The Michigan Daily - michigandaily.com
Monday, October 21, 2013 - 5A
The Michigan Daily - michigandailycom Monday, October 21, 2013 - 5A
ENDOWMENT
From Page 1A
increase from the previous year's
$270 million spending. However,
the vast majority of the endow-
ment cannot be used for general
fund and operational purposes
since most of it is restricted by
the donor's original intention for
their contribution.
The endowment earmarks
nearly 25 percent of its funds
for the University of Michigan
Health System and another 20
percent for student support and
financial aid. In a press release,
Slottow said the 20 percent
reserved for student aid has
reached $1.7 billion.
In terms of what is actually
withdrawn annually from the
endowment's total vaue, the Uni-
versity averages the value of the
endowment over the past seven
years then withdraws 4.5 percent
of the average for use each year -
allowing for more consistent cash
flews and protecting the principal
from market volatility. By basing
its spending on the average mar-
ket value instead of the current
market value, the University can
better stabilize distributions each
year - ensuring that programs
won't have a windfall one year
and nothing the next.
In an interview after the meet-
ing, Lundberg said the endow-
ment report reflects a changing
financial climate, as the nation
begins to inch out of the reces-
sion.
"Our changes tend to be grad-
ual, but right now they tend to
reflect that we've been recovering
from the financial crisis and that
the environment is normalizing,"
Lundberg said.
The University's endowment
portfolio also includes a small
program that invests in faculty
entrepreneurs called Michigan
Investment in New Technology.
The program was first introduced
by University President Mary Sue
Coleman in October 2011.
"There's been great reception
by the entrepreneurs and we're
very excited about the ability to
support our own businesses,"
Lundberg said. By July of this
year, the University had funded
seven startups.
Lundberg said the initiative
is in its early stages and the
investments will take time to
mature.
In a July interview, Rafael Cas-
tilla, the University's investment
risk management director, said
the University will likely hold on
to these investments for at least a
decade.
"We havegenerallyaverylong-
term horizon," he said. "We hope
there's going to be a return, but
we're in no rush to sell as soon as
possible.
In their conclusion to the
report, Lundberg and Slottow
wrote that the University's long-
term investment strategy is suffi-
cient for success in the future.
"Financial markets appear to
be normalizing with greater dis-
tance from the financial crisis
which should be rewarding for a
globally diversified investment
program," Slottow and Lundberg
wrote. "We remain confident in
our investment strategy and the
endowment's ability to continue
to provide support."
The last decline in the Uni-
versity's budget came in 2012,
with the endowment's total value
falling by 0.5 percent - mark-
ing the first time the endowment
decreased in value since 2009.
The 2009 downturn was caused
by the 2008 financial crisis and
.succeeding recession.
- Daily News Editor Peter
Shahin contributed reporting.
EVENT
From Page 1A
Regent Denise Ilitch (D-Bing-
ham Farms) and University alum
Steve Hutchinson, former offen-
sive guard for the Michigan foot-
ball team whose collegiate career
was followed by a 12-year stint in
the NFL.
Hutchinson and his wife
were called in to be the master
and mistress of ceremonies for
the event. An auction-style fun-
draiser at the end of the night
raised approximately $150,000
in support of breast cancer
research.
One highlight was remarks
from Flora Migyanka, a mother
of two and a survivor of breast
cancer who underwent exten-
sive treatment at the University
Hospital. With the example of
Migyanka's survival, physicians
present at the event stressed the
pervasiveness of the disease.
"You know what I think? I
think this is unacceptable," Ora
Pescovitz, executive vice presi-
dent for medical affairs and CEO
of UMHS, said in her remarks
aboutthe disease that kills nearly
40,000 women a year.
Several attendees, including
current medical students, said
their support was in concern
over a reduction in federal fund-
ing for research.
Sofia Merajver, scientific
director of the Breast Oncology
Program, said the reduction in
government funding for medical
research could be balanced out
by the recent increase in commu-
nity interest and philanthropic
involvement. To put it into per-
spective, Meraiver said $5,000
only funds about five days of
intensive research in a typical
laboratory.
The future of breast cancer
research lies in understand-
ing the genomic changes in the
tumors of every person rather
than complying with a one-
size-fits-all model of treatment,
Merajver explained.
