• Investment returns provide an important source of revenue for the University’s programs. Among the funds invested by the University are endowments, life income trusts and annuities, outright gifts, reserve balances, and cash.

• Endowed gifts provide permanent capital and an ongoing stream of current earnings to the University. Programs supported by the endowment include undergraduate scholarships, graduate fellowships, professorships and chairs, and research activities.

• Most endowments are commingled in the Consolidated Endowment Fund (CEF), a balanced investment fund. As in a mutual fund, each individual endowment maintains a separate identity and owns units in the fund. On June 30, 2001, the fair market value of the CEF was $839 million, representing the investments of 1,628 individual endowments.

• Endowed program support over the last five years totaled $124.5 million. During that period, the average annual total return on the CEF was 14.5 percent.

• Non-endowed gifts, reserve balances, and cash are commingled for investment purposes although accounted for separately. The fair market value of these investments at the end of the fiscal year was $792 million. The total return has averaged 9.1 percent annually over the last five years.