The market value of the Purdue Endowment on June 30, 2013 was $2.182 billion, up $265 million from the previous June 30. The Endowment’s fiscal year performance was 11.8 percent versus the Target Benchmark return of 11.1 percent. The Endowment distributed $97.0 million in the last fiscal year across the thousands of individual endowments.
At the end of the second quarter of 2013, investors saw equity markets oscillate as Ben Bernanke, the chairman of the Federal Reserve, made public statements that caused bond investors to exit in waves. Although the Federal Reserve’s plan continues to hold interest rate at current levels through 2014, the 10-year Treasury saw a 1 percent increase to 2.6 percent in the quarter ending June 30, 2013. Minutes from the June policy meeting show about half of the officials believe the central bank should end its $85 billion-per-month bond-buying program by the end of this year, suggesting that officials are divided on the timing of the coming wind-down of the program.
There is still uncertainty in the financial markets as recovery continues. The Purdue Endowment’s investments are intended to meet the current and future needs of the organization by investing today and spending prudently over time. We have been able to accomplish this task through the generosity of donors like you who have shared our vision. The Endowment’s diversified investment strategy adds value over time by participating less when the financial markets are down allowing the power of compounding to add incremental return over the long-term.
We continue to do our best to meet the Endowment’s goal of generating the funds for annual spending plus inflation to provide the support required to meet the wishes of our donors.
Chief Investment Officer
For more information, questions or concerns, please contact 765-494-1244.