schools Shelby Interdisciplinary Biomedical Research Building is a state- selected for a $25 million grant from the NIH to lead a national of-the-art facility that will generate $100 million in new grants and effort to improve dental care. This grant is one of the largest ever has created approximately 1,400 jobs. awarded for a single, seven-year study.

The Evelyn F. UAB was named home to one of only eight Advanced McKnight Brain Centers for Parkinson Research by the American Parkinson Dis- Institute at UAB has been ease Association, Inc. Parkinson research has been a priority at made possible by a generous gift UAB since 2003, with the creation of the Parkinson Disease and from the McKnight Brain Re- Movement Disorder Research Program. search Foundation and is located in

the Shelby Building. The Institute The Center for Biophysical Sciences and Engi- promotes research and investiga- neering was awarded a NASA contract for phase two devel- tion of the brain in the fundamen- opment of a cryogenic freezer, called the General Laboratory tal mechanisms that underlie the Active Cryogenic ISS Experiment Refrigerator, or GLACIER, for neurobiology of memory, with a use aboard the International Space Station (ISS). clinical relevance to the problems

of age-related memory loss. The School of Social and Behavioral Sciences

received an $8.5 million grant to research homelessness and sub- uaB’s school of medicine was recently stance abuse in Birmingham. In addition, the School received the awarded a 5-year, $11.5 million SPORE grant for breast cancer largest HUD fellowship grant ever received by UAB to recruit research. students into public service careers.

The UAB Comprehensive Diabetes Center, which is The School of Health Professions ranks first in also housed in the Shelby Building, will provide diabetes research NIH funding, which maintains the School’s record of and treatment programs in an effort to treat 26 consecutive years in either first or second place. Its and cure the serious and growing national Department of Nutrition Sciences houses one of only health crisis of diabetes. eight federally funded Clinical Nutrition Research

Centers in the United States. UAB has received a four-year,

$4.25 million grant from the NIH’s Nation- UAB was awarded a five-year, $16.3 million al Center on Minority Health and Health grant to support clinical and laboratory research in Disparities. It establishes a Regional Deep the United States, Europe, and Africa to study chang- South Project EXPORT Center of Excel- es that occur in the immune system and in the HIV lence for Minority Health to address this re- virus in people newly infected with HIV. The grant is gion’s significant health disparities relating part of the Grand Challenges in Global Health Initia- to such conditions as diabetes and cancer. tive funded by the Bill & Melinda Gates Foundation.

Local and Regional Impact Vital Facilities Under Construction The University has received the largest gift ever from a UAB’s overall living individual to help construct a new facility to provide im- economic proved care to cancer patients. Thanks in large part to a gift of impact on the $5 million from W. Cobb “Chip” Hazelrig, the Hazelrig-Salter Birmingham Metro- Radiation Oncology Facility will soon become a reality. politan Area reaches over $3 billion, and Construction UAB is responsible has begun on the new for creating some Women & 53,000 FTE jobs Infants Facility that will throughout the state. house obstetrics and gy- For every dollar the state invests in UAB, the University returns necology and the regional $12. neonatal intensive care unit and will be located on UAB made Southern business and development 6th Avenue South between magazine’s top 10 list of universities in the South that drive eco- 17th and 18th streets. nomic development. construction will UAB Research Foundation’s commercialization of fac- soon begin on a Visual ulty discoveries has, since 1986, created more than $31 million in Arts Center to be directly royalty and license fees, 330 licensing agreements, and negotiated across from the Alys Rob- more than $22 million in research agreements for the University. inson Stephens Perform- It has also generated 33 startup companies based on its technolo- ing Arts Center. The Center will have classrooms, studios, a gies and distributed more than $25 million back to the University, lecture hall, exhibition space, seminar rooms, and offices for the its inventors, and its various academic departments. Department of Art and Art History.

The Office for the Advancement of develop- the campus green is now home to the Campus Recre- ment industries (OADI), UAB’s high-tech business ation Center, the Commons on the Green, Blazer Hall to house incubator, has helped start 88 tenant companies since 1986; 46 over 700 freshman, and the new Academic Building which is companies have graduated from the incubator. Together with the scheduled to open in January 2008. Entrepreneurial Center, an economic development organization sponsored by local governments and the private business commu- construction will soon begin on the new Alumni nity, OADI is housed at the Innovation Depot, which is dedicated House. The UAB National Alumni Society has pledged the to helping emerging technology services as well as providing first $1.2 million to start construction on the building that will on-site business consulting, training opportunities, and dedicated be located on 10th Avenue and 13th Street. Internet and Web site hosting. Building Traditions and Community the birmingham regional emergency medical services system (BREMSS) is a The UAB Traditions committee is made model for emergency care systems around the nation. of faculty, staff, students, and alumni to serve The program won a prestigious homeland security as a grass roots group for establishing campus- award presented by Harvard University and Mitretek wide traditions and community spirit. Systems last fall. The inaugural parent develop- for the 2006-2007 season, the alys rob- ment initiative was led by the Student inson stephens performing arts cen- Alumni Association and has raised more than ter achieved its highest tickets sales in the Center’s $7,800 to date for the Campus Green and the 10 years of service to the creative arts community. A UAB Traditions Campaign. record 22 shows were sold-out. KNOWLEDGE SPIRIT ACHIEVEMENT DISCOVERY OPPORTUNITY VISION

UNIVERSITY DEVELOPMENT

Daphne B. Powell Director of Development for Stewardship AB 1270J 1530 3rd Avenue South Birmingham, Alabama 35294-0112

205.934.1807 [email protected]