2022 ENDOWMENT PROSPECTUS Children’s Medical Center Foundation Janice and Ernie honored the life of their withthroughdaughterdecadesofvolunteerserviceatChildren’sHealth℠andarenowrecognizedagenerousendowmentinsupportofChildLife. THE LEGACYFAMILYHOLMES
TABLE OF CONTENTS Holmes Family Endowment 2 Benefiting Child Life Price Family Endowment 6 Benefiting Clinical Research Adams Family Endowment 10 Benefiting Administrative Residency Program New Endowments 14 Investment Summary 22 Endowments at Work 24 Meet CIO Ken Lee 26 Committee & Staff 28
A t Children’s Health, our mission is a humble statement with a lot of impact — to make life better for children For more than 100 years, we’ve been building upon this legacy, providing exceptional care to the children and families we serve Every day, generous donors stand with us, helping to support this important work We’re extremely grateful to everyone who’s come alongside us to leave your own legacy through endowed funds That gratitude includes friends like the Adamses, Holmeses and Prices, whose stories are shared within these pages They’re making an impact now and for the health of future generations to come Their endowments create momentum for Children’s Health to continue meeting the medical, social and emotional needs of children through the highest quality care and groundbreaking discoveries I’m honored to share some of the ways endowments contribute to tackling a range of clinical, supportive, research and educational needs at Children’s Health It’s also exciting to showcase the strength of our investment activities, affirming the confidence and trust that generous donors place in us to manage these funds and honor their legacies Thank you for your continued support These endowed funds help ensure that reliable resources are available each year — creating a brighter, healthier future for every child we serve Kids count on us We count on you Brent E. Christopher President Children’s Medical Center Foundation
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ErnieJanicevolunteers,LongtimeandHolmes
In support of Children’sthe Health Child DepartmentLife FAMILYHOLMESENDOWMENT
The day before the end of 2021, Janice and Ernie Holmes made their final exit from Children’s Health through a tunnel of cheering team members, waving farewell signs and shiny red balloons After decades of service, the couple was retiring fromCombined,volunteeringtheduo amassed more than 26,000 hours of volunteer work at Children’s Medical Center Dallas A volunteer for 53 years, Janice visited the hospital several times a week She brought patients stuffed animals after surgeries She pushed stretchers and cleaned beds She sewed blankets for children and made banners for the chapel The daughter of a physician, Janice grew up around hospitals For her, these buildings filled with patients, their families, doctors and nurses weren’t scary places And when her 5-year-old daughter, Laurie, passed away from leukemia at Children’s Health in 1968, the hospital was where she turned for comfort, signing up a few months later to begin her decades-long volunteer run Years later, when Ernie retired from his professional career, Janice signed him up to volunteer alongside her “Starting with the worst experience in our lives, Children’s Health became a lifeline — a reason to keep going,” Janice wrote in her memoir
JANICE HOLMES Donors, Steven and Anne Holmes 3
The couple often shared stories of their volunteer work with others, inspiring friends and family to join them in volunteering at Children’s Health and to enter the medical profession In 2015, one of their sons and daughters-in-law, Steven and Anne Holmes, gave $250,000 to Children’s Health to establish the Janice and Ernie Holmes Endowment for Child Life in Memory of Laura Ellen Holmes “We miss Laurie every day She was a fun, 5-year-old kid who liked to go to the movies and happened to get sick,” said Steven, who was 9 years old when Laurie passed away “When making a gift to Children’s Health, we wanted to do something that was meaningful and would honor Laurie and my parents And because of the history my parents Children’s Health became a lifeline — a reason to keep going.
HOLMES FAMILY ENDOWMENT
Child Life helps alleviate the fear of the unknown that may accompany a hospitalization or diagnosis by providing coping strategies and education and normalizes the treatment process for children through procedural preparation, developmentally appropriate diagnosis education and therapeutic play Child Life specialists and assistants help to improve patient health outlook and outcomes and create long-term impact through fun and engaging programs and activities In 2021, Child Life teams launched “holiday stores” for the sixth year in a row at Children’s Medical Center Plano and for the first time at Children’s Medical Center Dallas Team members coordinated gift donations and provided parents the opportunity to “shop” for presents for patients and their siblings at no cost with the primary goal of providing parents with a sense of control, while allowing them to honor family traditions and I had at Children’s Health, the institution is particularly special to us,” said Steven, adding that their children — now adults — used to join Janice in wrapping presents for patient families for the holidays And several years ago, Anne was inspired to sign up to become a volunteer, too “Plus, the staff at Children’s Health are amazing, and it’s important to know that the people who work there care the way they do about the patients they treat,” Steven said The Holmeses’ generous gift provides funds for the Child Life department, an essential offering in the hospital that receives no external support aside from philanthropy Team members in the department — which include child life specialists, child life assistants and music therapists — work alongside medical staff to ensure a positive hospital experience for Children’s Health patients and families “Never did I think back in 1968 that Children’s Health would become such an important part of my life and the life of my family,” Janice said “I started here as a grieving mother and Children’s Health almost literally saved my life What a great feeling it is to have been a part of this wonderful, amazing place ” Scan the code to learn more about endowments and how to grow your gift.
