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Virginia Tech Foundation Endowment Fund

Name: VT Foundation Endowment Fund

Assets Under Management: $660 Million (Source: Virginia Tech Foundation on 6/30/2013)

Annual Report: Virginia Tech Foundation’s 2012-13 Financial Report

Portfolio Insights: “The value of Virginia Tech Foundation’s endowed assets as of June 30, 2013 was $660 million. As measured against the Cambridge Associates peer group universe, the endowment’s return for 2012-13 ranked in the top 2nd percentile. Over the last fi ve years, the endowment outperformed the benchmark return, ranking in the top 5th percentile. The 2012 Virginia General Assembly directed the Joint Legislative Audit and Review Commission (JLARC) to conduct a study on cost effi ciency of public higher education institutions and to identify opportunities to reduce the cost of public higher education. This comprehensive study is being conducted over a period of two years, and is expected to be completed in November 2014. As of December 2013, JLARC has issued three of five reports planned for the two-year period.” (Source)

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Top Virginia Tech Foundation Endowment Fund Headlines:

1) The Office of Investments and Debt Management oversees the financial assets of the university and its related Virginia Tech Foundation. Responsibilities of the Office include the investment oversight of the Foundation’s endowment and life income programs, and the management, accounting and reporting of various operating and short-term investment funds.

The Office also manages the comprehensive debt program for the university and other university-related corporations. The program includes securing debt financing for many of the capital projects located on-campus and at the adjacent Corporate Research Center, as well as maintaining compliance of all bond covenants. (Source)

2) Daniel Ward joined the Virginia Tech Foundation in April 2008 where he serves as its Investments Manager.  He leads all aspects of managing the Foundation’s portfolio including manager selection and setting asset allocation policy.  The Foundation currently oversees approximately $1Billion in operating funds and long-term endowment funds which support Virginia Tech University.  Prior to joining Virginia Tech he was the director of research for Integritas Advisors, a family office, from July 2004 – April 2008.  Mr. Ward holds a BBA from The University of Michigan Business School, a MBA from The University of Florida Warrington College of Business and is a CFA charterholder. (Source)

3) By the end of December 2009, the Virginia Tech endowment fund had increased $55.2 million, or 12.2%, for the first six months of fiscal 2009-2010 according to a news release from Tech. The article used data compiled by National Association of College and University Business Officers, through its “Commonfund 2009 Endowment Study.” The study looked at 842 educational endowments, then compared the endowments’ absolute and percentage returns. (Source)

4) Virginia Tech’s Endowment is a large fund worth over $600 million, which is controlled by the Virginia Tech Foundation, a private corporation.  The Virginia Tech Foundation receives donations from a variety of donors under the condition that the money will never be spent, but rather in the market to provide a perpetual stream of funding to the University. The Virginia Tech Foundation works hard to invest the endowment in a diversified portfolio so that these investments receive the maximum returns as our economy grows. The returns from these investments are then used to fund university programs and scholarships.

As the endowment is an extension of the university, we believe it should be managed in accordance with the guiding principles of Virginia Tech: our mission statement and land grant goals. (Source)

5) The nonprofit Virginia Tech Foundation, which is financing and carrying out the project, has endowments totaling roughly $78 million, $3 million over the limit required for the “small business” designation. The FCC, which has never before considered a bidding application from a nonprofit university project, ruled that the foundation’s money should be counted as revenue. The agency also counted the $500 million that the university gets annually from tuition, state aid and other sources. (Source)

About Richard C. Wilson