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Boston University Endowment Fund

Name: Boston University Investment Office

Assets Under Management:  $1.39 Billion (Source: Boston University on 6/30/2012)

Annual Report: Boston University Financial Statements June 30, 2013 and 2012

Portfolio Insights: “Under the University’s conflict of interest policy, all business and financial relationships among the University and entities affiliated with Trustees or Officers of the University are subject to the review and approval of the Audit Committee of the Board of Trustees.

The University considers cash on hand, cash in banks, certificates of deposit, time deposits, and U.S. Government and other short-term securities with maturities of three months or less when purchased as cash and cash equivalents.

Cash and cash equivalents-restricted represent funds held by bond trustees that will be drawn down to fund various capital projects and costs of issuance.

Collateral posted with counterparties under the terms of certain interest rate exchange agreements is also included in cash and cash equivalents-restricted.” (Source)

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Top Boston University Endowment Fund Headlines:

1) Boston University said its total revenue grew 3 percent during its most-recent fiscal year as tuition collections topped the $1.2 billion threshold for the first time in school history.

Financial filings indicate that BU’s balance sheet also was aided by a 15.9 percent year-over-year increase to its endowment, which was valued at $1.55 billion as of June 30, the official end to the school’s most-recent fiscal year. The endowment’s growth was spurred by a 16.7 percent investment return for the 12-month period.

The college’s investment performance and endowment growth in fiscal 2014 rank high among the smattering of schools that have published results from their recently completed fiscal years. Among those early filers, BU’s total endowment growth was outpaced only by Curry College in Milton (18.9 percent) and was slightly ahead of the Massachusetts Institute of Technology (14.4 percent). (Source)

2) Boston University’s Annual Report displayed a jump in overall monetary intake throughout Fiscal Year 2013, according to officials from the school’s Department of Treasury. The report showed that BU was able to increase its revenue, said Senior Vice President, Chief Financial Officer and Treasurer Martin Howard.

“Financial results for FY 2013 reflect our continued vigilance to maintain a diversity of revenues from five primary sources: tuition, research, auxiliaries, philanthropic and endowment support,” Howard said. “It is worth noting our continued success in annual fundraising and progress toward our comprehensive campaign goal.”

University tuition and fees made up 51.5 percent of BU’s revenue for FY 2013, the report stated. Sponsored programs, sales and services, and auxiliaries also formed a significant portion of the school’s $1.689 billion in revenues. (Source)

3) Boston University garnered a 16.7 percent return on their over $1.5 billion endowment for the 2014 fiscal year, about 4 percent of which BU will reinvest to generate additional funding in the future. BU manages its endowment through Chief Investment Officer Clarissa Hunnewell, who uses the endowment to invest in stable assets, such as stocks and bonds, to produce a strong return, said BU spokesman Colin Riley.

“It really reflects the strong investment management by our chief investment officer,” Riley said. “This is a solid return, and it reflects the market and how strong the economy is.”

Though BU saw a growth in its endowment of 16.7 percent, the university will continue to invest a majority of the funds as opposed to spending the profit on the school immediately, Riley said. (Source)

4) Boston University said its total revenue grew 3 percent during its most-recent fiscal year as tuition collections topped the $1.2 billion threshold for the first time in school history. Financial filings indicate that BU’s balance sheet also was aided by a 15.9 percent year-over-year increase to its endowment, which was valued at $1.55 billion as of June 30, the official end to the school’s most-recent fiscal year. (Source)

5) Founded in 1839 by Methodist ministers, Boston University administers one of the strongest private research programs in the country. Students have a choice of over 250 courses of study through 18 schools and are offered many opportunities to work and publish with faculty (students have received millions of dollars in grants and funding for their projects). The MA-based institution also has a strong international presence, with satellite campuses in Brussels, Dubai, London, Paris and Sydney. The Boston University Terriers compete in 23 NCAA Division I varsity sports and have won over 43 conference championships and five national championships in men’s hockey. Notable alumni include Academy Award-winning actress Julianne Moore, civil rights activist Martin Luther King, Jr. and shock-jock Howard Stern. (Source)

 

About Richard C. Wilson