Annual Endowment Report FY24

FISCAL YEAR 2024

ENDOWMENT FINANCIAL REPORT

A MESSAGE FROM THE INTERIM VICE PRESIDENT Dear Friends, Thank you! These two words do not seem adequate to express our gratitude for all you have done to support and enhance the student experience at Furman University.

Your foresight and generosity continue to help provide an unparalleled foundation that prepares our students for lives of purpose and meaning.

This has been another incredible year at Furman.

We celebrated the completion and opening of the new Lakeview Residence Hall, continued renovations at the North Village apartments and broke ground for the extensive renovation of Timmons Arena.

Our students experienced tremendous success both in and out of the classroom. They were awarded prestigious Goldwater and Fulbright Scholarships, and 235 student-athletes were named to the Southern Conference Academic Honor Roll.

The Clearly Furman Campaign continued the momentum following the public launch in April 2022 with events in Atlanta, Charleston, Charlotte, Columbia, Orlando, Tampa, and Palm Beach. More than $70 million was committed in support of student scholarships, faculty development, facilities and programs. Over the life of the campaign, more than 23,000 individuals and more than 62% of our alumni have made gifts and engaged in meaningful ways.

Furman continues to climb in national rankings, reaching 35th in Forbes' “Top Liberal Arts Universities.” In this year’s U.S. News & World Report “Best Colleges” rankings, Furman is 45th in the National Liberal Arts College category, 7th for “Most Innovative” among our peers, and 22nd for best first-year experience among all universities in the country. And, of course, Furman continues to be celebrated as one of the most beautiful campuses in the nation.

The ongoing success and recognition that our students and campus community receive are a reflection of you and your generosity. You are a part of the fabric that supports, inspires, and encourages us each day. Thank you for creating opportunities and providing a life-changing education that enables our students to impact our communities and the world.

In service,

Shon R. Herrick Interim Vice President for Development

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“I am so grateful for the scholarships I have received, as they have allowed me to attend Furman and grow within the community. I love Furman and all that it has to offer, and being a student here has been such a wonderful opportunity.

If it wasn’t for the generous donors of Furman, I would not be where I am today. Thank you so much for your continued support and generosity towards the university and its students. You are greatly appreciated!”

ALYSSA I. ’26, SHEPARD SALTZMAN SCHOLARSHIP

“This scholarship has been a blessing as it has provided some financial relief for my family. Without this opportunity, I would not have been able to fully focus on my academics and life at Furman with a financial burden. I am so beyond grateful to be blessed with this opportunity and I appreciate the people that have made my student success possible.”

LILLIAN D. ’27, CAROLINE WILLIAMS PLYLER SCHOLARSHIP

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ENDOWMENT OVERVIEW ENDOWMENT VALUATION

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he Furman University endowment provides a significant source of revenue which supports the operations and programs of the university. As of June 30, 2024, Furman’s total endowment was valued at $828 million, of which $636 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 2023-24 fiscal year, approximately $36.5 million was distributed from the total endowment.

The endowment distribution contributed approximately 21% to the University’s annual budget.

$839M

Value on 7/1/2013

$650,034,650

Net Investment Return

$387,296,806

Distributions

($330,571,849)

Gifts

$120,979,009

VALUE AT 6/30/2024

$827,738,616

$800M

$661M

$631M

$610M

FY15

FY16

$703M

$694M

$670M

FY18

FY19

FY20

$812M

$787M

$828M

$600M

$400M

$200M POOL HELD BY OTHERS AND SEPARATELY INVESTED

$10,353,067 NEW ENDOWMENT GIFTS during FY24

$36.5M TOTAL DISTRIBUTION during FY24

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FY17

FY21

FY22

FY23

FY24

ENDOWMENT DISTRIBUTION

46.3% Scholarships 19.5% Departmental, library, programs, other 11.8% Facilities operation, maintenance, improvement 11.0% Professorships 11.4% Unrestricted budget support

MANAGEMENT AND ASSET ALLOCATION

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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

22.2% Private equity/venture

9.1% Real assets/natural resources

21.7% International equities

6.0% Fixed income

18.6% U.S. equities

2.2% Cash

18.5% Hedged strategies

1.7% Private Credit

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SOURCES OF INCOME

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SOURCES OF INCOME

otal distributions from the endowment and other university investments comprise approximately 23% of the university’s annual budget. Approximately 58.6% 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.

58.6% Net tuition, fees, room and board, other auxiliaries 26.1% Distribution from endowment/other investments 7.9% Private gifts, grants and CARES Act 7.4% Other

PERFORMANCE

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iscal Year 2024 commenced amid concerns of a hard landing, as the Federal Reserve reiterated its “higher for longer” stance, resulting in a decline in equity markets from August through October. However, corporate earnings rebounded, and inflation fears eased as the Fed’s tone shifted to a less hawkish stance.

This led to a robust rally in global equities, which emerged as the leading contributor to FY 2024 performance.

The S&P 500 was once again propelled by mega cap tech with the six largest stocks alone accounting for over 50% of the index’s gains. Trends from FY 2023 persisted, with growth stocks outperforming value stocks and large-cap stocks leading smallcaps. Sector-wise, communications services and information technology were the main contributors, while real estate declined.

In developed markets outside the U.S., Japan emerged as the strongest performer, though yen weakness dampened returns for U.S.-based investors. Meanwhile, emerging markets faced challenges, particularly in China, where consumer and business sentiment remained depressed. However, Taiwan boosted emerging markets due to strong demand for AI-related components, and India experienced another robust year driven by structural growth trends.

Despite Fed guidance suggesting three rate cuts in calendar year 2024, market expectations soared to as many as seven cuts initially, which proved overly optimistic. The disinflationary trend and rising unemployment led to rate cut expectations that steepened the yield curve, resulting in short-term rates outperforming long-term ones. Credit spreads tightened, favoring high-yield and leveraged loans over investment-grade credit.

Performance in real assets was mixed; energy infrastructure and resource equities rose due to strong demand and production cuts, but global REITs faced challenges from negative sentiment in commercial real estate. The office sector witnessed significant distress, while the multi-family sector also struggled due to increased supply and assets acquired at peak prices accompanied by substantial floating-rate debt.

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Infrastructure continued to be a key theme centered around power demand, driven by the penetration of electric vehicles (EVs), decarbonization efforts, expanded manufacturing, and rapid growth in AI. Private equity performance saw an improvement in the latter half of FY 2024, as buyout deal volume increased.

Large deals made a comeback, and add-on acquisitions filled the gap left by fewer platform deals, though fundraising challenges persisted for general partners. Venture capital faced ongoing distribution challenges, prompting many limited partners to explore secondary markets.

Hedged strategies excelled in FY 2024, with directional equity and credit strategies outperforming relative value and macro approaches. Furman reported a one-year return of 9.1% as of June 30, 2024. Furman’s portfolio, diversified across asset classes, styles, sectors and geographies is designed to perform across market cycles and has an emphasis on the benefits provided by alternatives. In FY 2024, private markets, particularly in venture capital and real assets underperformed while global equities and hedged strategies made significant contributions.

3%

3 years

4.1% 7.8%

5 years

7.8% 6.3%

10 years

5.9%

FURMAN POOL

FURMAN POLICY INDEX

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.

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