University of Notre Dame, Notre Dame, Ind., will be allowed to invest qualified charitable remainder trusts it oversees in its $5.75 billion endowment under an IRS ruling, said M. Jean Gorman, assistant vice president for development and executive director for individual and institutional giving at Notre Dame. The amount to be invested has not been determined.
The ruling will allow some of our current CRTs and all new CRTs to be invested in our endowment pool, said Scott C. Malpass, vice president and CIO at the Notre Dame investment office, which oversees the endowment. The endowment pool is a unitized pool so the trusts will simply purchase units in the pool like a mutual fund and automatically receive the total rate of return from the pool going forward.
We will start investing CRTs in the pool next quarter, now that we have communicated the ruling to our donors, Mr. Malpass added.
The endowment fund returned 19.42% for the year ended June 30, compared with 16.72% for its customized benchmark, according to its annual report. The endowment funds asset allocation is 28% event-driven hedge funds, 18% private equity, 17% non-U.S. equity, 15% each U.S. equity and real estate, and 7% fixed income.
The IRS made the ruling in December, but Notre Dame didnt announce it until this month because of due diligence undertaken following the decision, Ms. Gorman said.