Note1: Endowment and Similar Funds


The major portion of the investments of the endowment and similar funds is pooled under two major funds. The Growth and Income Fund is the general endowment pool for the University. The University has adopted an investment objective whereby the average annual return over rolling five-year periods 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 Growth and Income Endowment Fund was 15.6 percent in 1995 and 3.6 percent in 1994. 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 7.5 percent in 1995 and 6.7 percent in 1994.

The Balanced 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. A secondary objective is to provide growth in income. The annual return for the Balanced Fund was 13.7 percent in 1995 and 3.1 percent in 1994. These percentages have been computed using realized and unrealized gains and losses and investment income. Current spending requirements were 6 percent in 1995 and 5.75 percent in 1994.

Both the Growth and Income Fund and the Balanced 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 follows:


Endowment and Similar Funds
Pooled Separately As of June 30, 1995
(in thousands)
 Pooled
Endowment Funds
Separately
Invested Funds
Total
Cash $ -- $ 31 $ 31
Mutual and Money Market Funds 96,505 5,078 101,583
U.S. Government Securities 81,690 1,890 83,580
Corporate and Municipal Bonds 17,338 660 17,998
Corporate Notes 13,332 533 13,865
International Bonds and Notes 18,026 -- 18,026
Common and Preferred Stocks 312,686 9,467 322,153
Advances to Foundations (Note 3c) 4,612 32,623 37,235
Real Estate and Other Tangible Property -- 398 398
Mortgages 10,851 -- 10,851
Other Intangible Property 157,125 479 157,604
Total Assets $ 712,165 $ 51,159 $ 763,324
Investment Income $ 21,313 $ 3,294 $ 24,607
Realized Net Gain 18,218 5,648 23,866
Unrealized Net Gain 136,632 1,803 138,435

Pooled Endowment Funds Growth & Income
Fund
Balanced
Fund
Number of Permanent Shares 558,126 347,530
Number of Participating Shares 557,958 329,028
Market Value Per Share $ 1,081.23 $ 299.55
Earnings Per Share $ 30.81 $ 12.53
Distribution Per Share $ 42.57 $ 16.52

Endowment and Similar Funds
As of June 30, 1994
(in thousands)
 Pooled
Endowment Funds
Separately
Invested Funds
Total
Cash $ 1 $ -- $ 1
Mutual and Money Market Funds 104,918 3,939 108,857
U.S. Government Securities 83,172 1,313 84,485
Corporate and Municipal Bonds 14,802 429 15,231
Corporate Notes 14,921 834 15,755
International Bonds and Notes 16,752 -- 16,752
Common and Preferred Stocks 271,901 8,165 280,066
Advances to Foundations (Note 3c) 3,912 32,416 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 $ 620,266 $ 47,938 $ 668,204
Investment Income $ 19,064 $ 3,138 $ 22,202
Realized Net Gain 59,180 342 59,522
Unrealized Net Gain 76,263 2,026 78,289

Pooled Endowment Funds Growth & Income
Fund
Balanced
Fund
Number of Permanent Shares 553,379 315,970
Number of Participating Shares 552,700 305,604
Market Value Per Share $ 963.70 $ 275.26
Earnings Per Share $ 27.45 $ 12.74
Distribution Per Share $ 40.93 $ 16.25




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