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Loyola Marymount University Endowment Fund

Name: Loyola Marymount University

Assets Under Management: $412 Million (Source: Loyola Marymount University on 5/31/2013)

Annual Report: Loyola Marymount University Financial Statements May 31, 2013

Portfolio Insights: “Loyola Marymount University (the “University” or “LMU”) is a coeducational institution offering undergraduate, graduate and professional degrees, including programs leading to degrees in law and business. The University is a non-profit organization as described in Section 501(c)(3) of the Internal Revenue Code (the “Code”) and is exempt from federal income taxes on related income pursuant to the Code and under corresponding sections of the California Revenue and Taxation Code.

The financial statements of the University have been prepared on the accrual basis of accounting to conform to accounting principles generally accepted in the United States of America (“GAAP”).” (Source)

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Top Loyola Marymount University Endowment Fund Headlines:

1) The campus master plan commits Loyola Marymount University to improving energy and water efficiency. The university only purchases paper certified by the Forest Stewardship Council with 30 percent postconsumer recycled material.

LMU has a large solar electric rooftop array that generates 868,000 kilowatt-hours of electricity annually, providing 6 percent of the annual campus electrical needs. The university purchases another 6 percent of its electrical energy through renewable energy credits. Central plant chillers were replaced in 2008, increasing chiller plant efficiency by 50 percent. (Source)

2) Loyola Marymount University is a private institution that was founded in 1911. It has a total undergraduate enrollment of 6,205, its setting is suburban, and the campus size is 142 acres. It utilizes a semester-based academic calendar. Loyola Marymount University’s ranking in the 2015 edition of Best Colleges is Regional Universities (West), 3. Its tuition and fees are $41,372 (2014-15).

Loyola Marymount University—the largest Catholic university on the West Coast—is located in Los Angeles. LMU provides housing to more than 3,000 students in its residence halls, apartments, and houses. There are about 150 student clubs and organizations on campus, including nearly 15 Greek chapters. Students interested in media can join the radio station; The Los Angeles Loyolan, a student newspaper; The Tower, a university yearbook; or ROAR Network, a television channel. The Loyola Marymount Lions field a number of Division I athletic teams and compete in the West Coast Conference. Club sports like the surfing, rugby, and ski and snowboard are also popular among students. (Source)

3) Loyola Marymount University alumnus, R. Chad Dreier, and his wife, Ginni, have pledged $3.5 million to LMU for purposes of endowing a program of accounting ethics courses. Mr. Drier is chairman of the LMU board of trustees as well as president, chairman, and chief executive officer of the California-based Ryland Group, one of the nation’s largest homebuilders and mortgage lenders.

“We are at a crossroads in the accounting profession from an ethical standpoint,” Mr. Drier said. “The sheer number of accounting abuses tells us that something more is needed.”

Students participating in the ethics courses will learn how to handle ethical questions and will be taught to look beyond the bottom line in corporate financial reporting. “Integrity is the first requirement of success,” Mr. Drier said. “We need to teach our students a sense of moral obligation.” (Source)

4) The University’s alternative investment funds consist of private equity, venture capital, natural resources, distressed debt, real estate and absolute return hedge funds. These are largely fund-of-funds and are held in partnership or trust format. Approximately 34% of the University’s investments as of May 31, 2014 are invested with various limited partnerships that invest (directly or indirectly) in the securities of companies that are not immediately liquid, such as venture capital and buyout firms, and in real estate limited partnerships that have investments in various types of properties.

Included in common stock and mutual funds are investments held in charitable remainder trusts wherein the University is the trustee and has control over the assets. The aggregate balance of these assets held in trust at May 31, 2014 is $429,000. (Source)

5) The university aims to optimize investment return and is exploring, but not currently invested in, renewable energy funds or similar investment vehicles. The vast majority of the endowment is invested in mutual funds or other commingled investments. For the remaining portion of investments, LMU votes proxies. (Source)

About Richard C. Wilson