Topic: Administrative

February 2, 2007

A recently released study shows that Ball State University Foundation's three-year average investment returns on endowments was ranked in the top 7 percent of all reporting colleges and universities nationwide.

The results of the 2006 National Association of College and University Business Officers (NACUBO) endowment study reported the foundation also ranks in the top 9 percent of all colleges and universities reporting in the study with a one-year investment return of  14.8 percent for the fiscal year ending June 30, 2006. The study is a statistical comparison of the endowments from 765 colleges and universities.

The 15.9 percent average return over three years helped bring Ball State's 10-year average annual return to 9.8 percent, which ranks in the upper quartile. The average annual return of the S&P 500 over the same 10-year period was 8.3 percent. 

The foundation's one-year return of 14.8 percent is higher than the 8.6 percent return by the S&P 500 and compares favorably to the median return of 11 percent by the Wilshire Trust Universe Comparison Service for foundations and endowments.

"The Ball State University Foundation has achieved outstanding returns in recent years, and we are proud of our accomplishments," said Anthony Schneider, an Indianapolis business executive who was recently elected chairman of the foundation's board of directors. "More importantly, our staff has worked diligently in formulating an investment platform that is expected to grant us future relative rewards, even if we have less vibrant markets than those encountered over the past few years."

With assets in excess of $198 million, the foundation receives, invests and administers gifts from private sources made for the support of the university. Through the creation of donor scholarships and continuing support for faculty development, research, physical plant needs, special projects, distinguished professorships and other educationally related programs, the foundation provides millions of dollars of critical support to Ball State.

"Contributors to the foundation should know that funds entrusted to our care are ascribed to a thoughtfully crafted investment strategy designed to maximize sustainable support of Ball State," said David Bahlmann, foundation president and chief executive officer.

He attributed the high rates of return over the last three years to the work of the foundation's talented investment committee, consultants and staff. In addition, the foundation adopted an investment policy in 2004 employing a significant allocation to alternative investments, which both generate higher returns and reduce risk through increased diversification.

By Marc Ransford, Senior Communications Strategist