• 2008 performance
• hmc annual report

HMC applies three different metrics to measure annual performance.

• First, HMC seeks to preserve and enhance the future purchasing power of Harvard’s financial assets after taking into account annual distributions and the negative impact of inflation. (Exhibit 1).
• Second, HMC seeks to outperform the “neutral asset mix” that best corresponds to the University’s return objective and risk profile. That is to say, by undertaking active management rather than passively investing in a comparable “benchmark”, HMC should add value over and above its benchmarks. As seen in Exhibit 2 and Exhibit 3, HMC has maintained a record of delivering long-term value add across the asset classes in which it invests.
• Third, HMC regularly measures itself against similar institutions. It defines similar institutions using the TUCS median (Trust Universe Comparison Service compiled by Wilshire Associates) as the core metric for peer comparison. TUCS incorporates available data on large institutional investors. Against this metric, HMC’s returns have compared favorably.