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Purdue University Endowment Fund

Name: Purdue University Endowment

Assets Under Management: $2.443 Billion (Source: Purdue University on 6/30/ 2014)

Annual Report:  Purdue University Endowment Fund’s 2013 Financial Report

Portfolio Insights: “This report presents Purdue University’s financial statements for the fiscal years ended June 30, 2013 and 2012. We provide this information on our financial position and the results of operations as part of the University’s commitment to report annually on its fiscal affairs. These financial statements have been audited by the Indiana State Board of Accounts and their report, which is an unqualified opinion, appears on pages 5 and 6.

Purdue University continues its long tradition of being a world-class research university. Purdue University is ranked 23rd among the nation’s public universities and 65th among all universities, according to U.S. News & World Report. The University offers instruction in a wide range of disciplines, granting undergraduate and graduate degrees through four campuses. Purdue has departments ranked in the top 10 in nearly every college or school on campus, from our no. 1 agricultural and biological engineering program to our highly rated Krannert school of management and Pharmacy programs.” (Source)

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Top Purdue University Endowment Headlines:

1) The Office of Investments manages the combined Purdue University and Purdue Research Foundation endowments of $2.443 billion and the Cash Management Investment Pool of $1.51 billion. All funds are managed according to the policies established by the Boards of the University and Foundation under the direction of the Investment Committee. As of June 30, 2014, funds under management including endowed funds, trusts, annuities, and cash totaled $3.98 billion.

The Investment Committee has oversight responsibility for the management of the investments and directs the daily activities of the Office of Investments. The Investment Committee has adopted a diversified approach to investing that balances the goals of maximizing return and preserving purchasing power. By diversifying among asset classes and rebalancing toward policy target allocations, the Investment Committee expects to enhance the Endowment’s and Cash Management Investment Pool’s real market value and provide a significant long-term funding source for the University’s spending requirements. (Source)

2) A year after Purdue University’s endowment saw significant gains, its value has dipped slightly while retaining its standing among public schools, according to a new report. Purdue’s $1.9 billion fund ranked No. 11, the same as last year. And it is five spots ahead of Indiana University. The National Association of College and University Business Officers-Commonfund Study of Endowments released its annual findings Friday. The report analyzes the overall size and growth in fiscal year 2012 of endowments for 831 colleges and universities. (Source)

3) Purdue University Endowment, West Lafayette, Ind., hired Fred Alger Management to run $57 million in its capital appreciation strategy, which focuses on large-cap growth equities, Scott Seidle, chief investment officer at the $2.04 billion endowment, said in an e-mail.

Funding came from the termination of Wellington Management, which ran the assets in an opportunistic growth equity strategy. Mr Seidle said the termination was because of underperformance. The hiring follows a shortlist search by the endowment. “Fred Alger’s investment process was clear and specific and was the best fit for the endowment’s large-cap growth mandate,” Mr. Seidle wrote. (Source)

4) Purdue University Endowment, West Lafayette, Ind., hired Valinor Management and Conatus Capital to manage a total of just under $20 million in global long-short hedge funds, said Scott Seidle, chief investment officer. Each manager got less than $10 million, Mr. Seidle said, declining to be specific.

The moves completed the $2 billion endowment’s effort to reach its 25% target allocation to hedge funds, all direct, he said. The endowment has no plans for further allocations to the asset class, he said.

The endowment expects the new allocation will reduce risk. “We will have to wait and see” about the return, he added. (Source)

5) Purdue University is a coeducational, state-assisted system. The University plays a key role in advancing Indiana’s economic development and is one of America’s leading research institutions. The West Lafayette campus has 38,847 enroled students, whilst system-wide enrolment numbers 69,050 students. The University now offers 7,400 courses in more than 500 undergraduate majors. Building on its Endowment is one of Purdue University’s top priorities. Purdue has three investment objectives: firstly the preservation of capital; secondly the protection of capital from inflation; and thirdly the enhancement of capital through market appreciation. With the emphasis being on long-term growth, Purdue invests the majority of its Endowment funds in equities and the remainder in bonds and alternative investments. (Source)

 

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