Growing the Endowment

Prop 102’s impact on the endowment

Since July 1999 Treasurers’ Investments Total Earnings are $572 million
Equity investments have grown the endowment $270 million since July 1999
Dec 2006 - $401.5 million in unrealized gains
67.2% from equities
32.8% from fixed income securities
Net Distribution since July 1999 is $380 million
New Prop 102 formula has returned $192 million in earnings to the principal

The above graph shows the realized rate of growth since Prop 102. Distributions are slow at the beginning of this policy shift, but as the principal grows, and the base gets larger, the distributions will catch up.

July 1999 – Treasurer’s office began investing in equities
FY 2000 - Prop 102 transitional distribution formula in effect
March 2003 – Endowment reaches 50% in equities invested
FY 2004 old distribution formula ends, new Prop 102 constitutional distribution
formula first used
2004-2006 most earnings returned to the endowment principal for inflation
protection

The above graph shows the projected rate of growth based upon: no new land sales, a 2.5% inflation rate, and 7%-8% average rate of return.

The above graph shows the forecasted rate of growth conservatively based upon: no new land sales, a 2.5% inflation rate, and 7%-8% average rate of return.

Upcoming Meetings

Board of Investment
MAY 21 10:30am
Quarterly Meeting & Conference Calls
JUL 24th
Download archived presentation

Please note: All meetings are open to the public.

Contact:
(602)-604-7800
Toll Free:
1-877-365-8310
Fax:
(602) 542-7176
Email:
info@aztreasury.gov