LICR Fund Ranks in Top 10 USA Endowment Performance for 2004
The LICR Fund, which invests the endowment for the LICR, finished 2004 as one of the top 10 endowments in performance, according to the Chronicle of Philanthropy (USA). The Fund earned a return of 14.1%, putting it in ninth place out of some 60 institutions reporting for 2004 on a calendar year basis. By the calendar year reckoning, the Fund outperformed such notables as the Doris Duke Foundation, the Bill and Melinda Gates Foundation, and Memorial Sloan-Kettering Cancer Center.
Many endowments and foundations report their results on a June 30 fiscal year. When viewed for the twelve months ended June 30, 2004, the Fund again ranked in the top 10 out of nearly 100 institutions. The Fund’s performance of 19.8% for that period bested Yale University, Princeton University and the University of California. Harvard University, considered by many to be the investment performance gold standard, was higher at 21.1%.
Unfortunately, most market observers believe absolute returns of this magnitude will not be possible in the near future. Although the LICR Fund continues to benefit from its broad diversification across several asset classes, and is structured to minimize losses in down markets, which is critical to preserving its purchasing power, the 2005 returns for the Fund through the end of July were up only 2.5%. The expected lower return environment going forward makes the identification of new funding sources that much more important for the Institute.