| Date: | March 12, 2008 |
| From: | Mike Treiber, Assistant Comptroller Patrick O'Connor, Investment Manager |
| Subject: | UA Endowment Funds Market Value Reports |
The semi-annual report on endowments for your department/college is available on the FSO Information Services Web. The report includes an estimate of the endowment payout for FY2009.
For fiscal year 2008-09, the payout rate will remain at 4.00%. The payout rate for endowments in the Growth/Income Pool will be applied to the 36 month average market value of the Growth/Income Pool for the period ended December 31, 2007. This payout rate will be converted to an amount per share in the Growth/Income Pool and will be $.73469 per share distributed monthly. This is a 6.6% increase over the monthly per-share payout for fiscal year 2007-08.
If funds are added to or deducted from the corpus of the endowment, the actual amount distributed will change according to the number of shares sold or bought. The estimated payout shown on the report for endowments invested in the Growth/Income Pool assumes no additions to or deductions from the endowment.
For separately held permanent endowments, the payout will be 4.00% of the December 31, 2007 market value. The payout for separately held quasi endowments will be actual earnings. For separately held endowment funds invested in overnight funds (cash), the payout will be actual earnings. All payouts are net of administrative fees. For fiscal year 2008-2009 the administrative fee on SepHeld endowments will remain at 1.25%.
Endowment funds are invested for the long term. As is the case with any investment portfolio, normal market cycles will dictate short term fluctuations in the market value of your endowment. The University manages stock market volatility by maintaining a diversified portfolio, which includes stocks, bonds, real estate, commodities and other investments. If you have questions concerning investments, please contact Patrick O'Connor, Investment Manager, at 621-7780, e-mail at oconnorp@arizona.edu.
If you have questions concerning this report or your endowments, please contact Mike Treiber at 621-8040; e-mail at treiberm@arizona.edu, Marlene Moldenhauer at 626-4804; e-mail at moldenhauerm@arizona.edu, or Marilyn Overpeck at 626-3895; e-mail at overpeckm@arizona.edu
| Date: | December 2007 |
| From: | Mike Treiber, Assistant Comptroller Patrick O'Connor, Investment Manager |
| Subject: | UA Endowment Funds Donor Reports, June 30 2007 |
The Financial Services Office, Endowments section has produced donor reports for 656 endowments at the University of Arizona. The reports provide a summary of the financial activities of the endowment account and corresponding expendable account for the fiscal year ended June 30, 2007 (FY07). The endowment report for your department/college is available on the FSO Information Services Web (ISW).
In addition to providing information to the departments, these reports are intended to aid development officers in soliciting additional funds, and in providing information to donors. The payout rate for endowment accounts for FY07 was 4% based on a three-year average market value, with adjustments made for additions and deductions from the endowment corpus. Funds are distributed monthly to endowment expendable accounts.
The endowment returns for the 1, 3 and 5 year periods are net of all internal and external management fees and are as follows:
FY07 – 15.86%
3 year – 11.96%
5 year – 10.19%
For FY07, the endowment exceeded our benchmark (targeted rate) for the year. Due to the large volume of individual donor reports, they are available via the Information Services Web (ISW). The title of the electronic report is DONORRPTS - Donor Reports, and can be found under the Report Folder, UA Endowments Market Value Rpt.
If you have questions regarding the investment of your endowments, please contact Patrick O’Connor at 621-9207; e-mail at oconnorp@arizona.edu. For questions regarding endowment reports, please contact Marilyn Overpeck at 626-3895; email at overpeckm@arizona.edu
All contents copyright © 2006. Arizona Board of Regents.
