The University Record, March 7, 1994

ENDOWMENT FUND REPORT

The University Endowment Fund is an investment pool for hundreds of endowment funds and funds functioning as endowment. Purchase, redemption and distribution all are calculated based on a participant’s share holdings, as they are calculated in a mutual fund.

The fund is valued at approximately $912 million. It is invested in a highly diversified portfolio of stocks, bonds, mortgages, real estate, oil and gas, reorganization investments, venture capital, and cash instruments.

The University’s Investment Office issues a quarterly shareholders’ report to inform Fund beneficiaries of the market value of their shares and their distribution per share on the Fund’s investment performance. The investment results shown represent total return, which includes both ordinary income and capital gains (losses).

In the past, participants have received only information on total returns of which distributions are a part. Distributions are made at 5.5 percent of the 12-quarter average share value. The other component of return—reinvested capital gains and, to the extent available, reinvested income—is essential to protecting endowment gifts and endowment distributions against inflation.

For additional details, call the Investment Office, 763-1299.