About the University of Nevada, Reno Foundation - Asset Management
About | Financial Statements | Board | Asset Management | Meeting Schedule | Investment Committee Policy | Underwater Spending PolicyThe University of Nevada, Reno Foundation endowment funds are responsibly managed by the Commonfund, an independent non-profit investment firm which specializes in college and university endowments. As of June 30, 2008, the funds were invested at the ratio of 69.63% in equities, 21.75% in fixed income, and 8.62% in real estate and alternative investments. The goal of this allocation is to produce a return that meets spending obligations, maintains or increases the real value of the endowment, and protects against the effects of inflation.
For the period July 1, 2007, through June 30, 2008, the Foundation had a net return of
-1.4%, compared to the S&P 500 Equity Index at -13.12% and Lehman Brothers Aggregate Fixed Income Index at 7.12% for the same period of time. As of June 30, 2008, our three-, five-, and ten-year overall average rate of returns for the endowment, net of fees, were 8.37%, 10.66% and 6.15% respectively. While we are disappointed to report negative returns, we were pleased that our diversified portfolio mix positively assisted us during these turbulent financial times.
The Foundation continued to set aside 5% of the 12-quarter averaged market value for distribution purposes as outlined in the Foundation’s investment policy. An annual one percent management fee is assessed on the Foundation’s endowment each year for administrative expenses associated with managing the endowment funds except in cases where the market value of an individual fund is less than the amount of all contributions to the fund. The Foundation’s policy is administered in accordance with the Uniform Management of Institutional Funds Act. The Investment Policy of the Foundation can be found on the University’s website at: http://giving.unr.edu/foundation.aspx.
We are confident that our prudent, rational, long-term investment strategy meets the needs of both our donors and the purposes for which they established their fund at the University of Nevada, Reno.