Endowment Performance Report FY18

ENDOWMENT REPORT x

JUNE 2018

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

URI ENDOWMENT PERFORMA In the words of our students:

Ian Kanterman ’18 “Your financial support means the world to me. Without you, URI and many students’ lives would be very different. I hope to one day return to URI and support students in the same way that you do.”

Kiah Marcotte ’19 “Thank you! There are really no other words that can express my gratitude for how much I appreciate the help in paying for college. I am forever grateful for the help when I needed it most.”

Figures included in this report are as of March 31, 2018, unless otherwise noted.

Find more endowment information at urifoundation.org/endowmentsupport.

T

he University of Rhode Island’s endowment is vital to the strength and competitiveness of the University. It plays a key role in supporting present students while securing the future of generations more. The prudent investment of the endowment is a top priority of the URI Foundation and its Board of Directors, along with securing increased levels of private support for the University.

Nearly half of all gifts to the University last year from alumni, parents, and friends were earmarked as endowed gifts. These gifts, each with a specified purpose, are invested based on a long-term strategy to build upon the original principal value. Each year, a percentage of earnings generated by the invested pool of funds is distributed to the University for use.

Market fluctuations and new gifts to the endowment may contribute to changes in the overall fund value.

The URI Foundation manages more than 1,100 individually named funds. They provide support for purposes ranging from scholarships and faculty retention to facility improvements and academic program enhancements. In May 2018, the Board of Directors voted to increase the level of funding distributed from the endowment to the University from 3.3 percent to 3.5 percent, which will result in even greater levels of support in the 2018–2019 academic year. The distribution value for your fund(s), listed in these pages, reflects that recent spending policy increase.

The endowment is truly the cornerstone of any university. Every college and program across URI benefits from funds generated by these long-term, invested gifts. We are pleased to share with you the performance of the University’s collective pool of funds (based on data as of March 31, 2018), as well as information related to your specific fund(s).

The generosity of URI’s contributors and the commitment of its endowment fund stewards are among our greatest assets. We thank you for your partnership.

ANCE AND ACTIVITY REPORT ANNUAL ENDOWMENT PAYOUT: The following graph represents the total amount of endowment-generated funds distributed to URI each fiscal year, based on the Foundation’s spending policy, for use over five academic years. $5.0 $4.0

3.7

3.4

3.7

3.8

4.2

$2.0

$4.2 MILLION

$1.0 $0

2015

2016

2017

2018

2019

The annual payout figure is based on a rolling 3-year average using 12/31 values.

PORTFOLIO VALUE: As of March 31, 2018, the University of Rhode Island’s endowment portfolio had a market value of $138.8 million. The market value for each of the past five years, on March 31, is represented below. $150

MILLION

value of endowment

IN MILLIONS

$3.0

$138.8

IN MILLIONS

139

$125 $100

112

109

106

119

$75

annual endowment payout for the 2018/2019 year

1,152 ENDOWED FUNDS

managed by the URI Foundation

855

ENDOWED FUNDS

$50

support scholarships

$25 $0

2014

2015

2016

2017

2018

ANNUALIZED RETURN ON INVESTMENT: The annualized return on URI’s general endowment portfolio, as of March 31, 2018, was 11.1 percent. The returns for the past five years are shown below.

2015

–6.2%

9.8% 3.1%

2018

awarded to students by the URI Foundation

OF URI STUDENTS

2016 2017

SCHOLARSHIPS

75%

INCREASE/DECREASE AS OF MARCH 31

2014

2,012

11.6% 11.1%

received some form of financial aid (federal, state, private)

ASSET ALLOCATION as of March 31, 2018

30.1%

3.3%

U.S. EQUITY

CASH & EQUIVALENTS

11.9% FIXED INCOME

6.9% REAL ASSETS

18.4%

1.5%

GLOBAL EX U.S. EQUITY

PRIVATE INVESTMENTS

11%

16.9%

EMERGING MARKETS EQUITY

MARKETABLE ALTERNATIVES

THE INVESTMENT OF URI’S ENDOWMENT URIF Spending Policy: The current endowment spending rate that will be applied for use in the 2018–2019 academic year is 5.05 percent, which contains both the University distribution and the Foundation management fee. For fiscal year 2019, the payout increases from 3.3 percent to 3.5 percent of the market value of the endowment (calculated on December 31, 2017). The management fee is 1.55 percent. The dollar value of the payout to the University to support gift purpose this year will increase from $3.79 million to $4.24 million.

Find a complete listing of endowed funds at 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 aquinlan@uri.edu.

A message from Deborah A. Imondi ’83 M.B.A.’86 Chair of the URI Foundation Investment Committee

I

am privileged to continue in my service as chair of the Investment Committee for the University of Rhode Island Foundation.

Volunteering my professional experience toward something I care so much about is truly rewarding.

Along with my Committee colleagues, I remain focused on the prudent oversight and management of the University’s invested portfolio.

The endowment has seen significant recent growth. A Chronicle of Higher Education report, showcased in Providence Business News this winter, had URI’s growth rate eclipsing both the national average and the performance of all other Rhode Island-based college and university endowments.

We are pleased with the portfolio’s performance and remain committed to continual strategic adjustments to our asset allocations and other factors to ensure the best possible results.

A healthy endowment is among a university’s greatest assets, and your role as a fund steward is something we value. Your partnership in URI’s success is appreciated, always.

With best regards,

79 UPPER COLLEGE ROAD, KINGSTON, RI 02881-2023 401.874.7900 | foundation@uri.edu | urifoundation.org

Deborah A. Imondi