URIFAE Endowment Report 2022

Endowment Report Your Investment in the University of Rhode Island’s Future

SUMMER 2022

This report was prepared by URI Foundation & Alumni Engagement to provide an overview of the investment performance and impact of URI's endowment.

URI Endowment Performance and A MESSAGE FROM

Deborah A. Imondi ’83 M.B.A.’86 Chair of the URI Foundation & Alumni Engagement Investment Committee The Investment Committee for the University of Rhode Island Foundation & Alumni Engagement has been closely monitoring the global economic challenges of the last several months. The URI endowment is at $204.2 million, with a one-year loss of 5.3 percent as of May 31, 2022, compared to the benchmark loss of 7.1 percent. While the stock market has declined during the second half of the fiscal year, gifts from alumni, parents, friends, corporations, and foundations have contributed to our long-term stability.

The Committee’s portfolio management strategy aims to maintain support for the University’s short-term and long-range goals in the midst of market fluctuations. Reliable endowment funds are essential to sustain and expand scholarships, professorships, research funding, and so much more.

In June 2022, the URIFAE Board of Directors voted on a distribution of 3.6 percent, taking into account the investment performance of the portfolio and the needs of the University.

URI faculty are leaders in their fields who encourage undergraduates and graduate students to explore, learn, question, and apply their knowledge. By inspiring innovative thinking, URI is contributing to individual success and the betterment of society. Thank you.

With best regards,

Deborah A. Imondi ’83 M.B.A.’86

IN THE WORDS OF OUR STUDENTS… “This scholarship helped me feel acknowledged for the hard work I put in at URI, and it has relieved some of the stress I have about student loans.”

Isaac Scarborough ’24 Major in ocean engineering, Milsboro, Delaware

“I’m very grateful for the scholarship I received. I was worried about being able to pay for school and this scholarship has taken away the financial burden.”

Robin Fidel ’23 Double major in biotechnology and data science, Providence, RI

Activity Report

$204m value of the URI endowment as of 5/31/22

$6.4 m endowment payout for the 2022-2023 year

1,223 endowed funds managed

by URI Foundation & Alumni Engagement

866 endowed funds support scholarships

2,309 private scholarships awarded to students

81% of students receive some form of financial aid (federal, state, private)

ANNUAL ENDOWMENT PAYOUT

ASSET ALLOCATION as of May 31, 2022

The following graph represents the total amount of endowment-generated funds distributed to URI each fiscal year, based on URIFAE’s spending policy, for use over five academic years.

IN MILLIONS $6.0

12.9%

U.S. EQUITY

GLOBAL EX U.S. EQUITY

6.4 5.7

$5.0 $4.0

29.4%

4.2

5.4

4.6

7.2%

$3.0

EMERGING MARKETS EQUITY

$2.0 $1.0

6.4%

$0

2019

2020

2021

2022

2023

GLOBAL EQUITY

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

10.4% 21.3%

PORTFOLIO VALUE As of May 31, 2022, the University of Rhode Island’s endowment portfolio had a market value of $204.2 million. The market value for each of the past five years on May 31 is represented below. $225

12.4% PRIVATE INVESTMENTS

IN MILLIONS

213

$200 $175 $150 $125

MARKETABLE ALTERNATIVES

FIXED INCOME AND CASH

140

143

2018

2019

204

THE INVESTMENT OF URI’S ENDOWMENT

159

$100 $75 $50 $0

2020

2021

2022

ANNUALIZED RETURN ON INVESTMENT The annualized return on URI’s general endowment portfolio, as of May 31, 2022, was -5.3 percent.

The returns for the past five years are shown below.

Find a complete listing of endowed funds at urifae.org/endowmentfunds.

INCREASE/DECREASE AS OF MAY 31, 2021

8.0%

2018

-1.3%

If you have questions about your fund or the endowment in general, please contact Gina Simonelli, director, donor relations and engagement at 401.874.7101 or gsimonelli@uri.edu.

2019

2020 3.2%

33.5%

2021

-5.3%

Spending Policy: The endowment spending rate that will be applied in the 2022–2023 academic year is 5.05 percent, which contains both the University distribution and the URIFAE administrative fee. The University payout increased from 3.5 to 3.6 percent of the market value of the endowment (calculated on a 12-quarter rolling average ending on December 31, 2021). The administrative fee decreased from 1.55 to 1.45 percent. The dollar value of the payout to the University to support gift purposes this year will increase from $5.4 million to $6.4 million.

2022

UNIVERSITY OF RHODE ISLAND FOUNDATION & ALUMNI ENGAGEMENT campaign.uri.edu

79 UPPER COLLEGE ROAD, KINGSTON, RI 02881-2023 401.874.7900 | urifae.org