FISCAL YEAR 2025
ENDOWMENT FINANCIAL REPORT
A MESSAGE FROM THE INTERIM VICE PRESIDENT Dear Friends, As we look toward the closing chapter of the Clearly Furman campaign, we are filled with deep gratitude for your unwavering support and belief in Furman’s mission. Because of you, this historic effort has already surpassed the increased goal of $476 million in commitments and now stands at $480 million, an extraordinary milestone that continues to elevate our University in profound and lasting ways. Thanks to the generosity of donors like you, the campaign has expanded access to a Furman education through new scholarships and has enriched the student experience in ways that are truly unparalleled. With the campaign concluding on June 30, 2026, we now have a remarkable opportunity before us to surpass $500 million in commitments. With your continued support and advocacy, we are confident we will achieve this ambitious goal. As we approach the finish line, our focus turns to our most critical priority, building scholarship endowment. This essential work will help make a Furman education more affordable and accessible for generations of students to come. Your investment is helping to shape a university that is stronger and more vibrant than ever. Furman continues to be recognized nationally for excellence in the liberal arts, ranked #45 among national liberal arts colleges by U.S. News & World Report. We are also proud to be ranked #11 Most Innovative School, #18 for First-Year Experience, and #21 for Undergraduate Teaching, reflecting the deep impact of our commitment to innovation, student success, and academic excellence. Additionally, Furman was recently identified as a “Dream School” in Jeff Selingo’s widely acclaimed book on college admissions, further affirmation that our national reputation and unique educational model continue to inspire students and families across the country. We would be honored to welcome you back to campus in 2026 as we celebrate Furman’s bicentennial, a once -in-a-lifetime milestone and a time to commemorate the incredible impact of the Clearly Furman campaign. Two noteworthy events that we hope you will plan to attend, Spring Weekend April 16-18, 2026 features the Rinker Paladin Pitch Competition, Furman Engaged and the Bell Tower Ball. The Bicentennial and Homecoming celebration will take place October 22-25, 2026. Mark your calendar and join us in celebrating 200 years of excellence, opportunity, and community. Thank you for being a vital part of Furman’s journey. Your generosity is shaping the future and changing lives. U With gratitude,
Shon R. Herrick Interim Vice President for Development
2
“Receiving this scholarship has been truly a life changing experience for me. I am the first person on both sides of my family to attend college so, this is a huge opportunity to not only make myself proud of how far I have come but also my loved ones. I feel more confident and driven to succeed now that I know someone cared enough about me to fund my education. I'm incredibly grateful for this gift and determined to take full use of this amazing chance.” EVELINA ’27, BOILING SPRINGS, SC
“I have so much gratitude for the investment my donors have put into my education, and the belief they put into me, someone they don't even know, to make the most of my education. I feel incredibly supported from this gift, and it has lifted a lot of financial burdens off of my chest. Without the anxiety of how I am going to support myself, I can make the most of my education and immerse myself fully in the college experience. ” SOPHIA ’28, KENNER, LA
3
ENDOWMENT OVERVIEW ENDOWMENT VALUATION
T
he Furman University endowment provides a significant source of revenue which supports the operations and programs of the university. As of June 30, 2025, Furman’s total endowment was valued at $886 million, of which $686 million was invested in the endowment pool (the portion under the decision-making authority of the university).
The remainder of the endowment is separately invested or managed by other entities, e.g. The Hollingsworth Funds. During the 2024-25 fiscal year, approximately $36.9 million was distributed from the total endowment. The endowment distribution contributed approximately 21.3% to the University’s annual budget.
$839M
Value on 7/1/2016
$631,397,402
Net Investment Return
$465,635,733
Distributions
(339,131,022)
Gifts
127,632,375
VALUE AT 6/30/2025
$800M
$661M
$703M
$694M
$670M
FY18
FY19
FY20
$812M
$787M
$828M
$886M
$610M $600M
$885,534,488 $400M
$200M POOL HELD BY OTHERS AND SEPARATELY INVESTED
FY16
$11,835,206 NEW ENDOWMENT GIFTS during FY25
$36.9M TOTAL DISTRIBUTION during FY25
4
FY17
FY21
FY22
FY23
FY24
FY25
ENDOWMENT DISTRIBUTION
48.1% Scholarships 19.3% Departmental, library, programs, other 11.5% Facilities operation, maintenance, improvement 10.7% Professorships 10.4% Unrestricted budget support
MANAGEMENT AND ASSET ALLOCATION
T
he Furman University Investment Office is charged with managing asset allocation, implementing specific investment strategies, and selecting and subsequently monitoring external money managers. The office collaborates with the Furman University Board of Trustees’ Investment Committee, senior Finance staff and external consultants to: a) preserve and enhance the inflation-adjusted purchasing power of the endowment, and b) support the current and future operations of Furman. The university has adopted an investment strategy that emphasizes strong, risk-adjusted returns over full market
cycles, so that the distributions are made regardless of the market environment. To achieve this goal, investments are diversified across a broad variety of asset classes, a strategy that, historically, has been shown to mitigate risk while enhancing portfolio performance. The Investment Office and external partners are focused on the responsible stewardship and investment of philanthropic gifts. The endowment’s purchasing power is supported by rigorous selection, monitoring and review of investments, which aims to ensure that each gift invested in the endowment may continue to transform the University for years to come.
