NOTE 1: Endowment and Similar Funds

The major portion of the University's endowment and similar funds is maintained in a single investment pool named the University Pooled Endowment Fund. The University has adopted an investment objective whereby the average annual return of the University Pooled Endowment Fund over rolling five-year periods should equal the rate of inæation (measured by the Consumer Price Index) plus its average level of spending from endowment income. The annual return for the Pooled Endowment Fund was 18.4 percent in 1999 and 14.3 percent in 1998. These percentages have been computed using realized and unrealized gains and losses and investment income. The rate of inæation plus the average level of spending from endowment income was 7.0 percent in 1999 and 6.4 percent in 1998.

The Pooled Endowment Fund is 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 follows:

Endowment and Similar Funds As of June 30, 1999 (in thousands)

	Pooled Endowment Assets*	Separately Invested Assets	Total
Mutual and Money Market Funds	$ 321,726	$ 8,486	$ 330,212
Repurchase Agreements	--	--	--
U.S. Government Securities	149,814	2,992	152,806
Corporate and Municipal Bonds	47,601	2,539	50,140
Corporate Notes	438	--	438
International Bonds and Notes	--	--	--
Common and Preferred Stock	322,648	16,640	339,288
Advances to Foundations (Note 3c)	--	36,351	36,351
Real Estate and Other Tangible Property	--	1,280	1,280
Mortgages	4,198	--	4,198
Private Placement Investments	399,580	--	399,580
Total Assets * Includes $24.6 million of trust assets.	$ 1,246,005	$ 68,288	$ 1,314,293
Investment Income	$ 24,902	$ 5,640	$ 30,542
Realized Net Gain	191,877	2,466	194,343
Unrealized Net Gain/(Loss)	(26,167)	378	(25,789)
Pooled Endowment Funds
Number of Permanent Shares	691,303
Number of Participating Shares	698,357
Market Value Per Share	$ 1,766.38
Earnings Per Share	$ 33.76
Distribution Per Share -- Class A	$ 64.95
Distribution Per Share -- Class B	$ 87.87

Endowment and Similar Funds As of June 30, 1998 (in thousands)

	Pooled Endowment Assets*	Separately Invested Assets	Total
Mutual and Money Market Funds	$ 112,662	$ 9,892	$ 122,554
Repurchase Agreements	--	232,256	232,256
U.S. Government Securities	186,122	3,090	189,212
Corporate and Municipal Bonds	21,041	1,471	22,512
Corporate Notes	4,031	15,690	19,721
International Bonds and Notes	16,965	--	16,965
Common and Preferred Stock	441,268	15,117	456,385
Advances to Foundations (Note 3c)	--	45,596	45,596
Real Estate and Other Tangible Property	--	1,280	1,280
Mortgages	5,721	--	5,721
Private Placement Investments	286,198	--	286,198
Total Assets * Includes $19.1 million of trust assets.	$ 1,074,008	$ 324,392	$ 1,398,400
Investment Income	$ 24,703	$ 5,424	$ 30,127
Realized Net Gain	102,628	1,532	104,160
Unrealized Net Gain/(Loss)	2,448	1,446	3,894
Pooled Endowment Funds
Number of Permanent Shares	690,142
Number of Participating Shares	691,217
Market Value Per Share	$ 1,528.24
Earnings Per Share	$ 36.85
Distribution Per Share -- Class A	$ 53.94
Distribution Per Share -- Class B	$ 73.99