CHILD LIFE
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Endowment funds supported an array of crucial child life offerings and services in 2021 that otherwise may not have been available to patients and families, including: HOLMES FAMILY ENDOWMENT 5 PLANO • With the need for Child Life services at an all-time high and expected to increase with the Plano campus expansion, Child Life doubled its team to six full time Child Life specialists in 2021 to be able to serve the entire Plano campus • The additional staff, made possible by philanthropy, resulted in a 66% increase in patient and family encounters from 2020 • Continued to increase technologybased offerings for patients and their siblings, including new Nintendo Switch™ devices, games and iPads, which helped patients prepare for procedures, and more engagement options for increased normalized play • Increased number of virtual events, like Christmas tree lighting, birthday parties for therapy dogs, Halloween costume party and more for patients and families to safely enjoy from their room DALLAS • Expanded to 24/7 Child Life coverage in the Emergency Department resulting in nearly 15,000 patient and family member encounters • Additional focus on providing normalizing play options, activities and crafts to behavioral health patients in the Emergency Department • The Child Life “Zone” celebrated its fifth birthday and safely had nearly 5,000 patients attend the playroom for activities, celebrations and events throughout the year • Provided monthly shadowing opportunities for medical students and residents • Led Texas Regional Child Life Workshop sessions for those interested in pursuing a career in Child Life • Our Child Life Technology Specialist successfully integrated virtual reality and utilized robot technology to enhance procedural support and increase patient education and engagement • With a continued focus on patient family and staff education, the Child Life team published a new sibling workbook and new diagnosis teaching booklet for families in the Gill Center for Cancer and Blood Disorders • Extended Child Life support in our MRI program, which led to a much higher success rate in reducing sedation
Harvey and Lanell Price make planned estate gift to support clinical research at Children’s Health
Harvey Price was 15 years old the first time he saw her — the only girl sitting in the back row of his homeroom class in 1955 at Waco High School “And I thought to myself, ‘That is somebody I want to get to know,’” he said of Lanell, who had moved to Waco that year to live with her aunt and uncle For three years, the pair were best friends, trading their sandwiches at lunchtime Harvey’s was always goose liver and onions And Lanell’s was always bologna and mayonnaise After high school, they went their separate ways They married other people and had their own childrenButsix decades later, after their spouses passed away, a high school reunion publication brought them together
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And when Harvey landed at the airport in Dallas, it was like no time had passed “I saw him coming through the gate, and he was just like the boy I remembered from high school,” Lanell said In 2013, the couple were married at the McLennan County Courthouse, less than half a mile from the old Waco High School where they met
“Anybody I’ve ever met in research has this gleam in their eyes because they know they’re touching the unknown, and that is exciting Research is the frontier of discovery, and we wanted to be able to support that through our funds,” Harvey said Growing up a couple of hours from Dallas, the couple were aware of the mission of Children’s Health to make life better for children in the North Texas We wanted to create something that would live on after us and help others. This gift makes us very proud. PRICE
HARVEY
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PRICE FAMILY ENDOWMENT
Now in their 80s and wanting to leave behind a lasting legacy, they established the Edith Lanell and Harvey L Price Jr Endowment Fund for Clinical Research through a planned estate gift to Children’s Health
After high school, Harvey pursued a career as a physical therapist and worked with pediatric patients Later, he went back to school to study pulmonary and respiratory care and did research studying sleep disorders His work brought him opportunities to study and train at Stanford University and to do research for the National Institutes of Health
community and beyond Lanell and her first husband also lived in the Dallas area and volunteered as Mr and Mrs Santa Claus for several years at Children’s Health in the “We1990shada real affection for Children’s Health and knew that the team there led incredible research,” Harvey said The couple’s generosity will support unrestricted clinical research, which helps fund the uncharted journey of scientists to discover breakthrough treatments and allows Children’s Health to be on the cutting-edge of pediatric Year-round,medicinethereare worthy clinical research projects at Children’s Health with the potential to change lives that require funds to move forward Philanthropic support for launching meritorious projects is crucial to fostering these initiatives and innovations “We wanted to create something that would live on after us and help others This gift makes us very proud,” Harvey said “We didn’t care about having our name engraved on a wall, but it does give us a sense that we were here, and that we made a difference ”
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Philanthropy has granted clinical researchers the opportunity to respond to urgent and unforeseen needs, such as performing critical research on viruses like COVID-19 and its current and long-term implications on the health of children. Follow the code to learn more about the role of research at Children’s Health and how you can make a lasting impact in this area.
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BELOW IS A LIST OF SOME AREAS OF CLINICAL RESEARCH THAT WERE LAUNCHED OR ADVANCED BY PHILANTHROPY IN 2021. • Targeting myeloid-derived suppressor cells (MDSCs) in pediatric tumors MDSCs are immature myeloid cells that have the ability to suppress immune responses and expand during cancer, infection and inflammatory diseases • Tumor sequencing for high-risk pediatric oncology patients • Anesthesia patient safety for pediatric COVID patients • Fetal congenital heart disease • Neonatal and pediatric ECMO monitoring • Sport-related concussion recovery in adolescents • Brain injury in extremely preterm infants • Exploring the cellular landscape in pediatric obesity • Evaluating and ininterventioncommunicationstrengtheningandpracticemethodsamongproviderspediatricambulatoryclinics
PRICE FAMILY ENDOWMENT ATRESEARCHCLINICALCHILDREN’SHEALTH
Clinical research puts theories and basic science research into action that can benefit patients at the bedside. Children’s Health is a leader in clinical research, and significant breakthroughs have been made at Children’s Health because of our ability to conduct this research.
