University of Virginia Library

REPORT OF THE FINANCE COMMITTEE

The Rector read to the Board the following Report of the Finance Committee.

There is submitted herewith a copy of a report and summary of the University of
Virginia Consolidated Endowment Funds submitted by the State Planters Bank and Trust Company
for the period January 25, 1953, to January 25, 1954. It will be noted that the fund had
a book value as of January 25, 1954, of $6,165,242.31. The original book value of the
general endowment fund as of the date the State Planters Bank and Trust Company took over
the handling of our funds was $4,566,051.82, a gain of $1,599,190.49. Of course, a
substantial part of this gain consists of additions to the funds, but also a large part is
represented by increased values

There have been sales, redemptions and conversions of securities during the year in the
amount of $613,671.76. Reinvestments during the same period amount to $574,678.50.

The gross adjusted income for the twelve-month period amounted to $298,110.03, which,
when related to the average book value during 1953 (weighted average by months) represents a
yield of 4.89%. This compares to the average yield of 4.87% for 1952 and 4.61% for 1951
The current yield on the investments which now constitute the fund is approximately 4.93%
of the present book value, or 4.07% of the current market value.

It is interesting to note the gradual increase in yield on the book value as follows

The close approach to the figure of 5% is worth noting.

The agent turned over to the Comptroller of the University during the year an aggregate
of $285,230.79, which represented net income after all deductions and expenses. Expenses to
he University of having the agent handle the fund, together with the four subsidiary accounts,
was approximately 20/100 of 1% of the average book value. This covers supervision and review
of investments as well as the custody of securities and the collection of income

There is an interesting table showing the units of investment whose market values show
a book loss of $5,000 or more, and those showing a book gain of $5,000 or more. The total
losses under this schedule aggregated $53,553.89. The total gains aggregated $1,364,161.20,
a net gain of $1,310,607.31.