How does the university distribute earnings from endowments?

The LTIP works like a mutual fund in that there are “shares” owned by different funds, and earnings are distributed across the funds.

Distributions to each fund are made at the beginning of every fiscal year. The university's policy sets annual distributions at 4.5 percent of the five-year moving average of the market value per share of the LTIP.

By utilizing a five-year moving average for distributions, this formula provides stability and avoids sudden changes in funding from year to year that could result from market dynamics.