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Quarterly Report on Endowment Performance 

This is a series of ongoing quarterly reports on the endowment portfolio’s performance.

The Cal Poly Pomona Foundation administers gifts and donations to programs, scholarships, and

endowments on behalf of Cal Poly Pomona. The purpose of the endowment portfolio is to

support the university and its mission over the long term by ensuring that the future growth of

the endowment is sufficient to offset normal inflation plus reasonable spending, thereby

preserving the constant dollar value and purchasing power of the endowment. The Cal Poly

Pomona Foundation Investment Portfolio (Endowment) is managed by Graystone Consulting, a

Business of Morgan Stanley under the direction of the Board of Directors per the Endowment

Investment Policy #130.

Investment Objective

The overall objective of the Endowment is to obtain a total return annual return of 4.0% plus the

percentage change in the greater Los Angeles area consumer price index. The value of the Cal

Poly Pomona endowment is $96.4 million on September 30, 2017.

Quarterly Report on Endowment Performance 
September 30, 2017 

This is a series of ongoing quarterly reports on the endowment portfolio’s performance. 
The Cal Poly Pomona Foundation administers gifts and donations to programs, scholarships, and 

endowments on behalf of Cal Poly Pomona. The purpose of the endowment portfolio is to 

support the University and its mission over the long term by ensuring that the future growth of 

the endowment is sufficient to offset normal inflation plus reasonable spending, thereby 

preserving the constant dollar value and purchasing power of the endowment.  The Cal Poly 

Pomona Foundation Investment Portfolio (Endowment) is managed by Graystone Consulting, a 

Business of Morgan Stanley under the direction of the Board of Directors per the Endowment 

Investment Policy # 130.   
Investment Objective 
The overall objective of the Endowment is to obtain a total return annual return of 4.0% plus the 

percentage change in the greater Los Angeles area consumer price index. The value of the Cal 

Poly Pomona endowment is $96.4 million at September 30, 2017. 
 

PERFORMANCE 
(net of fees)

QTR

Fiscal YTD1 Year

3 Years

5 Years

Since 

Inception

Endowment

4.44%

4.44%

13.67%

2.03%

6.41%

6.68%

Benchmark

3.67%

3.67%

12.86%

3.51%

8.30%

7.38%

Difference +/-

0.77%

0.77%

0.81%

-1.48%

-1.89%

-0.70%

Inception October 2008

 

For the first fiscal quarter ending September 30, 2017, the Endowment portfolio returned 4.44, 

comfortably outperforming the Custom Benchmark’s return of 3.67%. 

The portfolio’s Domestic 

Equities gained 3.69%, yet slightly underperformed the Russell 3000 index at 4.57%. However, 

the portfolio’s returns from International and Emerging Markets Equities, Fixed Income and 

Hedge Funds were all ahead of their respective benchmarks. Especially outstanding were 

International and Emerging Markets Equities, which gained 8.79% for the quarter as compared 

to 6.16% for the MSCI AC World ex U.S. benchmark. 

 

The Foundation Board of Directors approved a revised endowment distribution policy at their 

May 2017 meeting.  The revised distribution policy allows for a 4% distribution in the first 

quarter of the fiscal year based upon the endowment moving average over 12 quarters ending 

December 31

st

.  The revised policy places collars around the effective rate allowing for no less 

than 3% or greater than 5% distributions, provided there are earnings to distribute. The revised 

June 30, 2017

For the first fiscal quarter ending September 30, 2017, the Endowment portfolio returned 4.44,

comfortably outperforming the Custom Benchmark’s return of 3.67%. The portfolio’s Domestic

Equities gained 3.69%, yet slightly underperformed the Russell 3000 index at 4.57%. However,

the portfolio’s returns from International and Emerging Markets Equities, Fixed Income and

Hedge Funds were all ahead of their respective benchmarks. Especially outstanding were

International and Emerging Markets Equities, which gained 8.79% for the quarter as compared

to 6.16% for the MSCI AC World ex U.S. benchmark.