Trusted Financial Management

Princeton serves as trustee for more than 300 charitable trusts with a market value of more than $140 million and over 300 beneficiaries. The assets of the other gift arrangements offered by the University, such as pooled income funds and charitable gift annuities, are valued at more than $40 million and involve some 300 income beneficiaries.

2013 Annual ReportPerformance of Your Investments

Princeton reports overall performance of its gift planning program assets to donors in the Gift Planning Annual Report.

You may view or download as a pdf document, or request a printed copy by e-mail: 1746soc@princeton.edu

Management of Your Investments

Princeton’s Office of Finance and Treasury oversees the investment of the University’s gift planning assets and works closely with the University’s gift planning office to help ensure that your gift arrangements operate smoothly and that you receive timely payments and tax information.

Princeton University Investment Company (PRINCO), which is responsible for the management of the University's endowment, offers support to Princeton's gift planning program and provides ongoing performance review of external managers.

BNY Mellon Wealth Management works under the direction of Princeton as custodian and administrator for the trusts and pooled income funds.

Taking the First Step

Princeton's professional gift planning staff can walk you through each step of the gift process, explain the administrative details, and help with paperwork. If you are considering making a gift, we recommend that you first consult with your lawyer. When you decide to make a gift, we can provide you with a draft gift agreement for your attorney’s review.

Investment Strategy

Charitable Trust Investment

PRINCO sets the investment allocation formula for charitable trusts, and selects and evaluates external specialists to handle day-to-day investment decisions.

The asset allocation for the trust accounts is currently 85% equity (stocks and real estate) and 15% fixed income (bonds), with the goal of long-term growth of principal. Of course, investment performance is not guaranteed. Trust values may decline, resulting in lower payments for unitrust beneficiaries. Over the ten-year period ending on December 31, 2012, Princeton's trusts have produced a compound annual investment return of 8.7%.

Equity Strategy
Grantham, Mayo, Van Otterloo & Co. LLC (GMO) continues to manage the charitable trust investment portfolio, except for the fixed income category. GMO uses both fundamental research and quantitative methods to find undervalued assets across markets around the world. GMO has produced strong long-term results relative to benchmarks.

Fixed Income Strategy
PRINCO has selected John W. Bristol & Co., Inc. to manage the fixed income portion of all trust and pooled fund portfolios through its Core Fixed Income Strategy. The objective of this strategy is to maximize portfolio yield and total return relative to its benchmark (the Barclays Aggregate Bond Index).

Pooled Income Fund Investment Strategy

GMO manages the bulk of the equity portion of Princeton’s Balanced and Tiger Funds. Both Princeton’s Balanced and Tiger Funds also invest in funds managed by The Vanguard Group. In the Balanced Fund, Vanguard’s Equity Income Fund adds to the dual goals of growth and income. Vanguard’s REIT Fund provides broad exposure to publicly traded real estate companies, which produces steady quarterly income to both Balanced Fund and Tiger Fund beneficiaries.

As with the charitable trusts, Bristol manages the fixed income portfolio for all three of Princeton’s pooled funds.

Each of the University's pooled funds maintains a distinct asset allocation:

Income Fund: Objective is to provide high current income.

Balanced Fund*: Objective is to provide a balance between long-term growth in unit values and corresponding growth in income over time.

Tiger Fund: Objective is to provide long-term growth in unit value resulting in higher income over the long term.

*The Balanced Fund is closed to new donors. However, as with the Tiger and Income Funds, additions to the Balanced Fund by existing donors are always welcome.