 |
|
The Long-Term Investment Pool (LTIP) finished another strong year for the fiscal year ended June 30, 2011 (FY 2011). The investment return for the LTIP was 16.8%, which again significantly exceeded our stated benchmarks. The LTIP value at June 30, 2011, was $2.1 billion, up from $1.87 billion at June 30, 2010.
FY 2011 was a very trying year in that we were navigating a minefield of macro issues such as the inability of Washington to arrive at consensus on a budget and debt ceiling; the continuous concerns over potential European defaults; rising inflation in the emerging markets countries; and the earthquake and resulting supply disruptions in Japan. While all of these were occurring
simultaneously, the equity markets had a robust year of 30%+ gains. The LTIP was restructured at the beginning of fiscal year 2010 to produce competitive returns within a strong risk-controlled framework. The portfolio is designed to provide strong absolute returns, but it will not match the returns of equity markets in a bull market such as FY 2011. Conversely, the LTIP does not have the volatility of the equity markets, and will produce more consistent, reliable absolute returns.
FY 2012 will be another challenging year for the investing markets. Many of the same issues dominant in FY 2011 remain in FY 2012. We believe we are well positioned to preserve principal and take advantage of investment opportunities that arise. We appreciate the opportunity given us to serve this great University and its generous donors, and we will do everything in our power to continue the success of the past two years.
Jonathan D. Hook
Vice President and Chief Investment Officer
 |
|
Thanks to our many generous friends and alumni, $32.8 million was donated to endowments and 143 new funds were established in fiscal year 2011 (FY 2011). This brings the total number of endowed funds to 4,542 with distributions that continue to support scholarships, research, teaching, program support, and public service needed to make The Ohio State University one of the elite institutions in the country. In FY 2011, $64.5 million was distributed to endowment funds, with $17.9 million funding scholarships, fellowships, and student loans.
Overall, the University’s finances remain stable, and our financial indicators are favorable. Through continued targeted enrollment growth, expense control, and the solid performance of our Short-Term and Long-Term Investment Portfolios, the University is well-positioned to continue to navigate the turbulent economic environment.
The Ohio State University will continue to require significant, consistent, and permanent funding to move from excellence to eminence as an academic and research institution. The continued generous support of our friends and alumni will help us reach that goal.
Geoffrey Chatas
Senior Vice President for Business and Finance and Chief Financial Officer
|
 |
The Home with Heart
Reviving an Ohio Legacy
Opening the Door to the World
Connecting Buckeyes
Around the Nation
The Ohio State University Foundation 2011
Endowment Report
Financial Information
Endowments
|
