June 30, 2007 Adjustments to Endowment Spending Bases

Paul A. Robell, Vice President, Development and Alumni Affairs

As you are aware, the Foundation recalculates the spendable base of each endowment quarterly. We are very pleased to share with you that as of June 30, 2007 virtually all endowment funds have received an increase in their spendable bases. The average increase was 4.33%; you can confirm the adjustment to a particular fund by checking on FAS where these adjustments will be posted next week. The spending transfer for each endowment will continue to be 4% of the growing spendable base. This adjustment reflects a $41.5 million increase in spendable bases across the endowment funds. The cumulative affect of the quarterly adjustments this past fiscal year is an average increase of 7.22%.

Fiscal year returns are an excellent 18.83% (net of investment management fees). This is reflected in the adjustment to spendable base described above.

We want to thank our colleagues at UFICO for their excellent performance this year.

If you have any questions, please contact me at probell@uff.ufl.edu, Leslie Bram at lbram@uff.ufl.edu or Alan West at awest@uff.ufl.edu.