The major portion of the investments of the endowment and similar funds is pooled under two major funds. The Consolidated Endowment Fund is the general endowment pool for the University. The University has adopted an investment objective whereby the average annual return over the long term should equal the rate of inflation (measured by the Consumer Price Index) plus its average level of spending from endowment income. The annual return for the Consolidated Endowment Fund was 3.6 percent in 1994 and 18.1 percent in 1993. These percentages have been computed using realized and unrealized gains and losses and investment income. The rate of inflation plus the average level of spending from endowment income was 6.7 percent in 1994 and 7.2 percent in 1993.
The Eminent Scholars Fund is the second major pooled fund. The primary investment objective of this fund is to earn a return each year that meets current spending requirements and maximizes participation by the Commonwealth of Virginia in the Eminent Scholars Program. The annual return for the Eminent Scholars Fund was 3.1 percent in 1994 and 14.5 percent in 1993. These percentages have been computed using realized and unrealized gains and losses and investment income. Current spending requirements were 5.7 percent in 1994 and 5.5 percent in 1993.
Both the Consolidated Endowment Fund and the Eminent Scholars Fund are pooled using a market value basis, with each individual fund subscribing to or disposing of units (permanent shares) on the basis of the market value per unit at the beginning of the calendar month within which the transaction takes place. A summary of endowment and similar funds at market value as of June 30 is presented below:
| Endowment and Similar Funds, 1994 (in thousands) | ||||
| Consolidated Endowment Funds | Eminent Scholars Funds | Separately Invested Funds | Total | |
| Cash and Equivalents | $ 26,771 | $ 2,350 | $0 0,95 | $029,216 |
| Mutual and Money Market Funds | 75,798 | -- | 3,844 | 79,642 |
| U.S. Government Securities | 62,626 | 20,546 | 1,313 | 84,485 |
| Corporate and Municipal Bonds | 13,983 | 819 | 429 | 15,231 |
| Corporate Notes | 9,514 | 5,407 | 834 | 15,755 |
| International Bonds and Notes | 16,752 | -- | -- | 16,752 |
| Common and Preferred Stocks | 214,051 | 57,850 | 8,165 | 280,066 |
| Advances to Foundations (Note 3c) | -- | -- | 36,328 | 36,328 |
| Real Estate and Other Tangible Property | -- | -- | 404 | 404 |
| Mortgages | 11,553 | -- | -- | 11,553 |
| Other Intangible Property | 98,334 | -- | 438 | 98,772 |
| Total Assets | $529,382 | $86,972 | $51,850 | $668,204 |
| Number of Permanent Shares | 553,379 | 315,970 | N/A | |
| Number of Participating Shares | 552,700 | 305,604 | N/A | |
| Market Value Per Share | $ 963.70 | $275.26 | N/A | |
| Earnings Per Share | $ 27.45 | $012.74 | N/A | |
| Distribution Per Share | $ 40.93 | $016.25 | N/A | |
| Investment Income | $015,171 | $03,893 | $ 3,138 | |
| Realized Net Gain | $056,471 | $ 2,709 | $ 342 | |
| Unrealized Net Gain | $ 60,407 | $15,856 | $ 2,026 | |
| Endowment and Similar Funds, 1993 (in thousands) | ||||
| Consolidated Endowment Funds | Eminent Scholars Funds | Separately Invested Funds | Total | |
| Cash and Equivalents | $ 3,602 | $ 2,199 | $ 238 | $ 6,039 |
| Mutual and Money Market Funds | 44,044 | 2,862 | 3,898 | 50,804 |
| U.S. Government Securities | 79,669 | 22,667 | 1,203 | 103,539 |
| Corporate and Municipal Bonds | 9,805 | 53 | 2,116 | 11,974 |
| Corporate Notes | 20,220 | 5,115 | 488 | 25,823 |
| International Bonds and Notes | 27,911 | -- | -- | 27,911 |
| Common and Preferred Stocks | 270,441 | 49,771 | 7,907 | 328,119 |
| Advances to Foundations (Note 3c) | -- | -- | 35,166 | 35,166 |
| Real Estate and Other Tangible Property | -- | -- | 399 | 399 |
| Mortgages | 15,923 | -- | -- | 15,923 |
| Other Intangible Property | 56,915 | 204 | 399 | 57,518 |
| Total Assets | $528,530 | $ 82,871 | $51,814 | $663,215 |
| Number of Permanent Shares | 547,802 | 293,269 | N/A | |
| Number of Participating Shares | 545,420 | 278,651 | N/A | |
| Market Value Per Share | $ 969.84 | $ 282.58 | N/A | |
| Earnings Per Share | $ 832.97 | $ 13.80 | N/A | |
| Distribution Per Share | $ 835.59 | $ 14.30 | N/A | |
|
Investment Income | $ 17,981 | $ 3,846 | $ 4,470 | |
| Realized Net Gain | $ 27,652 | $ 728 | $ 225 | |
| Unrealized Net Gain | $113,134 | $ 19,894 | $ 2,617 | |
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