"Cancer research is expen-
sive, but at the same time the
value that yoq get at a univer-
sity is huge because we are
doing research all the time,
and the money goes directly for
research," Merajver noted. "It's
a very efficient way to discover,
and our goal is to really discover
new knowledge."
BUSINESS
From Page 1A
big names."
The conference kicked off
with a presentation by Michigan
Athletic Director Dave Brandon
and other representatives from
the Athletic Department, who
outlined the University's plan to
construct 16 new athletic facili-
ties within the next five to seven
years.
The keynote conversation
between ESPN President John
Skipper and ESPN Commentator
Mike Trico discussed the evolv-
ing industry of sports coverage
and sports culture.
"There are a lot harder ways
to make a living that working in
sports. Almost all of them ... you
just kind of feel lucky," Skipper
said.
During Skipper's 14 years at
ESPN, he has been involved in
television, digital and print initia-
tives. He emphasized during his
speech the importance that alter-
native forms of media play in the
growing media industry.
In addition to the keynote con-
versation, there were breakout
sessions, networking opportuni-
ties and panel discussions held
throughout the day.
Tom Lewand, president of
the Detroit Lions football team,
participated in a panel discus-
sion regarding the importance of
cultivating a loyal fan base in the
growing sports world.
Lewand said in an interview
that a key factor for students
pursuing a business career in the
sports industry is to make sure
they don't limit themselves. He
said University students are com-
petitive because of a "high level
of intelligence" combined with a
"Midwest sensibility."
"Keep working at it," Lewand
said. "Look at all the different
ways that you could possibly get
engaged in any business that has
to do with the business of sports
- on the brand side, agency side,
the service side - there are just so
many different ways."
Ten non-University students
were honored through MSBC's
inaugural BIG Initiative - an
acronym for Build, Inspire, Grow
- which looks to honor students
from around the country who
excel in academics and athletic
endeavors.
This year, organizers put a
bigger focus on social media
and technology. MSBC was also
able to attract more high-profile
speakers and connect them to stu-
dents in a "one-on-one" environ-
ment, with plenty of networking
opportunities.
Many students in the Kinesi-
ology and Business school were
in attendance Friday. Kinesiol-
ogy graduate student Xiaochen
Zhou said she cameto the event to
learn from professionals and gain
knowledge of what the sports
business industry is like.
"Because we are international
students it gave us some insight
into the job market in America,
especially the American sport
industry," Zhou said. "It's very
different from what business is
like in China. I think it will be
very helpful."
The event was capped off with
a surprise Skype interview with
University alum Adam Schefter,
an NFL analyst for ESPN and
former sports writer at The
Michigan Daily. Students tweeted
questions to Schefter about his
days at the University and his
start in the sports industry.
"I don't have any skills - I
just work hard," Schefter said.
"Everyone that I deal with knows
that they can trust me."
MSBC will start planning next
year's conference in the com-
ing months. Business junior Alex
Lieberman, a MSBC commit-
tee member, said the committee
members are looking to expand
the conference nextyear and bring
in more representation from out-
side of the University community.
UNIVERSITY OF MICHIGAN
The University released renderings for the expansion of the Earl V. Moore building on North Campus;
RENOVATIONS
From Page 1A
es. The project will cost $185 mil-
lion, with $100 million funded by
a donation from University alum
Charles Munger, vice chairman
of Berkshire Hathaway. The new
residence will be home to around
630 graduate students.
The regents also approved
construction of a new transpor-
tation research facility, spon-
sored by the University and
grants from the State of Michi-
gan's Department of Trans-
portation. Coleman lauded the
project and noted Stephen For-
rest, University vice president of
research, had lobbied the board
to approve the project.
Between the approval of
upcoming construction projects,
the regents also approved two
name changes on the athletic
campus in honor of University
donors. After donating $200 mil-
lion to the University's business
school and athletic department
last month, the regents voted to
rename much of South campus
as the Stephen M. Ross Athletic
Campus. The University will also
rename the renovated softball
facility after University alum
Donald R. Shepherd, who previ-
ously donated $25 million to the
University.
The board also approved plans
to relocate Reserve Officers'
Training Corps, or ROTC, opera-
tions from North Hall to the
Chemistry Building, Dow Labo-
ratory and Ruthven Museums.
The University will renovate
spaces within those buildings to
better house the program - at a
cost of $4 million.
