Page 1

Projections 22 December 2016

Path to Financial Stability


A note about the

1

projections


The following are two sets of projections to model the potential financial impact of the vestry’s recommendations on endowment funds’ growth and changes to distributions for Cathedral operations over an 8-year period. The first set assumes 5% investment growth over time (which approximates the funds’ 20-year average return). The second set assumes a more conservative 4.5% return on investments. Both sets include many assumptions that may or may not turn out to be accurate, and neither set includes principal growth from future gifts the Cathedral may receive, but the projections provide two estimates of how withdrawing $4.1 million in 2017 to repay debt and finance facility repairs and maintenance, and reducing annual endowment distributions from 5% to 4% by 2023, might impact the endowment funds’ future value and funding for Cathedral operations


Saint John’s Cathedral

Endowment Financial Projections 5%

Year 1 2017

Year 2 2018

Year 3 2019

Estimated Endowment 12/31/2016 Less non-liquid assets* Investable Endowment

26,405,448 (1,991,103) 24,414,345

Total Invested Funds less draws Investments after withdrawal Investment growth (@5.0%) subtotal

24,414,345 (4,100,000) 20,314,345 983,987 21,298,333

20,611,438** 20,611,438 999,382 21,610,820

20,363,218 20,363,218 988,261 21,351,479

Non-invested Assets TOTAL ENDOWMENT

1,991,103 23,289,436

1,408,800 23,019,620

1,408,800 22,760,279

less draws

(1,269,198)

(1,247,602)

(1,195,990)

Draw Rate

5.00%

5.00%

5.00%

* Non-liquid assets includes Cathedral Ridge note (valued at $1,308,800; earning 3%/year), clergy housing ($545,234, to be sold in 2017) and cash ($137,049 in 2017, $100,000 in later years) ** Includes additions from sale of real estate holding ($545,254) and adjustment to cash (-$37,049) Note: This projection includes many assumptions, including future investment returns, which may or may not turn out to be accurate.

3


Year 4 2020

Year 5 2021

Year 6 2022

Year 7 2023

Year 8 2024

20,155,490 20,155,490 979,004 21,134,494

19,983,694 19,983,694 972,802 20,956,496

19,901,188 19,901,188 970,312 20,871,500

19,881,591 19,881,591 970,881 20,852,472

19,924,539 19,924,539 974,495 20,899,035

1,408,800 22,543,294

1,408,800 22,365,296

1,408,800 22,280,300

1,408,800 22,261,272

1,408,800 22,307,835

(1,150,800)

(1,055,308)

(989,909)

(927,933)

(869,261)

4.75%

4.50%

4.25%

4.00%

4.00%

12/21/16

4


Saint John’s Cathedral

Endowment Financial Projections 4.5%

Year 1 2017

Year 2 2018

Year 3 2019

Estimated Endowment 12/31/2016 Less non-liquid assets* Investable Endowment

26,405,448 (1,991,103) 24,414,345

Total Invested Funds less draws Investments after withdrawal Investment growth (@4.5%) subtotal

24,414,345 (4,100,000) 20,314,345 983,987 21,298,333

20,513,039* 20,513,039 894,710 21,407,749

20,146,544 20,146,544 879,425 21,025,969

Non-invested Assets TOTAL ENDOWMENT

1,991,103 23,289,436

1,408,800 22,816,549

1,408,800 22,434,769

less draws

(1,269,198)

(1,261,205)

(1,207,541)

Draw Rate

5.00%

5.00%

5.00%

* Includes additions from sale of real estate holding ($545,254) and adjustment to cash ($37,049) Note: This projection includes many assumptions, including future investment returns, which may or may not turn out to be accurate.

5


Year 4 2020

Year 5 2021

Year 6 2022

Year 7 2023

Year 8 2024

19,818,428 19,818,428 865,764 20,684,192

19,525,734 19,525,734 855,068 20,380,802

19,332,355 19,332,355 848,047 20,180,402

19,206,660 19,206,660 843,879 20,050,539

19,142,936 19,142,936 842,408 19,985,344

1,408,800 22,092,992

1,408,800 21,789,602

1,408,800 21,589,202

1,408,800 21,459,339

1,408,800 21,394,144

(1,158,458)

(1,048,448)

(973,741)

(907,602)

(845,531)

4.75%

4.50%

4.25%

4.00%

4.00%

12/21/16


1350 Washington Street Denver, Colorado 80203 sjcathedral.org 303.831.7115

Path to Financial Stability— Projections  
Read more
Read more
Similar to
Popular now
Just for you