Currently, there are more than 1,200 active research studies at Children’s Health, with nearly 13,000 patients enrolled For many of these children, it is their last hope at treatment for their illness, and philanthropic support remains the essential catalyst for facilitating new and innovative ideas for clinical research at Children’s Health
As a teenager, Carlie Cohen knew she wanted to work in health care Maybe she’d be a physician Or perhaps she’d be a psychologist In college, she landed on Child Life specialist — inspired by the experience of her favorite high school teacher’s daughter, Krisanna, as a pediatric cancer patient Through an internship as an undergraduate, Carlie learned about the health care administration profession and decided to pursue a master’s in health administration “I knew hospitals had a CEO, physicians and clinical staff, but I had never thought about the business and leadership roles that play a part in an individual hospital or health care system,” Carlie said In 2010, she landed a spot in the Children’s Health Administrative Residency Program, an educational opportunity that built a solid foundation for a more-than-a-decadelong career at Children’s Health Now, Carlie serves as vice president of outpatient operations, overseeing outpatient services as the “front door” to the health care system for patientCarliefamiliessaidthe residency program is an investment in future leaders, but it’s also a financial investment that relies on generous donor funding “From day one as a resident, I’ve had mentors and leaders who invested, believed and advocated for me to be a strong leader,” Carlie said “That speaks volumes to the mission of Children’s Health that they want to invest in and grow future leaders ” Earlier this year, Children’s Health announced a $1 million donation from John and Susie Adams to establish the John and Susie Adams Excellence Endowment in support of the Children’s Health IHealth,”DurovichtheandfriendProgramAdministrativeChristopherbeenhealthimpactcarethemanagementoperationalthetheirleadersoftrainingprovidesresidencyResidencyAdministrativeProgramThepost-graduateprogramadditionalanddevelopmentfuturehealthcaretostrengthenunderstandingofstructural,financial,andofcomplexhealthsystemanditsonpopulationscienceTheprogramhasrenamedtheJDurovichResidencyinhonoroftheAdamses’andChildren’sHealthpresidentchiefexecutiveofficer“VeryfeworganizationshaveinspiringleadershipthatChrisprovidestoChildren’ssaidJohnAdams“Susieandareverypleasedtorecognizethis by renaming the residency program after him We are fortunate to have Chris and Christina Durovich so focused on ensuring Children’s Health continues to provide the best quality care Our belief is the graduates of this endowed residency program will be better able to provide hospitals across the country with visionary leadership like Chris Children’s” Health has sponsored an administrative residency program since 2005 in partnership with several universities to provide practical, experiencein-depthinhealth care leadership for students pursuing Master of Business Administration and Master of Health Care Administration degrees The 11-month program — which connects residents with the president and CEO, as well as the CEO’s direct reports across various areas of the business — is recognized among these universities as highly desirable, rewarding and career-advancing Residents gain invaluable experience and develop leadership skills in areas such as quality improvement, strategy, human resources and the financing of health care MILLION THE CHRISTOPHER J. PROGRAM From day one, I’ve had mentors who advocatedbelievedinvested,andformetobeastrongleader.
CARLIE COHEN
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“Because of the residency program, I was given the skills and mentors that allowed me to grow with the system,” Carlie said “So as Children’s Health got more complex, and we were able to do more for more kids, I’ve been able to grow and influence the care that’s delivered to thousands of kids just like my high school teacher’s daughter, Krisanna, every day ”
John and Susie Adams have been longtime supporters and advocates of Children’s Health John has served on the board of directors of Children’s Medical Center Foundation since 2008 and previously served for many years on the board of directors for Children’s Health System of Texas and Children’s Medical Center Dallas, which he chaired “For more than two decades, John and Susie have given generously to support areas of need most important to Children’s Health,” said Brent Christopher, president of Children’s Medical Center Foundation “Their creation of an endowed fund for the administrative residency program is the first of its kind at Children’s Health and ensures we can continue to help mold future hospital leaders who are dedicated to making life better for children ”
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I am honored to accept the May Smith Scholarship for 2021! Thank you for your generosity and willingness to support my passion to become a Registered Nurse! This scholarship will give me the opportunity to earn skills that will not only serve Children’s Health but to serve the surrounding communities following my graduation in 2023 ” – Chasity Webb
Thank you so much… Your generosity will help me to achieve my dream of becoming a pediatric nurse Because of this scholarship some of the financial burden of nursing school is lifted, and I am able to focus more on my academics As I strive to be an outstanding student and then an exceptional nurse, I will forever remember how this program, and the awarded scholarship, has helped me along the way ” – Katelin Uzzell
ADAMS FAMILY ENDOWMENT
“It is a distinct privilege to have the opportunity to participate in the professional development of future leaders in our industry,” said Chris Durovich, president and CEO of Children’s Health “Susie and John’s investment celebrates and helps us fulfill the educational mission of Children’s Health; it advances our profession — today and for future generations We are grateful for their generosity, and I am humbled that they have named our program in my honor ”
Carlie said educational endowments such as this go a long way toward preparing future leaders with the skills to grow alongside an expanding hospital system that looks very different from when she started as a resident more than a decade ago
Thank you for selecting me to receive the honor of this scholarship I was brought to tears when I received the email letting me know I was selected for the May Smith Scholarship I am now given the opportunity to finish my education and obtain my BSN My family and I are beyond grateful and will continue to work together to ensure that your choice was not a mistake Thank you again! I can't wait to become a pediatric nurse!!” – Ariel Winchester
&SCHOLARSHIPSRESIDENCIES,LECTURESERIES
Investing in the education and development of dedicated team members and aspiring health care professionals and experts is an important aspect of Children’s Health. This supports our ability to attract and retain top talent, helps build the next generation of pediatric providers and enhances the care and clinical experiences for the young children we serve. Endowed support of these efforts provide significant resources through administrative residencies, scholarships and lecture series that directly impact the lives of nurses, doctors and allied health professionals who make life better for children.
