1 Carleton College Endowment Faculty Presentation

2 MISSION Carleton’s Endowment plays a critical role in the operation of the College and in supporting its mission of educational excellence. The Investment Committee is charged by the Board of Trustees with the responsibility of directing the investment of the College’s Endowment. Source: Carleton College’s Investment Policy Statement

3 INVESTMENT OBJECTIVES The Endowment must provide a growing and consistent stream of financial support to the College’s annual budget in perpetuity. Given the need for consistent annual budget support, a portfolio of assets should be developed that satisfies the long- term return objective at an appropriate level of risk. A portfolio (target exposures and ranges for asset classes) that is expected to meet the above investment objectives will be set by the Investment Committee. This portfolio shall be referred to as the Policy Portfolio. The Policy Portfolio will serve as a guide for the actual allocation of assets. Source: Carleton College’s Investment Policy Statement

4 Performance

5

6 NACUBO 1 Estimates 1 National Association of College and University Business Officers. Performance estimated by Hammond Associates based on universe asset allocation.

7 Performance

8 Endowment Growth

9 Asset Allocation  A significant change in asset allocation policy was approved at the March 2007 Investment Committee meeting. Since that time, the College’s endowment portfolio has materially changed.  The asset allocation changes further diversify the portfolio while increasing expected returns.  Private Equity, Real Assets, and Marketable Alternatives (hedge funds) received larger allocations.  It takes time to diversify.

10 Asset Allocation

11 Endowment Growth History

12 Investment Committee Members  Wally Weitz ‘70, Chair, Wallace Weitz & Co. Public equities expertise  Leslie Kautz ‘80, Principal, Angeles Investment Advisors Asset allocation and governance expertise  Rich Kracum ‘76, Managing Director, Wind Point Partners Private equity expertise  Robert Nelson ‘62, Retired VP Financial Planning & Analysis, GE Governance and strategic planning expertise  Justin Wender ‘91, President, Castle Harlan Private equity and alternatives expertise  Jack Eugster ‘67, Retired Chairman and CEO, Musicland Stores Corporation Ex-officio member  Robert Oden, President, Carleton College Ex-officio member  John Winter ‘85, Head of European Investment Banking and Debt Capital Markets, Barclays Capital International advisor

13 Investment Office  Jason Matz, CFA, Director of Investments  Andrew Christensen, CFA, Investment Manager  Megan Bosco, Part-Time Investment Analyst  Daniel Singer, Investment Accountant  50 South Sixth Street, Suite 1440 Minneapolis, MN (612) (612) (fax) 

New Yorker … 14

New Yorker … 15 First Published: Feb 29, 1988