Center-invest Bank presented the management results for the “Education and Science of the Southern Federal District”, Southern Federal University, and Don State Technical University Endowment Funds. The weighted average return amounted to 9.62%.
Center-invest Bank is currently managing the capital of the three endowment funds for southern Russia, with a total net asset value of 185.7 million rubles: the “Education and Science of the Southern Federal District” Fund since 2007, the Southern Federal University Endowment Fund since 2009, and the Don State Technical University Endowment Fund since 2012.
Center-invest Bank’s management of the largest endowment funds in southern Russia demonstrates the stability of the selected conservative strategy in the context of the markets’ volatility and uncertainty.
This sustainable practice allowed to avoid losses during the crisis and to demonstrate an overall average return of 8.96–9.75%. Over the same period, the average annual inflation rate was 7.1% and the return on the Government Securities Index was 7.94%.
| Endowment fund | Total net asset value as of 01/06/22, million rubles | EF beneficiaries income during management period, million rubles | Average return, % |
|---|---|---|---|
| Education and Science of Southern Federal District | 116,6 | 104,9 | 9,75 |
| Southern Federal University | 45,1 | 22,3 | 9,6 |
| Don State Technical University | 24 | 8,3 | 8,9 |
Endowment funds are an effective financial instrument for legal and targeted business support of education and science. The endowment is formed based on the founders’ funds, individual donations, as well as public fundraising. This is a long-term education support programme that allows to unite the efforts of all stakeholders and businesses, as well as to use the best international practices to support education in southern Russia.