MAY SMITH SCHOLARSHIP RECIPIENTS
The heritage of nursing is rich at Children’s Health, which traces its roots back to a clinic started by Nurse May Forster Smith This scholarship is named for Nurse Smith, who began an open-air clinic for infants in 1913 That pioneering spirit continues in the 21st century The May Smith Scholars Program provides financial assistance for baccalaureate students interested in pediatric nursing
Today my heart and spirit are filled with joy and gratitude This award means so much to me and the abundance in this gift will help to support me tremendously I am so very grateful to be working for such an amazing hospital that has provided this wonderful financial opportunity Working full-time and attending nursing school full-time has not been easy This scholarship not only helps me financially, but mentally and emotionally as well Thank you, thank you, thank you a thousand times!!!!!” – Bobby Martinez
Our capacity to utilize support from this fund has been incredibly valuable as we invite national experts to share their expertise in helping to educate our medical students, pediatric residents and clinical fellows At the same time, we can showcase our remarkable clinical and research programs in a way that can inspire new collaborations in patient care or research ” – Stephen X. Skapek, M.D, Division Director at Children’s Health Pauline Allen Gill Center for Cancer and Blood Disorders
JAMES FARNSWORTH SCHOLARSHIP
I feel extremely honored to have received this award and am grateful for the impact it will have on my education After all the work I have devoted to my education thus far, I am excited to finally be starting my Physician Assistant master’s program this summer These funds will help me pay for my education more easily, giving me great freedom and peace as I enter into this valuable field that will impact the lives of so many children and families ” – Jenna Inman
I simply cannot express how much this means to me! It’s an incredible honor to be supported by my community and this scholarship will go a long way in my efforts towards becoming a physician Children’s Health has made a significant impact on my education and goals and I can’t wait to give back in a few years to the same community that helped me along my journey Thank you so much!” – Sereena Jivraj
ADAMS FAMILY ENDOWMENT
The James J Farnsworth Health Career Scholarship offers educational support to students planning careers in pediatric health care The scholarship is named in honor of James J Farnsworth and was established from gifts to endowments made in tribute to Mr Farnsworth by his friends and colleagues Mr Farnsworth served as president of Children’s Medical Center Dallas for more than 30 years and was a fellow in the College of Healthcare Executives
Thank you so much for this scholarship I am currently pursuing my Master in Nursing Education I look forward to using the knowledge and skills I acquire to continue to promote Children’s mission of “making life better for children ” Thank you for this help in continuing to follow my dream of becoming a clinical nurse educator here at Children’s Health and for the impact it will help me have towards our patients ” – Janell Heygester
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GRACE LEE SCHOLARSHIP RECIPIENTS
The Grace Lee Scholarship for Clinical Education was established in honor of Grace Lee, a former patient at Children’s Health and in recognition of the exemplary care provided by clinical staff members who contributed to her comprehensive care This scholarship provides financial assistance for the continuing education of clinical employees who are direct caregivers at Children’s Health
WIPE OUT KIDS’ CANCER ENDOWED RESEARCH FUND
Grand Round series This endowed research fund is given in honor of Cindy Brinker in support of research into childhood cancer and other blood-related diseases and disorders
This endowed fund supports the Pediatric Hematology/Oncology Visiting Lecture series, in which national experts are invited to UT Southwestern and Children’s Health campuses as part of weekly Pediatric Hematology/Oncology
13 AWARD DOLLARS RECIPIENTS $65,000 $120,000 $172,500 $172,500 $189,000 2017 2018 2019 2020 2021 20 35 53 54 54 2017 2018 2019 2020 2021 46/8 NURSING/NON-NURSING $189,000 EDUCATION DOLLARS PROVIDED $3,500 AVERAGE AWARD 54 SCHOLARSHIPS Multi-racial/OtherHispanic/LatinoCaucasian African American Asian 23 15 6 5 5 56% EMPLOYEES 44% OTHER RECIPIENTS 93% WOMEN 7% MEN 33% GRADUATE STUDENTS 67% UNDERGRADUATESTUDENTS DEMOGRAPHICS 2021 SCHOLARSHIPS NUMBERS
Endowments are especially well suited for those areas that need a sustained source of annual income and one that can provide support for a project, program or other areas in perpetuity Invested for long-term growth and carefully managed to preserve capital, endowments provide a lasting legacy for donors and help secure the future for the fund’s designated purpose Here are the highlights of some endowments created in 2021
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Through the establishment of endowment funds, generous philanthropists like you ensure a reliable source of income will be available so that Children’s Health can continue meeting the medical, social and emotional needs of all the children served Endowment gifts are established to provide perpetual support for a program, research area or other need that is close to a donor’s heart Contributions made to establish endowments are invested to generate earnings and increase in value over time Each year, a distribution from the endowed fund is made, as determined by the spending policy adopted by the boards of Children’s Health, to support the designated purpose of the gift Over time, as the fair market value of the fund increases, so do its distributions
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There’s nothing that makes me more comfortable as a mom than knowing that I have access to an organization like this, and we wanted to help other young families during difficult times.
