NU Foundation’s 2012 Return: a Whopping -2.6% “… most of [our] negative return was due to our exposure to international equities.” Really? Seriously. Hmmmm.

November 19, 2012


WASHINGTON, D.C. (exclusive) by Ivy Harper

For those who believe the NU Foundation on this, there’s that Bridge in Brooklyn. I mean, come on, folks, this isn’t 2008. What really happened in the past year at Nebraska’s vestige of Versailles? Inquiring minds would like to know since alum who so generously contribute to the Foundation expect their generosity to be well-placed, not placed in random Post Office boxes in New Joisee.

Below is a verbatim paragraph from the illustrious pages of the NU Foundation’s latest indecipherable “Annual Report:”

“On June 30, 2012, the market value of the foundation’s total assets was $1,769,755,232. The largest component of the foundation’s assets is its endowment, valued at $1.2 billion, followed by cash holdings.”

“The foundation manages its main endowment, often referred to as Fund A, plus several smaller endowments. The main endowment includes about 4,600 individual funds created by donors and collectively invested. The return on the main endowment for the year was -2.6%.”

“While the foundation’s philosophy is to invest for the long term while managing risk and volatility, this was a very volatile and precarious year for most asset classes. Most of the foundation’s negative return was due to our exposure to international equities.” [Please].

“Most of the foundation’s peers also had negative returns this fiscal year.” [This, my Friends, is not accurate]

“According to Cambridge Associates, a consultant to the foundation and to many higher education endowments, the foundation’s -2.6% return ranks it in the 74th percentile of the 338 endowments for which Cambridge has returns.”

“When looking at the foundation’s endowment over a longer term horizon, the annual return has been 10.8% over three years, 1.0% over fi ve years, and 6.2% over 10 years. Foundation’s Total Assets in 2012…”

As the King of Siam would say, “Etcetera, etcetera, etcetera.”

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