Home > News > Asset Allocation > Notre Dame, University of Chicago Endowments Return 7.2%, 6.9%
Asset Allocation

Notre Dame, University of Chicago Endowments Return 7.2%, 6.9%

Portfolios grow to $13.8 billion and $8.5 billion respectively.
By Michael Katz

The investment portfolios for the University of Notre Dame and the University of Chicago endowments returned 7.2% and 6.9% respectively for the fiscal year ending June 30

Notre Dame’s 7.2% return helped increase the endowment’s asset value by $700 million, but was well below last year’s 12.2% returns..  The annualized return of the Notre Dame endowment pool over the past 20 years was 10%, according to the University, which said placed its long-term results in the “top tier of institutional investors.” By comparison, a 60-40 index blend of stocks and bonds returned 5.5% over that same period.

According to the university, its actively managed investment program created $8.3 billion of value-added, compared to the 60-40 index blend for the 20 years.

Notre Dame said it will distribute more than $154 million in need-based grant aid for undergraduate students during the current academic year, an amount that has more than doubled since 2009.

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The University of Chicago’s endowment hit an all-time high of $8.5 billion with its 6.9% return. According to the University of Chicago’s Office of Communications, the endowment’s portfolio has earned annualized returns of 9.1%, 8.3%, and 8.2% over the past 10, 15, and 20 years respectively.

Additionally, investment returns have added nearly $5.9 billion in market value to the endowment since the financial crisis in 2008 and 2009. And over the past 25 years, the endowment’s value has grown nearly eight-fold to $8.5 billion from $1.1 billion.

“We continue to believe that an integrated approach to the university’s fiscal health will best support our mission in all types of market conditions on a long-term basis,” said University of Chicago CIO Mark Schmid in a statement.

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Notre Dame Returns 12.2% in Fiscal 2018

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Home > News > Risk > PBGC Takes Over Bankrupt Verity Health System’s Pension Plans
Risk

PBGC Takes Over Bankrupt Verity Health System’s Pension Plans

Pension insurance to assume benefit payments for 8,000 members.

By Michael Katz

The Pension Benefit Guaranty Corporation (PBGC) is assuming responsibility for two pension plans sponsored by El Segundo, Calif.-based Verity Health System, which has filed for Chapter 11 protection.

The two plans, the Verity Health System Retirement Plan A and the Verity Health System Retirement Plan Bcover nearly 8,000 people. The Verity Health System Retirement Plan A is underfunded by approximately $306 million, while the Verity Health System Retirement Plan B is underfunded by approximately $2.8 million.

PBGC will pay pension benefits earned by Verity’s current and future retirees up to the legal limits.

According to the PBGC, both Verity Health System pension plans are covered under Title IV of ERISA. However, because neither pension plan has been covered by PBGC’s insurance program for five years, payments will be affected by the five-year phase-in limit on PBGC’s benefit guarantee for new and newly covered plans that begins with the date of coverage.

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Plan members who are already receiving a pension from Verity Health System will continue to receive payments without interruption in the annuity form chosen at retirement. However, in several months, the PBGC will adjust benefit payments to an estimate of the amount required by law. For those not yet receiving a pension, the PBGC will pay an estimated benefit when they become eligible and apply for pension benefits.

According to the PBGC’s preliminary analysis, almost everyone covered under the pension plans will receive reduced benefits because the pension plans were insured by PBGC for less than three years when the company entered into bankruptcy. The PBGC will pay retirees estimated benefits while it completes the auditing, actuarial and legal work necessary to determine exact benefit entitlements under the law.

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