Development Office Need To Know Meeting

1
Development Office Need To Know Meeting

• April 9, 2007
• Brian Hiestand
• Chief Investment Officer
• [phone]
• bhiestand_at_wm.edu

2
Updates Since We Last Met

• Spending Rate
• New Grantors to WAMIT
• Update on Investment Performance
• Recent Investment Manager Changes

3
Updates Since We Last Met

• Spending Rate
• New Grantors to WAMIT
• Update on Investment Performance
• Recent Investment Manager Changes

4
Updates Since We Last Met

• Spending Rate
• New Grantors to WAMIT
• Update on Investment Performance
• Recent Investment Manager Changes

5
Updates Since We Last Met

• Spending Rate
• New Grantors to WAMIT
• Update on Investment Performance
• Recent Investment Manager Changes

6
Investment Objectives

• Preserve the Real (inflation adjusted) purchasing
  power of the Fund while providing a predictable
  and growing stream of spending distributions to
  the Fund participants.
• Earn an annualized real total rate of return of
  at least 5.5 (CPI 5.5) over 5-10 year time
  horizons.
• Earn an annual rate of return that exceeds the
  Policy Portfolio benchmark
• Perform in the top third of University Endowment
  Funds.

7
Our Investment Approach

• Markets are basically efficient (but it depends
  on the market)
• Diversification is Critical
• Have an Equity Orientation
• Maintain a Value Bias
• Be Opportunistic
• Be Proactive
• Have a Healthy Dose of Skepticism

8
Role of the Investment Office

• Help set the Asset Allocation Policy Portfolio
• Performance Measurement
• Monitors Existing Investment Managers
• Research conduct due diligence on new managers
  asset classes
• Recommend the hiring firing of Investment
  Managers
• Interact with the Investment Committee
• Interact with Development Office Donors

9
WM FoundationInvestment Committee Members

• Ted Dintersmith, Chairman, 74
• Howard Busbee, 65, J.D. 67, M.L.T. 68
• Michael Hennessey, 80
• Larry Kochard, 78
• Scott Mackesy, 91
• Sam Peters, 91
• George Pierides, 82
• Kevin Tunick, 77
• Bruce Williams, 75
• Dennis Hensley, Marshall-Wythe Representative,
  J.D. 70

10
Policy Portfolio
11
Asset Allocation Over Time
12
(No Transcript)
13
Peer Institution PerformanceFiscal Year 2006
Source NACUBO
14
Investment Performance Update FY 2007(as of
February 28, 2007)
15
Updates Since We Last Met

• Spending Rate
• New Grantors to WAMIT
• Update on Investment Performance
• Recent Investment Manager Changes