Financial
Assets
The UM Foundation’s assets are held and managed in a variety of ways (see graph, right). The majority of the UM Foundation's assets are held in its Long-Term Investment Portfolio. Most funds held in this portfolio are related to endowed gifts where assets are invested in perpetuity, with regular annual payments made in accordance with the donor wishes. A very small portion of these funds are held in outside trusts and managed by others.
Operating Funds Portfolio includes funds given by donors for the immediate or near term use by the University. These are amounts used to provide current year scholarships, support to a wide variety of University programs, or funding for the construction of new University facilities. Also included in Operating Funds are funds available for the direct operation of the Foundation.
Annuity Assets are those donor funds used to generate annuities for their donors. These assets are held and managed on behalf of the UM Foundation by an outside firm that also provides fund administration to the UM Foundation’s planned giving donors. Prior to 2005, Annuity Assets were held in the Long-Term Investment Portfolio/Assets.
Other Assets consist primarily of trust assets managed outside the UM Foundation, donated real estate and pledge receivables.