2012 Annual Report

Support totals $19 million in FY2012: investment markets prove challenging

Strong support for the University and its programs continued in fiscal year 2012 as alumni, friends and foundations contributed $19 million in gifts and pledges. This comes close to the $20.2 million in gifts in 2011.  

In one sign of an improving economy, gifts of more than $10,000 totaled $8.3 million, an increase of $1.6 million over 2011. Plus, the number of people who notified us of their estate plans more than doubled, which bodes well for the future. In all, the Foundation received 13,773 new gifts or pledges made in support of the University of Montana. 

The generosity of donors, past and present, allowed the Foundation to transfer $9.4 million to the University during 2012 for scholarships, programs and capital projects. The Foundation has transferred more than $130 million in spendable funds to the University over the past ten years.

Fiscal year 2012 was a challenging one in the investment markets. Many well-diversified portfolios reported losses last year, including the Foundation’s long term investment portfolio, which lost 1.9 percent for the year. The portfolio’s international equity weighting and relatively modest treasury holdings pulled down the portfolio’s return.  Fortunately, the portfolio’s exceptional returns in 2010 and 2011 provided strong three year returns.  The portfolio’s five and ten- year returns reflect the challenges of the decade’s double downturn (the Tech Bubble of 2002-3 and the Great Recession of 2008-9).

Investment Returns (as of June 30, 2012)
1 YR 3 YR 5 YR 10 YR
Long Term Investment Portfolio -1.9% 11.8% 1.0% 5.5%
Common Index* 6.7% 12.9% 3.3% 5.8%
*The Common Index is comprised: 60% S&P 500 Index and 40% Barclays Capital Aggregate Bond Index.

The flattening of the portfolio’s asset allocation continues with the reduction of global equity target allocation from 60 percent to 54 percent and ongoing focus on increasing both diversifying (inflation resistant) strategies and real assets (e.g. energy, timber and real estate) allocations.  These changes are aimed at producing returns that are less volatile while preserving purchasing power over the long term.

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