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 $2.2 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: Benson Associates; Capital Growth Management; City of London; Grantham, Mayo Van Otterloo & Co.; Marathon Asset Management Ltd.; Marvin & Palmer Associates 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

Dec. 31, 1996

$5.2679926

March 31, 1997

5.2201402

June 30, 1997

5.5823603

Sept. 30, 1997

6.0044529

Distribution per share

March 31, 1997

$0.057

June 30, 1997

0.058

Sept. 30, 1997

0.059

Dec. 31, 1997

0.061