|
For immediate release
November 13, 2008 |
Georgetown University's financial team is monitoring the volatility in the U.S. and global financial markets on a daily basis.
As of September 30, 2008, Georgetown's endowment was valued at $964 million. While this represents a 9.5% drop from the previous quarter and a 12.5% loss calendar year-to-date, returns continue to outperform both the 70% Russell 3000 and 30% Lehman Aggregate benchmark, and the Mellon Trust Universe of more than 100 foundation and endowment peers over 1, 3 and 5 year periods. Since the Investment Office was established in 2004, Georgetown's endowment returned 12.97% annualized, well ahead of the 70/30 benchmark return of 7.26% annualized.
Georgetown's financial team will continue to focus efforts to manage investments and develop a financial plan that will enable the university to meet strategic needs in this challenging economic environment. We are not experiencing the liquidity problems other large endowments are having due to a relatively lower allocation to illiquid alternative investments. We are moving to raise cash, minimize risk in the portfolio, and limit new private equity and real asset commitments, focusing instead on more liquid opportunities.
Given the market volatility, it still remains unclear how the impacts of our changing economy may fully impact Georgetown's operating budget. We are taking steps now to ensure our continued ability to carry out
the University's academic mission. We continue to manage prudently and I appreciate the support of our campuses and colleagues as we continue this work.
