SMU Annual Report 2012-13
In 2012–13 SMU celebrated the third year of the University's centennial commemoration period. SMU's progress was marked by major strides forward in the key areas of student quality, faculty and academic excellence and the campus experience. A global audience watched as SMU celebrated the dedication of the George W. Bush Presidential Center. And thanks to the inspiring support of alumni, parents and friends for The Second Century Campaign, SMU continued to build a strong foundation for an extraordinary second century on the Hilltop.
FIN A NCI A L RE P O RT END O W MENT RE P O RT SMUâ€™s endowment ended the fiscal year on May 31, 2013, with a market value of $1.268 billion, representing an increase of $105.7 million compared to the market value on May 31, 2012. Endowment gifts totaled $36.2 million for the one-year period, while endowment distributions of $54.7 million provided substantial support to University operations and accounted for 16 percent of the operating revenue budget. This spending support funded many restricted and unrestricted purposes, including scholarships, faculty support, educational programs and libraries. We are pleased to report a total return of 11.3 percent for the one-year period ending May 31, 2013. Global equity and diversifying strategies performed well and contributed substantially to the increase in valuation. The environment for private investments was more challenging, particularly outside of the U.S., and the private portfolio generated lower returns. The beginning of 2013 experienced greater market stability and a somewhat more favorable environment for developed equities. Concerns about the sustainability of the current U.S. equity bull market, an increase in interest rates, and geopolitical events around the world contribute to an investment environment that is challenging and demanding. SMU benefits from the generosity of its donors â€“ past and present students, parents, faculty and staff, and friends of the University. We will continue to maintain a disciplined focus on investment strategies and opportunities designed to grow the portfolio over the long term, while achieving an appropriate level of risk and diversification. Meeting those goals will enable the endowment to support SMU into its second century. ENDOWMENT GROWTH AND TOTAL RETURN 1998â€“2013 35% $1,400,000,000 $1,200,000,000 25% $1,000,000,000 20% 15% $800,000,000 10% $600,000,000 5% $400,000,000 0% $200,000,000 $0 -5% 1998 1999 Strong market growth 2000 2001 2002 2003 Tech bubble burst; market retraction 2004 2005 2006 2007 Market recovery; global economic expansion 2008 2009 2010 2011 2012 2013 Mortgage/credit crisis; market volatility Market Value Total Return Percentage 42 | smu.edu/annualreport -24.2% 9% long-term goal for total return 30%