2006-07 Annual Report on External Support to the CSU

Endowment

Endowment Market Value
Endowment Market Value
2005/06 $746 million
2006/07 $874 million
2007/08 $854 million

Over the past three years, endowment market value has grown by 14 percent, starting at $746 million and totaling $854 million in 2007-2008. This growth in endowment market value included $163 million in new endowment gifts over the three-year period.

In 2007-2008, donors contributed $68 million in new gifts toward endowments. As state resources diminish, these assets are important for protecting the financial health of the institution, as evident in the endowment earnings distribution. Collectively, CSU institutions distributed $33 million from endowment in support of the university’s students, faculty and programs.

Suffering from the volatility in the financial markets, the system experienced a 5.2 percent loss in investment returns during 2007-2008. Each of the 23 CSU campuses and the Office of the Chancellor individually manage endowment funds, and the loss represents a dollar-weighted average.

The chart compares the equal-weighted average investment return for CSU campus endowments within the indicated asset ranges to similarly sized endowments at universities across the nation. The source of the national data is the 2008 National Association of College and University Business Officers Endowment Survey comprised of data from 796 public and private universities.

Endowment Investment Performance

Investment Pool
Asset Ranges
#CSU CSU Average
Investment Return
National Average
Investment Return
>$100 m to <=$500 m 3 -5.91% -2.90%
>$50 m to <=$100 m 2 -8.60% -3.20%
>$25 m to <=$50 m 5 -3.13% -4.30%
Less than or <=$25 m 14 -3.92% -4.10%

2007-2008 CSU Median = -4.15%
2007-2008 Industry Blended Benchmark Russell 3000 65% and Lehman Aggregate Bond 35% = -5.77%
National data based on the 2008 National Association of College Business Officers Endowment Survey


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Last Updated: January 27, 2009