UNIVERSITY PARK, Pa – The University’s Office of Investment Management submitted the semi-annual report on the University’s long-term investment pool (LTIP) to the Penn State Board of Trustees today (Sept. 16). The total market value of the University’s LTIP was valued at $3.62 billion as of June 30, 2016.
Penn State’s endowment assets were valued at $2.35 billion, and the non-endowed funds were valued at $1.27 billion. Similar funds, consisting of deferred gift assets such as charitable remainder trusts and gift annuities, totaled $124 million. A summary of the year-end report can be found at www.psu.edu/oim.
The LTIP net investment was down 0.8 percent during the 2016 fiscal year. But the three- and five-year annualized returns were 6.4 percent and 6.8 percent respectively.
“The Penn State Long-term Investment Pool’s (LTIP) 7.7 percent return for the 20 years ending June 30, 2016, continues to sustain generous program support (endowment spending), thus maintaining intergenerational equity,” according to John Pomeroy, Penn State’s chief investment officer.
The Office of Investment Management oversees day-to-day management of Penn State’s investments, which consist of the LTIP, non-endowed funds and other endowment-like funds. These responsibilities are delegated to the office by the Penn State Investment Council. The Office of Investment Management is a unit within Penn State’s Finance and Business division.
The Penn State Investment Council is an investment oversight body created by the Board of Trustees to provide guidance to the Office of Investment Management for its administration of the University’s LTIP. The council has primary responsibility to ensure that investments are managed according to approved investment policies, objectives and guidelines and that the Office of Investment Management abides by them. The council meets six times per year and is comprised of two internal members – the CEO of the Office of Investment Management and the senior vice president for Finance and Business/treasurer of the University – in addition to non-University members with investment experience.