Chief Investment Officer Receives National Recognition
Chief Investment Officer George Moss
George Moss, chief investment officer for the LSU Foundation, was recently honored by both aiCIO and Institutional Investor magazine. aiCIO, an acronym for Asset International’s Chief Investment Officer, included Moss in its 2013 40 Under 40, themed “A New Generation of Asset Owners.” As an honoree, Moss was profiled in the April issue of aiCIO magazine. Moss shared with aiCIO why he enjoys working at the LSU Foundation. “It’s my alma mater,” he said, explaining, “Simply being in a university environment is fantastic—it keeps you young. I also teach a class, which helps keep me informed.” Institutional Investor magazine honored Moss through its 4th Annual U.S. Investment Management Awards, naming him Small Endowment Manager of the Year. The awards recognize U.S. institutional investors for their innovative strategies, fiduciary savvy and impressive short- and long-term returns. Among the achievements highlighted by the publication were: • The LSU Foundation’s general endowed portfolio had a return of 13.22 percent during calendar 2012, exceeding the 12.17 percent average among nonprofits (according to Wilshire Trust Universe Comparison Service). • Returns for the non-endowed portfolio were 10.36 percent in the fiscal year ending June 30, 2012, and 6.23 percent for the calendar year 2012. For both periods, returns beat the benchmark Barclays Aggregate Bond Index.
LSU Foundation Investment Performance The LSU Foundation manages endowed assets for LSU, the LSU AgCenter, the LSU Paul M. Hebert Law Center, the LSU System Office, and certain other LSU System-related foundations. Nature of Endowment Investing The purpose of an endowment is to provide a source of perpetual funding. As such, endowment investing is a long-term proposition. Market fluctuations are expected, making longer-term returns more relevant to consider than the returns for a particular year. At the LSU Foundation, spending for endowed accounts is driven by a 5-year return average, and 10 years is the long-term timeframe for performance benchmarking. Peer Benchmarking The LSU Foundation provides investment performance data to the National Association of College and University Business Officers for its annual endowment study. In comparison to those of its peer institutions, the LSU Foundation’s endowed pools perform favorably over longer-term timeframes. The 5-year (38th percentile) and 10-year (43rd percentile) returns of the general endowed pool have outperformed the median returns of the peer group. The 5-year (34th percentile) returns of the Board of Regents Support Fund Combined Portfolio—endowed gifts made as part of the board’s matching program for chairs and professorships and related state matching funds—have outperformed the median returns of the peer group as a positive outcome of meaningful policy changes that began more than five years ago, with the most sweeping changes made effective in January 2012. Peer return goals vary because of differing spending rates (the level of investment earnings an organization aims to make available for expenditure), administrative fees, investment policies and risk tolerances (risks taken to achieve returns); as such, peer asset allocations also vary. Risk-adjusted returns would be a more accurate measure for benchmarking, but those data are unavailable.
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Cornerstone | Summer and Fall 2013 | LSU Foundation