Development Office Need To Know Meeting

1
Development Office Need To Know Meeting

• April 14, 2008
• Brian Hiestand
• Chief Investment Officer
• [phone]
• bhiestand_at_wm.edu

2
Updates Since We Last Met

• Spending Rate
• New Grantors to WAMIT
• Investment Process
• Update on Investment Performance

3
Updates Since We Last Met

• Spending Rate
• New Grantors to WAMIT
• Investment Process
• Update on Investment Performance

4
Updates Since We Last Met

• Spending Rate
• New Grantors to WAMIT
• Investment Process
• Update on Investment Performance

5
Updates Since We Last Met

• Spending Rate
• New Grantors to WAMIT
• Investment Process
• Update on Investment Performance

6
William Mary FoundationInvestment Committee
Members

• Larry Kochard, Chairman, 78
• Ted Dintersmith, 74
• Michael Hennessey, 80
• Fred Henritze, 75
• Scott Mackesy, 91
• Sam Peters, 91
• George Pierides, 82
• Kevin Tunick, 77
• Bruce Williams, 75
• Mat Pope, Law School Representative, J.D. 78
• Marshall Acuff, Business School Representative,
  62
• Carroll Owens, VIMS Foundation Representative, 63

7
Investment Objectives

• Preserve the Real (inflation adjusted) purchasing
  power of the Fund while providing a predictable
  and growing stream of spending distributions to
  the Fund participants.
• Earn an annualized real total rate of return of
  at least 5.5 (CPI 5.5) over 5-10 year time
  horizons.
• Earn an annual rate of return that exceeds the
  Policy Portfolio benchmark
• Perform in the top third of University Endowment
  Funds.

8
Our Investment Approach

• Markets are basically efficient (but it depends
  on the market)
• Diversification is Critical
• Have an Equity Orientation
• Maintain a Value Bias
• Be Opportunistic
• Be Proactive
• Have a Healthy Dose of Skepticism

9
Role of the Investment Office

• Help set the Asset Allocation Policy Portfolio
• Performance Measurement
• Monitors Existing Investment Managers
• Research conduct due diligence on new managers
  asset classes
• Recommend the hiring firing of Investment
  Managers
• Interact with the Investment Committee
• Interact with Development Office Donors

10
Investment Portfolio(as of February 29, 2008)
11
Asset Allocation Over Time
12
Updates Since We Last Met

• Spending Rate
• New Grantors to WAMIT
• Investment Process
• Update on Investment Performance

13
Performance Report Fiscal Year 2007(As of June
30, 2007)
Benchmark 60 Russell 3000, 20 MSCI World ex
US, 20 Lehman Aggregate Bond Index
14
Performance ReportLast Five Fiscal Years
Benchmark 60 Russell 3000, 20 MSCI World ex
US, 20 Lehman Aggregate Bond Index
15
NACUBO Endowment StudySummary of Findingsfor
Fiscal Year 2007
16
Investment Performanceas of February 29, 2008
Blended Benchmark 60 Russell 3000, 20 MSCI
World ex US, 20 Lehman Aggregate
17
Investment Performance Relative to Blended
Benchmark Fiscal Year 2008 thru February 2008
18
Contact InformationBrian HiestandChief
Investment OfficerThe College of William and
Mary Foundation5300 Discovery Park Boulevard3rd
FloorWilliamsburg, Virginia 23188-2695T
[phone]F [phone]bhiestand_at_wm.edu