June 30 Endowment Spending Bases

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

As you will recall, the endowment spending bases were adjusted upwards on September 30 and December 31. In January, the UFF Finance Committee approved a special additional increase, raising the ratio of spending base/market value to 90%. In March there was no adjustment.

As you may be aware, the investment markets have done very poorly in the last year. We are pleased to advise that UFICO’s returns have substantially beaten the benchmarks despite consistently “down” markets. The endowment pool earned 3% for the fiscal year.

The analysis as of June 30 of spending base/market value ratios of the endowments indicates there will be no adjustment this quarter. With the volatile market due to the economic downturn being experienced by the United States, there is no assurance of future positive adjustments. Please consider this and plan carefully for the use of the spendable dollars you receive from endowments funds.