Aformer Children’s Health team member, Alissa Campbell understands the role social workers play in helping patient families navigate support and resources, as they cope with their child’s illness Now a young mother of two, Alissa and her husband, Kyle, created an endowment fund to support the Social Work team at Children’s Health Distributions from this endowment can be used for patient family psychosocial support “After working at Children’s Medical Center Foundation for several years, I know what an incredible organization this is, and I feel blessed to live in an area that has a health care system like Children’s Health,” Alissa said “There’s nothing that makes me more comfortable as a mom than knowing that I have access to an organization like this, and we wanted to help other young families during difficult times ” Social Workers aid during times of great stress, helping navigate complicated situations, coordinating families with referrals to community organizations and providers that can help them on their continued health journeys with their child, and providing resources for nonmedical expenses that can make a difference to patient families as their children bravely confront disease or injury These programs are not reimbursed by insurance and rely on philanthropic support to remain available to families in need
NEW ENDOWMENTS ESTABLISHED IN 2021
FORMER CHILDREN’S HEALTH TEAM MEMBER
FUNDCAMPBELLANDALISSAKYLE
ALISSA CAMPBELL
“Every gift that we make into this endowment can continue to grow and create more gifts in the future, hopefully long after Alissa and I are no longer here,” Kyle said “We wanted to give a little peace of mind to families who are going through these traumatic experiences and a little bit of relief, so they can focus on supporting their children on their journey to better health ”
C hildren’s Cancer Fund is honored to help fund Pet Therapy at the Pauline Allen Gill Center for Cancer and Blood Disorders at Children’s Health Like most supportive programs, Pet-Assisted Therapy promotes positive coping in an unfamiliar environment and situation Therapy animals can reduce anxiety and bring much-needed comfort to children enduring cancer treatment and difficult procedures The dogs also motivate patients to achieve mental and physical treatment milestones, such as taking a walk afterThesesurgeryfull-time, four-legged companions and their handlers from various departments like the Gill Center work with patients in their hospital rooms, ambulatory clinics and playrooms They are assigned to specific clinical areas and facilities so children can develop and maintain rapport with an individual animal Support services like pet therapy are offered without cost to patient families and are not eligible for insurance or government reimbursement Children’s Health relies on philanthropy to ensure these high-impact programs remain widely available for our young patients CHILDREN’SENDOWMENTTHERAPYPETCANCERFUND 16
It’s an honor to be part of the Women’s Auxiliary and a privilege to support the many patients and families served by Children’s Health. KRISTINAUXILIARY2020-2021MITCHELLWOMEN’SPRESIDENT
NEW ENDOWMENTS ESTABLISHED IN 2021 ENDOWMENT
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The Dallas Women’s Auxiliary Endowment for Children’s Health also provides an opportunity for new Auxiliary members to contribute to the endowment, deepening the impact of its members to invest in the future of Children’s Health and the children and families we serve
E stablished last year by the 2020-2021 Women’s Auxiliary Dallas chapter’s Gifts Committee, this fund provides perpetual support for the greatest needs and opportunities of Children’s Health For 60 years, the Women’s Auxiliary to Children’s Medical Center Dallas and its hundreds of dedicated members have supported a wide range of projects and programs and have witnessed firsthand the importance of having funds available to swiftly support promising and urgent initiatives This new endowment is a way to extend this legacy of caring for our community’s children for years to come by enabling operational leadership at Children’s Health to respond to the highest priorities
DALLAS WOMEN’S AUXILIARY FOR CHILDREN’S HEALTH
“It’s an honor to be part of the Women’s Auxiliary and a privilege to support the many patients and families served by Children’s Health,” said Kristin Mitchell, 2020-2021 Women’s Auxiliary President “Being able to provide crucial funds to address new opportunities and challenges now and in the future is important to us as we help carry the mission to make life better for children for generations to come ”
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JOHN ISNER PROFESSIONAL TENNIS PLAYER
FOUNDATIONFAMILYISNERENDOWMENTFOR
FAMILYINDIGENTCARE Pro tennis player John Isner and his wife, Madison, started their young family in Dallas and made North Texas their home The couple is grateful for the health of their children but recognizes the financial burden this can have for families who don’t have sufficient resources In 2021, the Isner Family Foundation created an endowed fund to support Indigent Family Assistance managed through the Social Work Department at Children’s Health Distributions from the endowment may be used to provide financial support for qualified families to obtain necessities, such as meals, clothing, stressfulfamiliesthisChildren’schildrenandconvenienttransportation,lodging,carseatsmedicalsupplies,whiletheirareunderthecareofHealthThehopeforendowmentistosupportinneedduringaverytime “We live a few miles from Children’s Health We want to make our community a better place and show our young children what it means to be charitable and help people in different situations,” John said “Endowed funds are permanent, creating a steady stream of income each year, in perpetuity, that will give generations of Isners a philanthropic legacy they can honor for years to come ” We live a few miles from Children’s Health. We want to make our community a better place and show our young children what it means to be charitable and help people in different situations.
