UNIVERSITY PARK, Pa. – The semi-annual report on the University’s long-term investment pool (LTIP) was included in materials submitted to the Penn State Board of Trustees today (May 6), indicating that the total market value of the University’s LTIP was valued at $3.6 billion as of Dec. 31, 2015.
David E. Branigan, chief executive officer of the University’s Office of Investment Management (OIM), noted that Penn State’s endowment assets were valued at $2.34 billion as of Dec. 31, 2015. Similar funds, consisting of deferred gift assets such as charitable remainder trusts and gift annuities, totaled $115 million while commingled non-endowed funds were approximately $1.29 billion. A summary of the year-end report can be found at www.psu.edu/oim.
The LTIP net investment return was 1.1 percent during the 2015 calendar year, while the three- and five-year annualized returns were 7.5 percent and 8 percent, respectively.
“Long-term LTIP investment performance has produced real growth, which nets out program support (endowment spending) and inflation from total LTIP returns, thus maintaining intergenerational equity,” according to John Pomeroy, Penn State’s chief investment officer.
OIM oversees day-to-day management of Penn State’s investments, which consist of the LTIP, non-endowed funds and other endowment-like funds, under the direction of the CEO and chief investment officer. These responsibilities are delegated to OIM by the Penn State Investment Council (PSIC). OIM is a unit within Penn State’s Finance and Business division.
PSIC is an investment oversight body created by the Board of Trustees to provide guidance to OIM for its management of the University’s LTIP. The PSIC has primary responsibility to ensure that investments are managed according to approved investment policies, objectives and guidelines and that OIM abides by them. PSIC meets six times per year and is comprised of two internal members – the CEO of OIM and the senior vice president for Finance and Business/treasurer of the University – in addition to non-University members with investment experience.