ASSET ALLOCATION
23.2% Private equity/venture
8.0% Real assets/natural resources
22.1% U.S. equities
5.3% Fixed income
21.8% International equities
1.9% Cash
17.7% Hedged strategies
5
SOURCES OF INCOME
T
otal distributions from the endowment and other university investments comprise approximately 25.1% of the university’s annual budget. Approximately 56.7% is generated from tuition, room, board, student fees and other auxiliaries. Not only do endowed funds enhance the Furman experience for current and future students, but they also enable the university to reduce the pace of potential tuition increases.
SOURCES OF INCOME
56.7% Tuition and fees 25.1% Distributions of Endowment 11.5% Gifts and Grants 6.7% Other
PERFORMANCE
F
iscal Year 2025 saw generally strong performance, with diversified portfolios posting double-digit gains. While investors benefited from concentrated leadership in equity markets in FY 2024, numerous crosscurrents emerged in FY 2025, forcing investors to navigate a complex and uncertain landscape. The S&P 500 started the year strong, with investor sentiment soaring after the U.S. election in November, fueled by optimism around a Republican administration expected to implement pro-market policies. However, equity markets declined in four of the next five months as sentiment waned and concerns over trade policy escalated. The President’s April 2nd tariff announcement, branded “Liberation Day,” surprised markets, and the S&P 500 declined 12% over the following four days. Sentiment shifted quickly on April 9th when the administration announced a softer approach to tariffs, resulting in a 9.5% one-day gain for the S&P 500. The momentum continued in May and June, with the index reaching all-time highs. In addition to tariffs, markets had to contend with a new immigration policy, both of which are expected to exert inflationary pressures. Furthermore, economic data continued to show strength despite weaknesses in survey results, preventing the Federal Reserve from further rate reductions to align with market expectations. Geopolitical risks intensified, and concerns about U.S. debt sustainability grew, culminating in a Moody’s downgrade of U.S. government debt. All of these factors raised questions about the potential end of U.S. exceptionalism as economies decouple from globalization in favor of greater competition.
6
In U.S. equities, the AI theme continued to drive performance, particularly in megacap technology stocks; however, dispersion increased. Mega-cap tech outperformed both value stocks and small caps, with growth surpassing value. International equities outperformed U.S. equities for the first time since fiscal year 2017. Despite a weak outlook entering CY 2025, non-U.S. equities showed resilience, especially in Europe, buoyed by prospects for increased defense and infrastructure spending combined with fiscal support. Gains in emerging markets were led by China's recovery. Additionally, non-U.S. equities benefited from a weakening U.S. dollar, which was pressured by tariffs, inflation fears, and rising government debt. In fixed income, interest rates were cut by 100 basis points in the first half of FY 2025. Markets anticipated additional rate cuts in the second half; however, the Fed adopted a cautious stance amid signs of stagflation. As a result, the yield curve steepened significantly in FY 2025, with longerterm rates declining more modestly than 2-year rates. The 30-year yields increased, reflecting concerns about the deficit impact of the proposed “One Big Beautiful Bill.” The best-performing segment was Treasuries maturing over the next 5–10 years. Credit 3 years markets benefited from falling yields and tighter credit spreads. In alternatives, hedge funds, particularly long-biased, event-driven, and long/ short equity strategies — benefited from rallies in equity and credit markets. Private equity started
the year strong, but macroeconomic volatility dampened deal activity and exit opportunities. Venture capital posted positive returns after several negative years, with growth equity emerging as the top performer. Extended hold periods have become a structural challenge within private equity. Real assets delivered positive results, driven by gold and infrastructure investments. Conversely, oil experienced a significant decline as OPEC reduced production cuts, supply remained elevated, and concerns over global growth weighed on demand. In real estate, office and multi-family properties continued to face pressures. Furman reported a one-year return of 11.5% as of June 30, 2025. Furman’s diversified portfolio across asset classes, styles, sectors, and geographies is designed to withstand short-term volatility and periods of market uncertainty. Diversification remains a key theme amid a high level of systemic noise. In FY 2025, public equities outperformed private investments, real assets lagged, and hedged strategies made a significant contribution to Furman’s overall performance.
7.8% 9.1% 10.8%
5 years
10.3% 7.4%
10 years
7.0%
0
2
FURMAN POOL
4
6
8
FURMAN POLICY INDEX
10
12
LEARN MORE For a more detailed look at Furman’s endowment investment information, including policies and historical data, please visit: furman.edu/endowment. Please contact the Furman University Office of Donor Relations with any questions or comments you may have at donorrelations@furman.edu or by calling Rebecca Bilott at 864.294.3704.
7
3300 Poinsett Highway
Greenville, South Carolina 29613