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Leslie said “My dad participated in multiple clinical trials with the sole purpose of helping others I want to keep my dad’s legacy alive by looking for treatments that will save lives, give patients an enjoyable quality of life and remind them they are healthy with ‘just a little bit of cancer ’”
NEW ENDOWMENTS ESTABLISHED IN 2021
“My dad’s greatest superpower was the power of adaptability You could put him into any situation, and he’d immediately be comfortable and make others around him comfortable When he was diagnosed with lymphoma, it was a shock to all of us, but Dad took it in stride, always reminding us that he was ‘pretty healthy with just a little bit of cancer,’”
LESLIE STANDLEE CHILDREN’S CANCER FUND BOARD MEMBER Scan the code to learn more growandendowmentsabouthowtoyourgift.
This fund was established by Leslie Standlee, a Children’s Cancer Fund board member, in memory of her father, Jerry Standlee, who recently passed away from COVID-19 while continuing to fight lymphoma Funds from this endowment support immunology research related to pediatric cancer and blood disorders Distributions from this endowment can be used for costs associated with advancing this type of research
I want to keep my dad’s legacy alive by looking for treatments that will save lives, give patients an enjoyable quality of life and remind them they are healthy with ‘just a little bit of cancer.’
MEMORIALSTANDLEEJERRYFUND
“We want to help spare other families the pain of losing a child and increase the options for bone marrow failure,” Libby said “Bone marrow transplants aren’t an option for everyone and advanced research into this area will help save lives ” Steve Maus said the endowment creates a legacy fund, which others can contribute to, that will continue to advance their cause to help patients with bone marrow failure and their“Anfamiliesendowment provides long-term, sustaining support that will continue to help provide funds to advance research and care long after we are here,” he said We want to help spare other families the pain of losing a child and increase the options for bone marrow failure. LIBBY MAUS
Libby Maus was 12 years old when her older sister, Patricia, passed away from aplastic anemia — a form of bone marrow failure — in 1963 At the time, bone marrow transplants were experimental, and doctors didn’t recommend the procedure to the family Since then, Libby has spent the last six decades wishing she could have helped save her sister’s life The Maus Family Endowed Fund, established by Libby and Steve Maus, supports research, treatment and clinical care of patients with bone marrow failure, such as those with aplastic anemia, and their families at Children’s Health
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Myra passed away in November 2019, just three weeks shy of her second birthday, sleeping in the arms of her loving mother Myra’s family hopes to celebrate her life and the love she gave by building a legacy to fund advanced research at Children’s Health to find a cure for infant leukemia “We never felt alone,” Leigh said “The doctors were on top of everything For having such a horrible diagnosis and having such a horrible outcome, the fact that they gave us an extra 14 months after that first weekend where things looked so bleak, we are nothing but grateful ”
NEW ENDOWMENTS ESTABLISHED IN 2021 ENDOWMENT SUPPORTED BY CANCERCHILDREN’SFUND 21
yra was 8 months old, full of joy and eager to explore as she entered the crawling and wobbling stage of life But her mom noticed that as she scooted and bumped into the world around her, she developed bruises that didn’t go away In August 2018, she was diagnosed with infant leukemia, and her family turned to the clinical team at Children’s Health to care for their baby girl Doctors told her mom, Leigh, that Myra had about a 5050 chance to beat her mixed phenotype acute leukemia, a very rare type of leukemia And in that moment, Leigh realized her baby girl was very sick Myra tolerated her treatments well and the cancer went into remission But after seven weeks of being home, Leigh noticed some changes that worried her — a constant runny nose and a swollen eye among them A quick trip to the doctor confirmed the family’s worst fear: The cancer was back But this time, it was back in a different way, which made the disease more difficult to treat Leigh and her husband, Kenneth, enrolled Myra in a groundbreaking treatment trial for a few weeks, but it wasn’t successful
THE MISSION OF CHILDREN’S HEALTH
Children’s Health’s philanthropic and reserve assets are stewarded by Children’s Medical Center Foundation. Assets are invested in a diversified portfolio, which is constructed to maintain purchasing power net of spending in the long term, while supporting the organization’s near-term needs.
