Endowment Investment Report

The Campanile Foundation assumed the responsibility for the San Diego State University Endowment on July 1, 2000. The Campanile Foundation created a consolidated endowment pool on that date to provide a vehicle through which donors can provide permanent funding for schools, colleges and programs of their choice. The Endowment Pool consists of more than 700 separate endowment accounts and is similar to a mutual fund in that each individual endowment buys units into the fund. The Board of Directors of the Campanile Foundation has delegated the management of the Endowment Pool to the Finance & Investment Committee. A formal Investment Policy Statement provides the operating guidelines, consistent with the fiduciary obligations of the not-for-profit organizations under federal and state laws, CSU policies, and the Uniform Prudent Management of Institutional Funds Act (UPMIFA), for the management of the endowment investments.

Endowment giving allows for the ability to invest funds for the long-term, providing not only an annual distribution for spending, but growth through the re-investment of returns in excess of the annual spending rate to ensure that the gift will not be eroded by inflation. The Spending Policy determines how much of the total return (income and appreciated) in an endowment will be distributed to support programs and how much will be re-invested in the true endowment fund. The current spending policy of the endowment fund is 4.0% of a three-year moving average of market value. The purpose of a moving average spending policy is to reduce the volatility of distributions that might be produced by the up and down financial markets.  This rate remains in effect.

The portfolio is invested in accordance with a core principle of successful investing which acknowledges that a diversified portfolio across different asset classes should provide a sustainable rate of income while minimizing the volatility that affects all investments to varying degrees.  The allocation strategy, spending policy and governance are incorporated in the Campanile Foundation Investment Policy Statement.  The Campanile Foundation currently has allocations with thirteen different investment managers covering the following asset investment classes: Domestic and International Equity, Domestic Fixed Income, Real Estate, and Alternative Assets.

For detailed information on current investment returns, please see the Endowment Investment Summary.