14th June 2018

The Oxford Endowment Fund Report 2017

Oxford University Endowment Management (OUem) has published the Report of the Oxford Endowment Fund 2017, which outlines the long term performance of the Fund to 31 December 2017.

Over the nine years since inception of the Fund in 2009, OUem is pleased to report that we have exceeded our investment objective of generating a 5% real return for our investors. During that time period, the Oxford Endowment Fund has annualised at 10.0%, a 7.7% real return over the Consumer Price Index. Growth through performance alone has added £1.2bn to the collegiate University’s endowments.

Since inception of the Fund, the annual distribution per unit has grown by 42.9%, against CPI of 22.7%, meaning money available for the beneficiaries of the Fund has grown in real terms, alongside growth in the size of the original charitable trusts. The distribution from the Fund in 2017 was £93.1m and total distribution since inception is £496m.

OUem now manages over £3bn of permanent charitable endowment on behalf of 32 investors across the University: 25 colleges, six collegiate trusts and the central University. The University’s endowments contribute to the development of academic excellence, research capabilities and student experience, all of which maintains the University’s global status. Successful endowment management is critical to ensuring that academic activities can be funded for current beneficiaries and future generations.

Managing endowment capital gives us a genuine multi-year time horizon and investments are made for the very long term. While short term performance over fixed periods therefore provides little informational value, the Fund returned 9.2% in 2017. Over five years, the Fund has annualised at 11.7%.

Full performance and activity information is available in the OEF Report on pages 35 to 37.

About OUem and the Oxford Endowment Fund (OEF)

Inception of the Oxford Endowment Fund is 1 January 2009. OU Endowment Management is a team of 24 based in Oxford, including both investment and finance professionals (team details on page 38 to 39 of the Report, and on www.ouem.co.uk). OUem is wholly owned by the University of Oxford, and the investment manager to the Oxford Endowment Fund. Investors (listed on page 6-7 of the Report) buy units in a discretionary vehicle and the colleges choose to invest in the Oxford Endowment Fund.