The size of the Foundation’s investment portfolio, at approximately $2 billion, offers a wide array of opportunities for active investment management, giving us the opportunity to partner with talented external fund managers to identify profitable investment opportunities greater than what the broader stock and bond market can provide Active management goes hand in hand with diversification across investment mandates, investing styles, geographies and asset classes
The Investment Office at Children’s Health manages the financial assets of the health care system, which includes board-designated reserves in the form of a quasi-endowment, as well as donor funds entrusted to Children’s Health in perpetuity
PHILOSOPHY
HORIZONLONGTIME MANAGEMENTACTIVE RISKOFAWARENESSDIVERSIFICATION
FROM THE INVESTMENT OFFICE 22
These assets share a longtime horizon aligned with the century of service we have already provided, and the community benefits we seek to provide in the next 100 years
No single investment strategy shines in every market environment Buying on weakness and selling on strength gives the Investment Office the opportunity to add value by reallocating funds The combination of active management and diversification allows us to strive for superior investment results over the long term Active management also requires a keen awareness of risk Importantly, we seek to balance the long-term risk that inflation erodes our purchasing power with short- to medium-term movements in capital markets that are constantly changing and outside the control of any one individual It is imperative to understand and evaluate risks before attempting to manage them, including a cleareyed assessment of forward-looking estimates of risk and return potential
The four pillars of our investment approach — our long-term horizon, active management, diversification and awareness of risk — are meant to uplift the mission of Children’s Health For the Investment Office and its immediate governing stakeholders, our first duty of care is as fiduciaries for the financial interests of the hospital system and its mission, including its ability to serve future generations
INVESTMENT
ONE-YEAR PERFORMANCE
During the 2021 fiscal year, the Foundation’s investment portfolio grew by $266 3 million, from a starting value of $1 91 billion on December 31, 2020 Assets under management ended at $2 17 billion on December 31, 2021, after $20 3 million in charitable payout during the year The portfolio’s capital appreciation equates to a 13 9% return for the fiscal year, compared to a 12 2% return for the Foundation’s policy benchmark The Investment Office, in close collaboration with management and the Investment Committee, added 1 8%, or $33 6 million, in incremental value during 2021 through a combination of manager selection — how an investment in the portfolio performed relative to its benchmark — and asset allocation — the process of deciding where to put money in the market, balancing risk and reward The Foundation’s financial performance in 2021 was particularly strong because both manager selection and asset allocation contributed positively to profit With the capital markets constantly in flux, it is unrealistic to expect linear progress in both asset allocation and manager selection year after year It is likely that the extraordinary market conditions of 2020 and 2021 pulled forward future returns, making careful investment management more important going forward Last year was also the first full year when an in-house team managed the investment portfolio The Investment Office added $31 5 million in value net of its own overhead costs
THREE-YEAR PERFORMANCE For the three-year period ending December 31, 2021, the Foundation portfolio returned 13 7% per annum, outperforming the policy index’s 13 1% return by 0 6% per annum
The result is notable because Children’s Health underwent a leadership transition in the Investment Office during this time Prior to the arrival of new staff, the subsequent introduction of new governance, and the ratification of a strategic plan for the portfolio, the Investment Office was in a state of flux that made it difficult to achieve a well-coordinated top-down strategy Because of this, asset allocation detracted value over the three-year period Yet at a microeconomic level, thanks to the indefatigable efforts of volunteers, individual investment line items performed well compared to their strategy-specific benchmarks, with manager selection contributing more than 100% of the net value add over the three-year period This outcome is a testament to the extraordinary efforts of Children’s Health management and the Investment Committee
Positive value-add over this specific three-year period is impressive given that it includes one of the most challenging times in markets, when the start of the COVID-19 pandemic wreaked havoc on equities and other risk assets
The importance and the immediacy of our mission in the community today leads us to demanding financial objectives Increased payout requirements have arrived at a time when the market cycle is advancing, unfamiliar risks are emerging, and high valuations remain in many areas of the capital markets The Investment Office sees these challenges as a source of inspiration We invite our partners, stakeholders and friends to help us grow and to grow with us as we continue to strive to make life better for children – Ken Lee, Children’s Health Chief Investment Officer YEAR THREE YEARS FIVE YEARS Fund 13.91 13.68 9.49 Benchmark 12.16 13.11 9.33
CONCLUDING THOUGHTS After more than a century of service, now is the time to ensure we’re ready to meet the unique and wide-ranging needs of generations to come As we envision the next chapter of Children’s Health, it is important to ensure the Foundation’s financial assets work even harder, in alignment with the long-term mission of the hospital system
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average of the ending fair market values of the fund Because the endowment pool performance fluctuates from year to year, the use of a 12-quarter rolling average helps to stabilize the support these funds provide to programs The 5% distribution rate is reviewed annually in order to protect the corpus of the endowments and to ensure the funds continue to provide sustainable, reliable support for the donors’ designated purposes Endowment distribution policies comply with the Texas Uniform Prudent Management of Institutional Funds Act, as amended Distributions from each endowed fund are made to corresponding restricted accounts that ensure distributions are used in alignment with each endowment’s intended purpose at Children’s Health ENDOWMENT DISTRIBUTION POLICY RETURNS OF THE TOTAL FUND AS OF 12/31/2021 ACTUAL TARGETBENCHMARKPOLICY Global Equities 54.0 51.0 Developed Markets 37.4 36.0 Emerging Markets 8.6 10.0 Private Equity 8.0 5.0 Diversifying Strategies 24.1 25.0 Hedged Equity 10.1 10.0 Event Driven & Credit 7.6 8.0 Opportunistic 6.5 7.0 Real Assets 7.8 9.0 Liquid Real Assets 4.8 6.0 Private Real Estate 0.7 2.0 Private Natural Resources 2.3 1.0 Cash & Fixed Income 14.0 15.0 Investment Grade Credit 6.8 5.0 U.S. Treasury Bonds 1.2 5.0 Cash 6.1 5.0 TOTAL FUND 100.0 100.0 ASSET ALLOCATION AS OF 12/31/2021 23
