The Board, acting on the recommendation from the Investment Committee, approved a reduction in the trust payout percentage from the current annual rate of 5% to 4.75% effective for fiscal year 2017 (July 1, 2016 – June 30, 2017) and then a second reduction to 4.5% for fiscal year 2018. The Investment Committee based their recommendation after considering recent UUCEF performance results and a forecast of market performance prepared by our outside consultants, NEPC. The Board also approved a decrease in the UUA endowment spending policy over the next two fiscal years.
The initial change to beneficiaries of trusts administered by the UUA will be effective with distributions based on September 30, 2016 valuations (payment in mid-October 2016). The final fiscal 2016 payment based on the June 30, 2016 market valuations will be the last one using the current distribution percentage. The calculation of market value used for the basis of the payment will continue to be based on a moving thirteen quarter market value average. (Note – trusts with specific payment restrictions or other provisions will be governed by the trust document that may differ from this overall policy change.)
If you have questions about this policy change please contact Tim Brennan, Treasurer and Chief Financial Officer, or Susan Helbert, Assistant to the Treasurer.