2015 uri foundation endowment report
DESCRIPTION
Report in the investment performance and impact of the University of Rhode Island endowment.TRANSCRIPT
your investment in the university of rhode island’s future
this report was prepared by the uri foundation to provide an overview of the investment
performance and impact of uri’s endowment.
endowment report june 2015
The URI Foundation, on behalf of the University of Rhode Island,
secures and encourages charitable giving to the
University, including those gifts from our alumni,
parents, corporations and foundations, and friends
that are intended as endowment gifts. These gifts,
which are invested as part of the University’s overall
endowment, help ensure a legacy of support for
URI students, faculty, and programs in perpetuity.
This report has been prepared primarily to share
investment performance information related to the
University’s overall endowment portfolio. Our donors
and fund stewards are our partners in progress and
we are pleased to share this report with them.
The primary objective of the endowment is to support the long-term needs of the University
by maintaining a strong and healthy endowment and
by growing the inflation-adjusted value of the assets
over time by investing a portion of the endowment’s
earning and appreciation back into the fund each year.
This principal growth is intended to help offset the
negative implications of rising inflation and dips in the
business cycle over time. The University’s endowment
provides long-term stability and support and helps offset
variations in state appropriations supporting URI.
Gifts to URI by Typen endowment: 42.6%n direct/expendable: 57.4%
1,075 795 17endowed funds
endowed scholarships
new funds created in fy2014
as of 12/31/14
URI’s Endowment Value in Millions:
State Support of URI’s Overall Budget
1999 23% E 2015 8%
$$$$$$$$$$$$$$$$$$$$$$$ E$$$$$$$$$114.3
Endowed Funds by General Purpose based on total number of funds
74.5% scholarships 20.4% academic/program support 2.6% other 1.5% chairs and professorships 1.0% buildings and equipment
Annual Endowment PayoutThe following graph represents the total amount of
endowment-generated funds distributed to URI each
year, based on the Foundation’s spending policy,
for use over the five-year period shown.
$4.0
$3.0
$2.0
$1.0
$02012 2013 2014 2015 2016
3.02.7 2.9
in millions
3.4 3.7
the endowment by the numbers…
Asset Allocation
25.9% Us Equity 24.5% Marketable Alternatives 14% Global ex-Us Equity 14.9% Deflation Hedging 10.1% Emerging Markets
Equity 8.6% Inflation Hedging 1.8% Cash and Equivalent 0.2% Private Investment
december 2014
Annual Distribution of Earnings: The payout from the
investment of the endowment portfolio to the University varies
each year, based on both endowment value and the spending
policy, adopted by the URI Foundation Executive Board, for
that given year. For use in the upcoming academic year,
2015/2016, $3.7 million will be distributed to support donor
specified purposes, including undergraduate and graduate
student support; faculty support and professorships; program
support, including those relating to experiential learning
opportunities; and, vital capital project support.
Named Endowment Fund Opportunties: Endowments are a meaningful way
to create a permanent legacy and to ensure that your long-
term philanthropic goals will be fulfilled. A new fund can
be established and named with a $25,000 gift and will pay
out to support its designated purpose once fully funded
(typically required within 5 years). Donors may also choose
to support an already-existing endowment that aligns with
their goals and wishes with no minimum gift requirements.
Development professionals at the URI Foundation are
available to help determine the best choice for you.
34.5% alumni 32.3% corporations/
foundations21.4% friends11.8% other
Who Gave to the University
A A A A A A A A A A A A A A A A A A A AA A A A A A A A A A A A A A A A A A A AA A A A A A A A A A A A A A A A A A A AA A A A A A A A A A A A A A A A A A A AA A A A A A A A A A A A A A A A A A A A
URI Students Receiving Financial Aid: 75%
The University endowment is made up of a pool of over 1,000 individual endowment funds, each established
through the generosity of donors. Each fund is
established with a donor-specified purpose at the
time it is created, and each has been prudently
invested in order to preserve its principal value
over time, while generating earnings used to
make a meaningful impact for this and future
generations of students. The portion of funds
generated from the investment of the entire
pool of endowed funds and contributed to the
University each year is a very important piece
of the overall impact of charitable giving at URI.
Last year (FY 2014), a combined $11.5 million
in endowment earnings and expendable gifts
(non-endowed gifts received) was made available
to support the students, faculty and programs
at URI. Additional gifts of $6 million directed to
further enhance the University’s endowment,
were also raised in FY 2014.
alumni, friends and parents supported uri
last year with gifts, including those supporting the endowment
12,290
The Investment of URI’s EndowmentPerformance: The portfolio’s performance is calculated on a total return basis, which, for purposes of this report, represents the combination of income, dividends, and gains and losses for the time period reported, net of investment management fees and distributions. The value of the portfolio, which includes all individual endowed funds, was $114.3 million as of December 31, 2014.
URIF Spending Policy: The URI Foundation Executive Board voted to increase the spending rate for the academic year to 4.8 percent — up from 4.7 percent last year. This rate contains both the University distribution and the Foundation’s management fee. For the upcoming year, the distribution to the University will equal 3.5 percent of the rolling prior twelve-quarter average market value on the designated calculation date (December 31), up from 3.4 percent last year, and 3.1 the prior year. The management fee has been set at 1.3 percent, matching last year’s rate, which had been lowered from the prior year’s 1.4 percent, as the Executive Board moves toward a more impact-centric balance in the breakdown of the overall spending rate.
As is customary with many universities across the country, a one-time gift fee is deducted from all donations to provide essential support to the University’s overall development activities.urifoundation.org
A complete listing of endowed funds can be found on the URI Foundation website at www.urifoundation.org/endowmentfunds.
If you have any questions about your fund or the endowment in general, please contact Adam Quinlan,
Chief Financial Officer, at 401.874.4490 or [email protected].
79 upper college road, kingston, ri 02881 (401) 874-7900 | [email protected]
ConclusionThe benefits of endowment gifts are felt far and wide
across our campuses, with every dollar helping to
support the things that distinguish URI from its peers:
its students, faculty and programs. These investments
help shape URI’s character and its future, while
contributing to its competitiveness on the local, state,
national and international levels. The generosity of the
University of Rhode Island’s many endowment donors
is deeply appreciated. On behalf of the entire university
community, we extend to those donors, our heartfelt
and most sincere thanks.
Annualized Return on InvestmentThe annualized return on the University’s endowment
portfolio, as of June 30, 2014, was 14.9%. The annualized
returns for the past five years, using the June 30 point-
in-time date for comparison, are as shown below.
13.7%
22.1%
11.3%
14.9%
-3.3%
2010
2011
2013
2014
2012
increase/decrease as of june 30