The current annual spending policy for endowments at Children’s Medical Center Foundation specifies a 5% distribution of a rolling 12-quarter
ENDOWMENTS AT CHILDREN’S MEDICAL CENTER FOUNDATION More than 200 named endowments funded by donors are housed by Children’s Medical Center Foundation A range of clinical, non-clinical, research, training and community-facing areas benefit from these funds’ annual distributions, which help sustain important programs and spur new developments at Children’s Health Examples include clinical research, mental health, Family Support Services such as child life and team member development and education Additionally, a large portion of our endowments do not have a specific designation but are instead unrestricted for the general charitable purposes of Children’s Health These funds provide the greatest flexibility to invest in short- and long-term solutions and to explore new avenues of pediatric care The incredible benefit of these more general resources was evident over this past year Our ability to make life better for children is furthered by these permanent funds that provide continued support, while extending the legacies of the generous friends and partners who established these endowed funds or were honored by them
25 ENDOWMENTS AT WORK 25% 3% 9% 3%9% 6% 41% 4% As of 12/31/2021 Clinical Programs Named OutreachEducationPositions Patient Family Support Services Uncompensated CareUnrestrictedResearch AREA OF SUPPORT
OUT TO
Ken holds a Bachelor of Arts from Yale University and a MBA from The Wharton School of the University of Pennsylvania
n the fall of 2020, Ken Lee drove from New York to Dallas with his two Cavalier King Charles spaniels — Quincy and Oscar — in the backseat of his car to begin work as the new chief investment officer at Children’s Health, where he oversees a $2 0 billion portfolio of endowment and other assets
There’s a line a few people told me as I was getting to know the organization: “Adult hospitals save lives, but children’s hospitals save lifetimes ” That really resonated with me There’s so much ahead for kids, and that multiplies the impact any individual acts of generosity can have ”
WHAT
CHIEF INVESTMENT OFFICER AT CHILDREN’S HEALTH STOOD YOU ABOUT THE OPPORTUNITY TO LEAD INVESTING AT CHILDREN’S HEALTH?I
Previously, Ken was a managing director for almost a decade at Carnegie Corporation of New York — which was established by Andrew Carnegie in 1911 and is one of the oldest and most influential of American grantmaking foundations focused on world peace and the advancement of education opportunities While at Carnegie, Ken was drawn to endowment work and serving a mission-driven organization But his interest in endowments began as a student at Yale University in the late 1990s, when he took an investing seminar taught by David Swensen — former head of the Yale endowment fund and who reshaped the investing world “The class was a way to learn about the inner workings of the investment office and how investments work But more importantly, David taught us about the ethos of investing,” Ken said “It’s a privilege to be able to serve one of these missions We should all be so lucky to do that in our work It’s the best job in the world ”
While at Carnegie, I was looking for the next step in my career where I could run my own team and put my stamp on something The opportunity at Children’s Health came along and was a great fit Since 2006, I’d been covering Dallas and the Texas investment community in my investing work The community was always so welcoming There is an entrepreneurial spirit here and a Texas-sized risk appetite But the other part of this job being a great fit was having a mission that resonates, and the mission of Children’s Health to make life better for children is hard to argue with
26 MEET KEN LEE
Children’s Health is at a strategic inflection point There’s so much change and growth happening in North Texas, and there’s an opportunity here to build something ambitious, which is super exciting Unlike many other cities in the United States, North Texas is one of the few places with net population growth due to net migration and demographic trends Because of that, we’ve embarked on projects like the expansion of Children’s Medical Center Plano to meet the needs of the community north of Dallas Those kinds of capital projects and building of programs immediately connect to my work in the investment office ”
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Children’s Health has an incredible mission story and has a huge opportunity at this juncture to serve our growing community The way I define success is to build the highest quality investment organization that generates the best possible risk adjusted returns These returns allow Children’s Health to fulfill its mission and pursue ambitious initiatives like enhancing our campuses, discovering breakthrough treatments and creating a firstof-its-kind pediatric mental health initiative ”
WHAT ROLE DOES THE INVESTMENT OFFICE PLAY IN MOVING FORWARD THE MISSION OF CHILDREN’S HEALTH?
NOW THAT YOU’VE ARRIVED AT CHILDREN’S HEALTH, WHAT EXCITES YOU ABOUT THE JOB AND GETS YOU UP IN THE MORNING?
28 Chair: Debra Brennan Tagg President, BFS Advisory Group David Kelly Chairman and CEO, Croesus and Company Tom Montgomery Managing Member, Montgomery Capital Advisers Dotti Reeder Managing Director, Tolleson Wealth Management Michael Silverman Co-President & Chief Investment Officer, CH Investment Partners 2022 INVESTMENT COMMITTEE Ken Lee Chief Investment Officer Chris Andry Director of Investment Operations Yangge Seaman Director of Investments Kyle Stewart Director of Investments 2022 INVESTMENT STAFF
For questions regarding current endowments or interest in establishing a new endowment, please contact: Nicola Lawrence Director of Legacy and Gift Planning Nicola Lawrence@childrens com 214 456 Children’s8360Medical Center Foundation 2777 N Stemmons Fwy Suite 1700 Dallas, Texas 75207
