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The Endowment

Ten Year Perspective on Endowment

June 30, 2010

Over the past 160 years the University of Rochester received many thousands of gifts to its endowment, amounting to hundreds of millions of dollars. These gifts offer perpetual, and growing, support for the University's faculty, students and programs.

Compounding the value of these gifts through reasonable investment performance creates substantial, and sustainable, support for our faculty and students. As an example, Rochester's endowment spending for the past decade, after deducting all investment management expenses, was $770 million. This figure is approximately $160 million in excess of spending if investment performance was at the benchmark (consisting of 80% public equities and 20% bonds) and approximately $100 million in excess of spending if investment performance was at the close peer group mean. Despite the difficult economic conditions in recent years, Rochester's long term investment pool (“LTIP”) not only provided the support described above but also increased in value by approximately $300 million over the last decade, from $1.2 billion to $1.5 billion. Contributions to the endowment were a significant factor in this growth. Gifts and additions to the LTIP for the decade amounted to $392 million*, with annual endowment gifts in recent years approaching peer mean, after a bottom ranking among peers 10 year earlier.

As the University nears the start of the public phase of its Capital Campaign, its many donors should gain comfort in knowing that the work of the Board of Trustee's Investment Committee and the University's Investment Office are having a positive impact on Rochester's future.

*This figure includes additions from foundations and planned gifts into the Long Term Investment Pool (LTIP), with endowment and similar funds accounting for approximately 90% of the value of the LTIP.