The University Record, September 25, 1995

ENDOWMENT FUND REPORT

The University Endowment Fund is an investment pool for hundreds of endowment funds and funds functioning as endowment. As with a mutual fund, purchase, redemptions and distributions are all calculated based on a participant’s share holdings. The fund is valued at $1.3 billion. It is invested in a highly diversified portfolio of stocks, bonds, mortgages, real estate, oil and gas, reorganization investments, venture capital and cash instruments.

This brief report is to inform University Endowment Fund participants of the market value of their shares and their distributions per share. It also provides information on the investment performance of the fund. The investment results shown represent total return, which includes both ordinary income and capital gains (losses).

This report is intended to communicate 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.

The University’s investment managers are:

Common Stock Managers—Capital Growth Management; the Common Fund Emerging Markets Fund; Grantham, Mayo, Van Otterloo & Co.; GMO Emerging Country Debt Fund; Trinity Investment Management Corp.; Marathon Asset Management Ltd.; and Marvin & Palmer Associates Inc.

Tactical Asset Allocation Manager—First Quadrant.

Fixed Income Managers—The Common Fund Global Bond Fund; Lowe, Brockenbrough & Tattersall Inc.; and STW Fixed Income Management Inc.

Investment Management Consultant—Cambridge Associates Inc.

Market Value per Share

Sept. 30, 19944.20209761
Dec. 31, 19944.08741902
March 31, 19954.16480068
June 30, 19954.40660777
Distribution per Share
Dec. 31, 19940.056
March 31, 19950.056
June 30, 19950.056
Sept. 30, 19950.056

Performance as of June 30, 1995

Goal: To protect distributions and share value against inflation.

Annualized1 quarter1 year3 years5 years
University Endowment Fund7.1%12.4%10.9%10.5%
Standard & Poor’s 5009.526.113.312.1
Lehman Govt/Corp Bond Index5.318.811.512.9
Consumer Price Index0.83.02.73.2