Clearly Boldly Unequivocally - The University of Montana Foundation

the gift. The Foundation maintains more than 1,400 distinct funds
that enable donors a great deal of flexibility in identifying how their
donation is employed. UNRESTRICTED GIFTS are made available
to the University for its areas of greatest need. Some unrestricted
gifts fund a small portion of the operations of the Foundation.
CURRENT GIFTS are those in which the donated amount is immediately
available for use. ENDOwED GIFTS are pooled and
invested in the Foundation’s Long Term Investment Portfolio. In
Fixed
Income
13.8%
Alternative
Investments
24.0%
The Investment Committee, acting with the assistance of an outside investment consultant, has
established an asset allocation for use in managing the Foundation’s Long Term Investment Portfolio.
The actual allocation at June 30, 2008, is illustrated above.
Working with its investment consultant, the Committee selects and employs investment managers
and investment vehicles (most often institutional mutual funds) to invest the portfolio within
each asset allocation. The investment performance of the Long Term Investment Portfolio through
June 30, 2008, was as follows:
accordance with its spending policy, 4.25 percent of amounts so
invested are made available for spending for a use designated by the
donor at the time of the gift.
As the table (at the bottom of page 57) illustrates, for the fiscal year
ended June 30, 2008, the Foundation distributed $12.4 million
to fund scholar ships, academic support and facilities and equipment.
Disbursement levels vary from year-to-year depending upon donation
levels as well as the timing of University needs.
FOUNDATION
INVESTMENTS
International
Equity
24.2%
Mid-Cap
Large-Cap
Equity
19.8%
Equity
18.2%
The University of Montana Foundation
Board of Trustees, through its Investment
Committee, oversees the management
Asset Allocation at June 30, 2008
of the Foundation’s Long Term Investment
Portfolio and Operating Funds Portfolio.
The Board’s investment policy for
these portfolios is outlined in the Statement of Investment Objectives and Guidelines. The policy
for the Long Term Investment Portfolio is designed to provide a stable, predictable and growing
stream of investment income for current use while preserving (after inflation) earnings power of
the Foundation’s endowment assets for the future.
58
Investment Results for the Period Ending June 30, 2008
BALANCE 1 YR 3 YR 5 YR
Long Term Investment Portfolio $119,955,000 -6.6% 6.6% 7.8%
Common Index -5.2% 4.3% 6.1%
The Common Index is comprised: 60% S&P 500 Index and 40% Lehman Brothers Aggregate Bond Index.
Investment Managers
at June 30, 2008
Large-Cap Equity
Vanguard S&P 500 Index
Mid-Cap Equity
AXA Rosenburg Small/Mid Cap
Vanguard Mid Cap VIPERS
International Equities
Artisan International
DFA International
Small Cap Value
DFA International Value
Vanguard Total
International Stock
Fixed Income
Pacific Income Advisors
Alternative Investments
Hedge Funds
Common Sense
Partners Offshore
Pine Grove Offshore Fund
Private Equity
Coller International
Partners V
Commonfund Capital
Natural Resources VII
Q-BLK Real Assets II
Siguler Guff Dristressed
Opportunities Fund III
Northgate IV
Amberbrook V
Real Estate
Cohen & Steers Global
Real Estate Securities
Diversified
PIMCO All Assets