The University Record, March 22, 1999

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, purchases, 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 5.0% (annual rate) of the twelve-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, please contact the Treasurer's Office at 763-1299.

Investment Managers

Publicly Traded Equities: Artisan Partners; Benson Associates; Capital Growth Management; City of London; Grantham, Mayo, Van Otterloo; Marathon Asset Management; Marvin & Palmer Associates; Skyline Asset Management.Fixed Income Managers: Tattersall Advisory Group; STW Fixed Income Management.Investment Management Consultant: Cambridge Associates.

Shareholders' Report Sept. 30, 1998

Market Value per Share
Mar. 31, 19986.1563660
June 30, 19986.1003200
Sept. 30, 19985.4840323
Dec. 31, 19985.9239310
Distribution per Share
June 30, 19980.065
Sept. 30, 19980.067
Dec. 31, 19980.068
Mar. 31, 19990.069