The University of Toledo

UTF Investment Committee Finds Consistency Is Key

 

While the roller-coaster of the stock market over the past few years saw several investors making immediate and rash decisions, The University of Toledo Foundation found that slow and steady really does win the race.

Amidst a prolonged challenging economic environment, the UT Foundation has managed to uphold its fiduciary responsibility to The University of Toledo and its donors by consistently adhering to its investment policy.

As a result, the Foundation achieved a 22.9 percent return in the 2011 fiscal year, surpassing the median return of 19.2 percent and ranking in the top quartile of participants in the NACUBO-Commonfund Study of Endowments, an industry survey by the National Association of College and University Business Officers and Commonfund Institute.

The Foundation has outperformed the three- and ten-year median returns as well.       

“What we’re seeing here is the result of a solid investment policy and great consistency in following it,” said Nick Conrad, Foundation investment committee chair.

Consistency is the key, he notes. “By avoiding the temptation of market timing and knee-jerk reactions to market fluctuations, we’ve evaded some common investment pitfalls,” said Conrad. “Our investment advisors tell us the bulk of most returns occur in a very small number of days. If you happen to be out of the market during that small window, you obviously lose out.”

Because the UT Foundation’s endowment is a permanent and perpetual asset, the focus remains on long-term investment goals and a “multigenerational” horizon. “The key is to adhere to the Foundation’s investment policy of broad diversification--including stocks, hedge funds and bonds--even amidst an up-or-down market,” Mr. Conrad said.

While continuing to review its strategies and its investment managers, the Foundation’s investment committee has one mission in mind: to maximize the value of donors’ gifts and provide The University of Toledo with a steady flow of support well into the future.

       Visit http://www.utoledo.edu/foundation/Investments/ for more details about The University of Toledo Foundation’s investment performance.