Rochester's net return for the fiscal year ending June 30, 2005 was approximately 12.7% (preliminary, un-audited), substantially above the 8.0% goal contained in the University's financial plan. It is above the benchmark return of 9.1% (comprised of 60% Wilshire 5000, 20% Lehman Aggregate and 20% EAFE).
The investment pool value at the end of the fiscal year was approximately $1.37 billion, roughly $132 million above the reported value at the beginning of the year. The change in value was attributable to investment returns of $154 million, gifts and additions of $53 million and spending and withdrawals of $75 million. Rochester's five-year average annual return through June 30, 2005 is 5.9% vs. 0.7% for the benchmark. The ten-year average annual return through June 30, 2004 is 11.2% vs. 8.4% for the benchmark.
Major asset classes generated the following performances in fiscal year 2005:
The investment office monitors peer endowments and expects that this effort will continue to produce similar asset allocation and investment approaches for Rochester's endowment. Early reports from Rochester's peers suggest that returns achieved by large endowments in fiscal year 2005 will range from low teens to above 20%. 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.
|Robert M. Osieski
Trustee, Chairman of the
|Douglas W. Phillips
Senior Vice President for