UM Regents Alter Endowment Policy

With dissent from two members, the University of Michigan board of regents voted to change UM’s endowment distribution policy, reducing the distribution rate from 5% to 4.5%, with a gradual implementation starting in the quarter that ends Sept. 30, 2010. Tim Slottow, UM’s CFO, told regents that the goal is to safeguard the corpus of the pooled endowment funds, which stand at an estimated $6.7 billion. Regents Julia Darlow and Denise Ilitch voted against the action. Darlow said it sends the wrong message to the public at a time when many families are struggling.

A detailed report of the July 15 meeting will follow: [link]