WASHINGTON, March 27, 2008 (AFP) - America's Harvard University said Thursday it had appointed Jane Mendillo to manage its giant 35-billion-dollar investment portfolio marking the first time a woman will run the fund.

Mendillo will take management control of the country's largest university endowment fund on July 1. A Harvard University spokesman declined to comment on what Mendillo will be paid to run the multibillion dollar Harvard Management Company (HMC).

'Jane Mendillo has an excellent record as one of the most able and accomplished investment managers in the endowment world,' said James Rothenberg, Harvard's treasurer and the chair of the HMC board of directors.

Mendillo said in a statement issued by the top-ranking US university that she was 'pleased' to be returning to the investment fund, albeit this time as its president and chief executive.

A qualified financial analyst, Mendillo had previously worked for HMC for almost 15 years before leaving in 2002 to take up a post as the chief investment officer of Wellesley College which like Harvard is based in the northeastern US state of Massachusetts.

HMC, which seeks to maximize returns through a range of investment strategies, has been seeking a new CEO since its former chief, Mohamed El-Erian, stepped down last year to rejoin the PIMCO investment management firm.

The Harvard spokesman said HMC does not disclose its investments, but such funds typically invest in a range of securities and other instruments spanning domestic and international markets.

Mendillo holds degrees from Harvard's rival college, Yale University, and worked as a management consultant for Bain and Company in Boston earlier in her career.

She received an Industry Leadership Award granted by 100 Women in Hedge Funds last year.

Harvard's endowment was set up in 1974 and the HMC is charged with managing its funds which include pension assets, working capital and noncash gifts.