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.