The University Record, July 16, 1997

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 $1.8 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.

The Shareholder's Report

This brief report is to inform University Endowment Fund participants of the market value of their shares and their distrubutions 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).

Distributions represent a portion of return to participants. Distributions are made at 5 percent (annual rate) 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. It is reflected in the value of endowment shares.

For further information about the endowment investment program, contact the Treasurer's Office, 763-1299.

Investment Managers

Publicly Traded Equities: Capital Growth Management; City of London; Grantham, Mayo Van Otterloo & Co.; Marathon Asset Management Ltd.; Marvin & Palmer Associates Inc.; Qualivest Capital Management Inc.; Skyline Asset Management; and Trinity Investment Management Corp.

Tactical Asset Allocation Manager: First Quadrant.

Fixed Income Managers: Lowe, Brockenbrough & Tattersall Inc.; Rogge Global Partners; STW Fixed Income Management Inc.

Investment Management Consultant: Cambridge Associates Inc.

Market value per share

June 30, 1996

4.9444425

Sept. 30, 1996

5.0324425

Dec. 31, 1996

5.2679926

Mar. 31, 1997

5.2201402

Distribution per share

Sept. 30, 1996

0.056

Dec. 31, 1996

0.056

Mar. 31, 1997

0.057

June 30, 1997

0.058