President's Annual Report
Despite a challenging environment, we again finished the year with an excess of revenues over expenses, reflecting the dedication of all departments to careful and thoughtful financial management. These results include, of course, our continued commitment to key principles of the College, including fulfilling need-blind admission and meeting all need.
Last year's decline in the equities markets and the resulting impact on endowments have been issues of great concern to colleges and universities of every size and stature, across the nation. As the market began to decline in 2001, the Investment Committee of the Board of Trustees began a review of its guidelines for the College investment portfolio. Their actions also included a number of steps, including revising the equities orientation of the portfolio to over-weight value over growth; replacing the three growth equity managers; significantly reducing asset allocation ranges; and adding a new yield-oriented investment portfolio to reduce volatility.
For the first time in three years, CMC's endowment ended the year in positive territory of 1.36%, or 111 basis points above the S&P 500 index for the year ending June 30, 2003. This is 193 basis points ahead of the Dow Jones index of negative 0.57 for the same period.
In addition, the College's fund-raising efforts exceeded slightly the $17 million goal. This is particularly impressive given the profound impact of recent economic challenges on charitable giving overall. We have also filled several important development staff positions approved last year by the Board of Trustees, and look forward to another strong year from the advancement team.
The College also received several key gifts in 2002-2003 that support a number of priorities identified in the Strategic Plan, including:
- Two new endowed chairs in the Department of History, gifts of John V. Croul'49, and Linda and Abbott Brown P'00;
- Operating funds to support the launch of the Center for the Study of the Holocaust, Genocide, and Human Rights, from AnneMerie Donoghue and Leigh Crawford '94;
- $1.2 million in trustee pledges toward the College's most important current capital projects, Phase I of the Athletic and Recreation Center, and the North Quad expansion;
- An endowment to fund fellowship awards and related grants in the form of financial aid, merit awards, or preferential packaging for upper-level students interested in careers involving asset management and investment management, a gift of Michael Larson '80; and
- A $700,000 grant from the Irvine Foundation to primarily support the College's efforts to recruit a more diverse faculty.