The University Record, July 8, 1998

Endowment Fund Report

The University Endowment Fund

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 $2.3 billion. It is invested in a highly diversified portfolio of stocks, bonds, private equity, real estate, oil and gas, absolute return investments and cash instruments.

The Shareholders' Report

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).

Distributions represent a portion of return to participants. Distributions are made at 5 percent (annual rate) of the 12-quarter share average. 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; Marathon Asset Management; Marvin & Palmer Associates; Skyline Asset Management; Trinity Investment Management.

Fixed Income Managers: Tattersall Advisory Group, Rogge Global Partners, STW Fixed Income Management.

Investment Management Consultant: Cambridge Associates.

Shareholders' Report March 31, 1998

Market value per share

June 30, 1997 $5.5823603

Sept. 30, 1997 6.0044529

Dec. 31, 1997 5.8706322

March 31, 1998 6.1563660

 

Distribution per share

Sept. 30, 1997 $0.059

Dec. 31, 1997 0.061

March 31, 1998 0.063

June 30, 1998 0.065

Performance As of March 31, 1998--Annualized

1 Qtr

1 Yr

3 Yrs

5 Yrs

10 Yrs

Inflation

0.1%

1.3%

2.3%

2.5%

3.3%

Distribution

1.1

4.3

4.7

4.9

5.1

Total Return Goal

1.2

5.6

7.0

7.4

8.4

Actual Total Return

6.0

23.0

19.1

13.8

12.5

Real Value Added

4.8

17.4

12.1

6.4

4.1

Goal: To protect distributions and share value against inflation.