The Rice Management Company was established October 1, 2009, as a division of Rice University. The President of the Rice Management Company (RMC) is the Chief Investment Officer of the University. The RMC is responsible for all endowment matters of the university including asset allocation, the selection and termination of investment managers, investment consultants, and the master custodian, monitoring performance of investment managers and the entire portfolio on a regular basis, and reporting to the Rice Management Company Board of Directors.
Fiscal Year 2013 Update
The Rice endowment ended the fiscal year on June 30, 2013, with a value of $4.84 billion, up $418 million from one year ago and topping the previous high year-end mark of $4.67 billion set on June 30, 2007. This year’s investment return of 13.7 percent places Rice among the top performing large university endowments in the country and ranks it among the top 20 endowments, based on market value, of private research universities in the U.S.
The fiscal 2013 return outpaced the policy benchmark by 240 basis points. Energy and natural resources, public equities and private equity were the asset classes that helped drive those results. The increase of $418 million includes investment returns of $596 million and new gifts and transfers to endowment of $51 million, less spending to support operations of $229 million. The annual endowment payout is the single largest source of revenue to the operating budget and provided approximately 40 percent of total revenues in fiscal year 2013.
Rice’s endowment has also generated strong long-term returns. The annualized returns for the three-, five- and ten-year periods that ended June 30, 2013, were 13 percent, 5.3 percent and 9.4 percent, respectively. These returns have consistently outpaced the policy portfolio benchmark and a passive benchmark consisting of 35 percent U.S. stocks, 35 percent international stocks and 30 percent bonds.
The endowment is a consolidated investment pool composed of a large unrestricted portion which is approximately 52 percent of the total, and more than 1,700 funds with restricted purposes. The endowment funds are the permanent capital of the university and were established to provide a perpetual source of revenue for current operations and certain capital needs.
Rice Management Company