Strong investment return, 43.6% total return on portfolio

ANN ARBOR—The University of Michigan closed its fiscal year
“Our return this year is most striking,” Kasdin noted, “and it places the University comfortably in the top quartile of endowment portfolios for the year, based on a survey of 279 endowments by Cambridge Associates. Solid performance in several asset classes combined to create the high aggregate return.

“This is the second year in a row that the University has been a top-quartile performer. The University is now in the top quartile of investment performance for the one-, three- and five-year periods.”

Cambridge Associates is a Boston-based investment adviser that specializes in higher education and other nonprofit institutions across the country.

“The University,” according to L. Erik Lundberg, chief investment officer, “continues to focus carefully on the investment profiles of the Long Term Portfolio in a manner that emphasizes appropriate risk levels while maximizing total return over time.” Lundberg joined the University in October 1999.

As of June 30, the University’s endowment fund was valued at $3.5 billion.

The size of the endowment ranked 17th among endowments of higher education institutions and the fourth largest of a public university. “Growth in this fund is a result of the generosity of our alumni, as well as an extremely favorable investment environment,” Kasdin noted. “This clearly signals that the University takes its stewardship responsibility with the highest degree of seriousness and professionalism.”

Among public universities, as of
The U-M also this past year reconstituted its Investment Advisory Committee “to assist the investment staff with strategic investment issues,” Lundberg added. “Each of the nine alumni members of the committee have been asked to serve because of their expertise in some aspect of capital markets.” They are: David D. Alger; Terrence A. Elkes; Beverly Hamilton; J. Ira Harris; Jay C. Hoag; Robert C. Jones; Michael Levitt; Sanford R. Robertson; and Joshua Rosenthal.

“The committee’s advice influences the advice given to the Board of Regents with respect to investment decisions,” Kasdin noted. “The Regents retain authority of the investment of the University’s financial assets.”

For a copy of the Investment Report, contact the Investment office, (734) 615-4445.

Cambridge AssociatesLundberg joined the University