University of Minnesota Foundation Reports Strong Investment Gains, Continuing Giving Momentum for the U

Contact: Martha Douglas, University of Minnesota Foundation, (612) 626-9712

MINNEAPOLIS/ST. PAUL, November 18, 2003 – The University of Minnesota Foundation reported an outstanding investment performance on its endowment and continuing momentum in giving following the close of Campaign Minnesota. In addition, it elected new officers and members of its board of trustees at its annual meeting Saturday, November 8.

The Foundation’s endowment increased to $785 million in fiscal 2003, compared with $742 million the previous year. The annual investment return through September 30, 2003 was 18.1 percent.

“We’ve seen regular but modest increases in our investment performance, but our most recent results are impressive,” said Gerald B. Fischer, president and CEO of the University of Minnesota Foundation. “I am very proud of our investment team, which has guided us through a challenging financial environment in excellent shape.”

Investment of the Foundation’s endowment is managed by the University of Minnesota Foundation Investment Advisors, a nonprofit subsidiary.

In September the University announced that it had raised $1.66 billion through Campaign Minnesota, which lasted from July 1996 through June 2003. Since then, giving to the University has remained strong, according to Fischer. “Several major gifts since the campaign close point to continued momentum,” he said. “One example is a gift of $1 million from David and Joan Henle for an endowed faculty chair in electrical engineering in honor of David’s parents, Robert and Marjorie Henle.”

Robert Henle received bachelor’s and master’s degrees in electrical engineering from the University in 1949 and 1951, and went on to a distinguished career at IBM. The holder of 48 patents in the area of computer technology, he laid the foundation for the development of the first solid-state computing system. He was recognized as a pioneer in applying semiconductor devices to computer memories and in understanding how the technology would affect computer design. Marjorie Henle graduated from the U in 1950.

In reviewing fund-raising results for the fiscal year ended June 30, Fischer noted that the U’s cost to raise a dollar was only 9 cents, compared with 12.1 cents for the prior year. This is considerably less than national averages. Total gifts, including pledges and deferred gifts, totaled $234 million for the fiscal 2003, an increase of 42 percent compared with the $165 million raised the previous year.

“Campaign Minnesota, which ended in July, helped us in reaching this new level of giving,” said Donald F. Wright, outgoing chair of the University of Minnesota Foundation. “It has been especially gratifying to achieve these results during a time that has been difficult, financially, for many of our donors.”

At its annual meeting, the Foundation board elected new officers. Incoming chair of the Foundation is Diana Murphy, a judge on the U.S. Court of Appeals. Elected as vice chair is Marilyn Carlson Nelson, chair and CEO, Carlson Companies, Inc. Continuing as treasurer is B. Kristine Johnson, principal, Affinity Capital Management, and as secretary, Stanley S. Hubbard, chair, Hubbard Broadcasting, Inc.

Elected as new board members were: Elliot S. Kaplan, partner in Robins, Kaplan, Miller and Ciresi; W. James McNerney, Jr., chairman and CEO of 3M Company; David R. Metzen, chair of the University of Minnesota Board of Regents and director of American Bank; and Charles W. Mooty, president and CEO of International Diary Queen.

Also, Jim Aagaard was elected Vice President, Information Services and Chief Information Officer. Aagaard has been with the Foundation since 1985.

The University of Minnesota Foundation, founded in 1962, is an independent, non-profit organization that builds greatness at the University of Minnesota by raising and managing gifts from alumni and friends.

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