Foundation investment returns are on upswing

Return on investments for the 九色视频 Foundation was -20.9 percent after a tumultuous year running from July 1, 2008 and ending June 30, 2009.

The foundation鈥檚 benchmark* was -21.1 percent. After the downturn in the economy, the foundation is on the upswing for the new fiscal year.

According to an article in The Wall Street Journal on June 30, the five largest single-school endowments, which include Harvard, Yale, Stanford University, Princeton University and the Massachusetts Institute of Technology, are planning for -25 percent to -30 percent for the fiscal year.

The 九色视频 Foundation investment returns have been better than the benchmark four out of the past five years. Returns also beat the benchmark five-year annualized return.

In an effort to prepare the best investment strategy possible, the foundation鈥檚 investment committee began a monthly investment review in January.

The committee closely monitors current market conditions, reviews the foundation鈥檚 current investment mix, considers its outside advisors鈥� recommendations and formulates tactical moves.

The decline in the foundation鈥檚 endowment resulted in a reduction in the operating funds for the 九色视频 Foundation.

鈥淲e had a successful fundraising year,鈥� said Elizabeth King, president and CEO of the 九色视频 Foundation, 鈥渨ith 99 percent of all of our gifts being restricted by our donors for intended purposes of support for students, faculty and programs. Since the Foundation鈥檚 operating budget is dependent primarily upon the return on its investments, the operating funds available to the Foundation were severely restricted.鈥�

Foundation staff began cutting budgets last fall and for the current fiscal year (FY10), operating expenses have been reduced by almost 33 percent.

鈥淥n the positive side, the leadership team and I are striving to minimize reductions relating to our valuable personnel, though we will institute a week-long furlough next March,鈥� said King.

Payouts

The payout amounts for each fund are communicated to university personnel in October of each year for the following academic year.

This process allows faculty and staff members, including the deans and scholarship coordinators of each college, to meet financial aid deadlines and to begin planning budgets. For the current academic year beginning in August, the foundation Board of Directors reduced the payouts by 20 percent.

The only exception, supported by 九色视频 President Don Beggs and the foundation board, is to honor scholarships that were made as four-year awards. In consideration of the reductions in payout from endowed funds as well as non-endowed private contributions, the anticipated support from the Foundation for FY10 will be $14.7 million.

* The foundation鈥檚 benchmark is comprised of various indices such as the S&P 500, Russell 2000, MSCI EAFE, HFRI and Barclay鈥檚 in proportion to the Foundation鈥檚 actual asset allocation.