2008-09 Annual Report on External Support to the CSU

Endowment

Endowment Market Value
Endowment Market Value
2006/07 $874 million
2007/08 $854 million
2008/09 $717 million

Due to the significant downturn in the financial markets, the CSU experienced a 16 percent decrease in the value of the endowment during 2008-09, down to $717 million from $854 million in 2007-08.

In 2008-09, donors contributed $39 million in new gifts toward endowments, a decrease of 43 percent from the prior year. Over a three-year period, $158 million in new endowment gifts has been added to endowments throughout the CSU.

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 an average of over $30 million from endowment the past three years. This year, over $26 million was distributed in support of the university’s students, faculty and programs.

Negatively affected by the turmoil in the financial markets, the system experienced a 17 percent loss in investment returns during 2008-09. Peer group and systemwide investment returns are presented as dollar-weighted averages.

Endowment Investment Performance

Investment Pool
Asset Ranges
#CSU CSU Average
Investment Return
>$100 m to <=$500 m 1 -18.50%
>$50 m to <=$100 m 2 -15.91%
>$25 m to <=$50 m 7 -18.65%
Less than or <=$25 m 13 -15.74%

2008/2009 CSU Median = -16.2%
2008/2009 Industry Benchmark: Russell 3000 65% and Barclay’s Aggregate Bond Index 35% = -16.07%
2008/2009 NACUBO National University Average = -19.0%