How has the distribution policy in the past affected the internal growth of the LTF?
The LTFs investment and distribution policy has been positioned to balance the needs of present and future beneficiaries by distributing only a portion of the market value of the endowment each year. For the five and ten year periods ended August 31, 2007, the LTFs distribution rate has averaged 4.69% and 4.51% of trailing three year average net assets, respectively, while the average annual total return for the same time periods have been 14.54% and 9.62%, respectively. Consequently, reinvested earnings, the difference between the total returns and the distribution rates over the time periods, provide the cushion to support the endowments educational programs in the future, while still meeting the needs of current beneficiaries.
