| April 2004 | Volume 2, Issue 1 |
ENDOWMENT NEWS
Added options increase investment flexibility for new endowments
Growth, Growth & Income and Income Pools now available
The
Foundation Board of Directors recently expanded the investment pool options
for establishing a new endowment fund. Moving from one to three options,
each pool has varying characteristics of growth, income and volatility.
The Foundation Board chose the two new options after a detailed study was completed to determine what type of investment pools would be most beneficial under the different goals that donors wish to achieve.
Added to the existing Growth Pool are the Growth and Income Pool and the Income Pool. Using the same fund managers, but in different asset allocation combinations, the three pools fulfill different goals.
The Growth Pool can be invested in up to 100 percent equities; the Growth and Income Pool may utilize as much as 50 percent equities; and the Income Pool may use as much as 100 percent fixed income vehicles. Currently the Growth Pool is invested in a 90/10 ratio of equities to bonds, and the Growth and Income Pool is at 70/30. No funds are in the Income Pool at this time, which will be 25 percent equities to 75 percent bonds.
| Foundation Growth & Income Investment Pool Performance, 1/1/03 - 12/31/03 | |||||
|---|---|---|---|---|---|
| 3/31/03 | 6/30/03 | 9/30/03 | 12/31/03 | 12 Months Total Return | |
| Pool Performance | 0.88% | 13.61% | 3.16% | 8.26% | 28.00% |
| Benchmarks | -2.58% | 12.82% | 2.96% | 9.51% | 23.92% |
"The
two new options, along with the existing Growth Pool, provide the flexibility
to meet Foundation goals, as we better fulfill donor expectations," said
Jack Wall, chairman of the Investment Committee of the Foundation Board.
In almost all circumstances, new gifts to the Foundation will be invested in the Growth and Income Pool. The 70 percent equities and 30 percent bonds mix is the most common blended pool used by colleges and universities today. When the donor feels that extraordinary circumstances warrant special treatment, one of the two new investment pool options may be used. The Foundation and UNT’s Office of Development staff are ready to work with donors to determine the best choice of the three pools to accommodate their endowment gifts.•
| UNT Foundation Total Assets and Endowment Market Values - 10 years (Millions) | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| 1994 | 1995 | 1996 | 1997 | 1998 | 1999 | 2000 | 2001 | 2002 | 2003 | |
| Total Assets | $9.80 |
$15.90 |
$19.20 |
$26.90 |
$31.22 |
$39.24 |
$40.11 |
$38.99 |
$33.50 |
$47.99 |
| Endowments | $8.44 |
$11.18 |
$17.76 |
$21.03 |
$21.62 |
$25.30 |
$29.51 |
$30.03 |
$24.45 |
$35.70 |
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Website updated: May 25, 2004 · Website comments or corrections: rsimmans@unt.edu