• 2007 performance
• hmc annual report

HMC holds itself to high standards for investment performance applying three different metrics to measure our performance annually.

• First and foremost, 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. (Chart on Real Endowment Growth) In FY07, such distributions amounted to $1.1 billion, or more than three times the level of ten years ago (Exhibit 2).
• 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 3 and Exhibit 5, HMC has maintained a record of delivering long-term value add across the eleven (non-cash) asset classes in which it invests.
• Third, HMC regularly measures itself against similar institutions. It defines similar institutions using TUCS (Trust Universe Comparison Service compiled by Wilshire Associates) as the core metric for peer comparison. TUCS incorporates available data on 151 large institutional investors. Against this metric, HMC’s returns have compared very favorably.