Approximately 15,000 square
feet of renovated office space
will be transformed into physi-
cal fitness-rooms, administrative
function spaces and classrooms
in the Chemistry Building and
the Dow Laboratory. Approxi-
mately 6,000 square feet of the
Ruthven Museums will include
classrooms and storage spaces.
The project is slated for com-
pletion in fall 2014 and will be
designed by architectural firm
SmithGroupJJR - a contractor
frequently used by the Univer-
sity.
At the meeting, Tim Slottow,
executive vice president and
chief financial officer, said he
is ready to propose to demol-
ish North Hall. Although the
purpose of the space has yet to
be determined, Coleman said in '
an interview Monday the build-
ing will be part of a "larger con-
struction plan," which will be
rolled out during this academic
year.
North Hall was constructed
between 1899-1900 as a Home-
opathy Hospital but became an
extension of the main Univer-
sity Hospital after the regents
discontinued the independent
Homeopathic Medical School in
1922. It was turned over to the
Navy in 1940 and has been an
ROTC facility ever since.
CAFt
From Page 1A
late-nightchours at Bert's last year,
Proppe said.
Engineering junior Jasleen
Randhawa, chair of the Commis-
sion on North Campus Life, said
she and many of her engineering
classmates have wanted Mujo to
run later into the night because of
significant time spent working at
the Dude.
"Being able to have a kind of
healthy option for food and not
having to order pizza out every
night is something that we felt
was really important," Randhawa
said.
Randhawa said Mujo's menu
should meet most of the demand
for better late-night food. How-
ever, other options, such as a fea-
tured entree from the cafe, are
also in the works.
"This is great for students
studying late on North Campus,"
said CSG Vice President Bobby
Dishell. "When students are
well-fed and well-hydrated, they
can study longer and be health-
ier."
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U.S., Israel divided on
relationshin with Iran
U.S. considers
easing pressure as
Israel asks for more
JERUSALEM (AP) - Just
days after the first round of
global nuclear talks with Iran,
a rift appears to be emerging
between Israel and its closest
ally, the United States.
Israel's prime minister on
Sunday called on the U.S. to step
up the pressure on Iran, even
as American officials hinted at
the possibility of easing tough
economic pressure. Meanwhile,
a leading Israeli daily reported
the outlines of what could be
construed in the West as genu-
ine Iranian compromises in the
talks.
The differing approaches
could bode poorly for Israel as
the talks between six global
powers and Iran gain steam in
the coming 'months. Negotia-
tors were upbeat following last
week's talks, and the next round
of negotiations is set to begin
Nov. 7.
Convinced Iran is pursu-
ing nuclear weapons, Prime
__ 1
Minister Benjamin Netanyahu
believes the Iranians are try-
ing to trick the West into eas-
ing economic sanctions while
still pushing forward with their
nuclear program. Iran insists
its program is for peaceful pur-
poses.
"I think that in this situa-
tion as long as we do not see
actions instead of words, the
international pressure must
continue to be applied and
even increased," Netanyahu
told his Cabinet. "The greater
the pressure, the greater the
chance that there will be a
genuine dismantling of the
Iranian military nuclear pro-
gram."
Israel considers a nuclear-
armed Iran a threat to its very
survival, citing Iranian refer-
ences to Israel's destruction.
Netanyahu says pressure
must be maintained until Iran
halts all enrichment of ura-
nium, a key step in producing
a nuclear weapon; removes its
stockpile of enriched uranium
from the country; closes suspi-
cious enrichment facilities and
shutters a facility that could
produce plutonium, another
potential gateway to nuclear
arms.
Despite Netanyahu's warn-
ings, there are growing signs
that any international deal
with Iran will fall short of his
demands.
Over the weekend, U.S. offi-
cials said the White House
was debating whether to offer
Iran the chance to recoup bil-
lions of dollars in frozen assets
if it scales back its nuclear pro-
gram. The plan would stop short
of lifting sanctions, but could
nonetheless provide Iran some
relief.
In an interview broadcast
Sunday on NBC, U.S. Treasury
Secretary Jack Lew said it was
"premature" to talk of easing
sanctions. But he stopped short
of endorsing the tough Israeli
line and suggested the U.S.
would take a more incremental
approach in response to con-
crete Iranian gestures.
Asked whether he was wor-
ried the U.S. might ease the
sanctions prematurely, Netan-
yahu urged against a "partial
deal" with Iran. "I don't advise
doing that," he said on NBC's
"Meet the Press."
I