OSU Foundation Achieves Best of Class Investment Return

The Oklahoma State University Foundation earned an exceptional 21.7 percent total return for the fiscal year ended June 30, 2006 placing it among top performing public and private universities across the country.

According to a recent www.fundfire.com article citing a Bloomberg survey of returns earned by the 25 largest educational endowments in the U.S., only the Massachusetts Institute of Technology and Yale University earned returns higher than the OSU Foundation for the fiscal year, with respective returns of 23 percent and 22.9 percent.

Additionally, preliminary data released by the National Association of College and University Business Officers indicates OSU Foundation returns were more than double the one-year average annual rate of return of 10.7 percent for all universities. A complete report on the performance of all foundations will be released by NACUBO later this month.

The members of the OSU Foundation investment committee and its external investment consultant, Lowery Asset Consulting, actively seek out exceptional investment opportunities for the Foundation. These opportunities diversify the portfolio and generate enhanced returns while operating within the Board-approved investment policy.

The best performing portfolio investment during the 2006 fiscal year was the BP Capital Energy and Energy Equity funds, which represented 11 percent of the assets of the investment pool at June 30, 2006. The investment with BP Capital, which was founded by OSU graduate Boone Pickens, accounted for 40 percent, net of fees, of the 21.7 percent total return earned by the Foundation.

The pooled investment fund at the OSU Foundation totaled $315.6 million at June 30, 2006, and was spread over 28 different investments. Last year, OSU Foundation’s total investment return of 14.3 percent ranked in the top six percent of over 600 foundations that reported their results.



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