LeaderNotes
A newsletter for Foundation directors and friends of higher education in Maryland

Letter from the President
 
Dear Friends and Colleagues,
 
It has been a busy summer of transitions for us at the USM Foundation, with new USM Chancellor Bob Caret jumping right into the role. Over the last two months since returning to Maryland, he has met with some key state leaders and members of the higher education community to reintroduce himself and discuss his priorities. A listening (bus) tour this October will provide him a chance to visit every region of the state and listen to the voices of the business and education community, to help USM contribute even more strongly to Maryland's growth. We have also been hard at work planning his inauguration ceremony, which will be held in November. It is wonderful to have yet another opportunity to work with Bob and collaborate on the advancement priorities of the USM and its institutions.
  
With these last days of summer quickly approaching, I hope you all have a chance to enjoy some rest and relaxation with your friends and family before things begin to pick up again. A
s always, please contact me at raley@usmd.edu or 301-445-1941 with any questions or comments.
 
Sincerely,
  
Leonard R. Raley

June 2015 Investment Office Update
 
In June, the Greek debt crisis dominated headlines, and equity markets tumbled as investors braced for a potential Greek exit from the Eurozone. China's local A-Share market experienced a rout, declining 17% from its intra-month peak. Meanwhile, Puerto Rico announced the possibility that it would default on its debt, causing bond markets to sell off significantly and leaving investors with little reprieve.

Investment Performance Through June 30, 2015


Endowment %
S&P 500%
Endowment Strategic Policy Portfolio BM(1)
80/20%
June 2015
-0.90%
-1.94%-0.91%-1.77%
FYTD 2015
4.00%
7.42%4.47%6.37%
CYTD 2015
3.09%
1.23%3.14%1.03%
3 Yr AACR
7.72%
17.31%10.85%14.12%
5 Yr AACR
8.15%
17.34%10.66%14.56%
 
1] From inception to present: 40% MSCI ACWI, 10% HFRI Fund of Funds Composite Index, 10% Russell 3000 + 300bps, 10% HEPI + 500bps, 10% NCREIF ODCE +200bps, 10% Barclays Aggregate Bond, 5% BofA ML HIGH YIELD MASTER II + 200bps, 5% BofAML 3-MONTH US T-BILL


Two local developers in Salisbury have donated a historical building worth $4.4 million to Salisbury University, which will go a long way in helping the school create a stronger presence in downtown Salisbury. A working group at Salisbury will develop a plan for the building that supports the needs of the university and encourages downtown revitalization, investment, and growth. Donors Palmer Gillis and Tony Gilkerson each have ties to Salisbury University, with Gillis receiving his B.S. in Business from the university in 1975 and Gilkerson being the father of two graduates from Salisbury's Franklin P. Perdue School of Business. The donation will be processed through the Salisbury University Foundation and must be approved by the USM Board of Regents prior to acquisition.


The University of Baltimore School of Law and the University of Maryland Francis King Carey School of Law have partnered to create a new legal incubator program. The incubator will help five or six recent graduates begin their private practices by offering guidance and resources such as office space and malpractice insurance, while Maryland clients can receive low cost or pro bono services in return. Participants will have a year to 18 months to get their practices up and running, and the schools hope to begin the incubator in November, once graduates have had an opportunity to pass the bar exam.

 
A U.S. Department of Education grant intended to help first-generation college students was recently awarded to thirteen Maryland colleges, including USM institutions Bowie State University; University of Maryland, College Park; Frostburg State University; and Salisbury University. The funds are meant to help schools provide academic tutoring, help in selecting courses, information about financial aid, and support in transferring from two-year to four-year colleges to first-generation students. They can also be used for counseling and career guidance, housing assistance during breaks, and cultural events. Other recipients of the grants include USM Foundation partners Allegany College of Maryland, Community College of Baltimore County, Howard Community College, and Hagerstown Community College.

August 2015
Vol. 9, Iss. 8
In This Issue
USM News Briefs   


University of Maryland Center for Environmental Science alumnus Ryan Powell has figured out a way to harvest algae and turn it into crude oil. The doctoral graduate discovered the technique while at the Institute of Marine and Environmental Technology in Baltimore and has translated his laboratory work into a Baltimore-based biotechnology firm called Manta Biofuel. His objective is to convert the oil harvested from algae and turn it into jet fuel, fuel oil, and diesel fuel to provide alternative renewable resources.

 
Beginning Spring 2016, students will be able to earn a Bachelor of Science in Business Administration with a concentration in Hospitality Management from FSU. Introductory classes will be offered online through UMES' hospitality management program prior to on-site courses at Vanung University in Taiwan. The collaborative program aims to help students begin their careers in Western Maryland's tourism industry while providing global experiential learning opportunities.
Trends in Philanthropy

 
Crowdfunding seems like an easy way to raise money - but it is a lot easier said than done. As any good fundraising professional knows, campaigns take a lot of effort before the launch, during the campaign, and after. Listed are the biggest misconceptions about crowdfunding from the crowdfunders themselves.
Staff Member News

One of our Investment Office interns, Harsha Neerchal, received a full-time job offer from JMI Equity, the Baltimore-based private equity group. Harsha is currently a senior at the Robert H. Smith School of Business at the University of Maryland, College Park and has interned with the USM Foundation for two years. The Investment Office played a role in facilitating his summer internship at JMI and were thrilled to learn of the job offer, which will go into effect upon his graduation. In the meantime, he will be rejoining us this fall for a third year of interning. 

Congratulations, Harsha!

Jess Gill

Editor, LeaderNotes

301-445-2743

jgill@usmd.edu