Rochester’s net return for the fiscal year ending June 30, 2006 was approximately 14.0%, substantially above the 8.0% goal contained in the University’s financial plan. It is above the benchmark return of 10.9% (comprised of 60% Wilshire 5000, 20% Lehman Aggregate and 20% EAFE).
The endowment value at the end of the fiscal year was approximately $1.52 billion, roughly $135 million above the reported value at the beginning of the year. The change in endowment value was attributable to investment returns of $189 million, gifts and additions of $31 million and spending and withdrawals of $85 million. Rochester’s five-year average annual return through June 30, 2006 is 8.5% vs. 5.6% for the benchmark. The ten-year average annual return through June 30, 2005 is 10.9% vs. 7.8% for the benchmark.
It is important to note that Rochester’s return was generated through the efforts of many talented advisors, investment committee members, consultants and investment office staff. It is the consensus of these groups that, over time, the University of Rochester’s target return of 8% per annum is achievable.