2016-17 Oklahoma City University Endowment Report

Endowment Report 2016-17

TRADITION LIVES AT OKLAHOMA CITY UNIVERSITY.

THANK YOU

Educating Leaders Since 1904 With Your Support Thank you for your continued generosity in supporting Oklahoma City University’s endowment. Your investment allows the university to provide our students with the resources they need to reach their full potential. Whether they pursue studies in business, art, law, music, nursing, science, religion, or the performing arts, students gain the knowledge and experience needed to succeed in an ever-changing global landscape. Through classroom instruction, hands-on learning in laboratories and studios, internship opportunities, and extracurricular activities, OCU students become leaders and important contributors to our society.

ensure our continued ability to thrive in the years ahead.

RICHARD PARRY Chair, Investment Committee

GARY HOMSEY Chair, Resource Development Committee

ENDOWMENT GIFTS ALLOW US TO “THINK BIG” AND INVEST IN STUDENTS AND FACULTY, PROGRAMS, AND FACILITIES TO

Over the past academic year, OCU endowment fundraising highlights include the creation of several new endowed scholarships from more than $500,000 in donations. These new endowed scholarships will provide financial resources for students across many disciplines. Additionally, two separate $1 million endowed funds were established to provide critical resources enabling OCU’s Meinders School of Business to expand research, teaching, and implementation of data analytics, as well as global learning capabilities

Endowment gifts play a fundamental CONTINUE TO THRIVE. OCU’s successes this year would not role in the continued growth of be possible without your unwavering Oklahoma City University. This support support and commitment. On behalf helps to ensure that generations of OCU students will enjoy an of the University’s Board of Trustees, our students, and our exceptional private university education. An endowment creates faculty and staff, we thank you for your dedication to helping a lasting legacy, and the income it generates in perpetuity our students become fully prepared to embark on their personal enables us to “think big” and invest in students and faculty, roads to success. programs, and facilities that will strengthen the university and

National media outlet OnStage named the BFA Dance Program #1 in the Country for 2017–18.

Our generous and faithful donors continue to provide

a significant margin of excellence for students and the faculty, staff, and programs that support them. Their

philanthropy makes a profound, positive impact and

continues to help make Oklahoma City University the best educational institution possible.

Many of our donors choose to direct their gifts toward endowment. OCU’s endowment, including endowment held by other entities for the benefit of OCU, is made up of 624 individual funds designated to provide perpetual financial support for scholarships, faculty professorships and chairs, the various schools, library resources, and other endowed programs. Of these funds, 538 are held by OCU, 67 by the Oklahoma United Methodist Foundation, and 19 by the Oklahoma City Community Foundation.

ENDOWMENT Endowment Assets by School/Department Dance & Arts Management • 1.84% Law • 15.29% Library • 0.54% Music • 14.17% Nursing • 1.73% Religion • 11.47% Clockwise from top of graph:

St. Paul School of Theology • 0.13%

Alumni • 0.11%

Student Aid • 12.65%

Arts and Sciences • 11.2%

Theatre • 0.59%

Athletics • 1.44%

University-Church Relations • 0.68%

Business • 20.08%

Other • 8.08%

100% of pre-pharmacy students have been accepted to pharmacy school in the past 10 years.

Scholarships Created to Honor Renaissance Men The U.S. Schaul Endowed Scholarship in Philosophy and the Gordon Tasker Schaul Endowed Scholarship in English were established by their great-grandson and son Mr. Edward Schaul in May 2017 to provide recognition and financial assistance each year to deserving students in the Petree College of Arts and Sciences.

The Gordon Tasker Schaul Endowed Scholarship in English is named in honor of Mr. Gordon Schaul. Gordon earned his bachelor’s degree in business and MBA from the University of Oklahoma, but his first college experience was at Oklahoma City University in 1925. As captain of the tennis teams in high school and at Oklahoma City University, Gordon formed friendships that lasted a lifetime. After three years at the University of Oklahoma, Gordon tried his hand in the nascent oil business, taking leases and developing drilling prospects. He went on to earn a JD from Cumberland Law School. He was a businessman and lawyer in Oklahoma City until his death in 1997.

The U.S. Schaul Endowed Scholarship in Philosophy is named in honor of the Rev. U.S. Schaul. A Phi Beta Kappa graduate and a member of the Philomathean Society of the University of Pennsylvania, he wrote and spoke Greek, Hebrew, and German. He crewed and played tackle on the varsity rowing and football teams, won prizes for debate in philosophy, English literature and Greek prose composition, and earned honors all terms.

Both scholarships were started with a $100,000 gift each, allowing Mr. Schaul to also name two classrooms within the Petree College of Arts and Sciences in honor of the two men.

U.S. Schaul

INVESTMENT PERFORMANCE OCU’s five-year investment performance is in line with Lipper Median peers. For the 2016 fiscal year, several factors, including a surging U.S. dollar, decline in nondollar denominated bonds, and commodity/mineral interest declines affected performance results.

17 % 7.

21 % 7.7 3%

%

%

62

14 12 10

NOTES

8

1 Lipper Median returns from the Lipper mutual fund universe for balanced

6 PERCENTAGE

funds in the asset class category. As of 6/30/17, the universe consisted of 5,047 peers. Source: Wilshire Associates, Lipper, and Wespath.

2 Historical returns are time weighted. Returns greater than one year are annualized.

3 Past performance is no guarantee of future returns.

8.

The information in this document was obtained from sources believed to be reliable; however, accuracy is not guaranteed.

Historical returns are not indicative of future performance.

4.

12 .7 8 10 % .0 3 9. % 94 %

The historical returns presented herein represent the actual historical returns of the OCU Endowment which reflect the deduction of fees charged by third parties.

35% S&P 500 Index / 20% MSCI EAFE Index / 45% BC US Aggregate Intermediate Index

%

Lipper Median

63

OCU Endowment

69

AS OF JUNE 30, 2017

3.

■

3.

NET OF FEES

4 2 0 1 Year

Since 2010, 100% of mass communication graduates have found jobs within six months after graduation.

3 Years

5 Years

Management & Strategies

Oklahoma City University is committed to prudent, time-tested investment strategies and fiscal policies. The Board of Trustees’ Investment Committee is charged with overseeing its funds and measuring the returns they produce against nationally recognized standards and metrics for investment performance.

Broad Asset Allocations OCU ENDOWMENT

■

$67.4 MILLION Equities • 59.0%

The Investment Committee actively monitors the financial markets to control risk and evaluate exposure for all asset classes. The Oklahoma United Methodist Foundation serves as investment manager and advisor to the Board of Trustees’ Investment Committee.

Fixed Income • 36.3% Alternatives • 4.7%

In managing the endowment, the University seeks to balance the dual objectives of enhancing the future purchasing power of endowment funds and meeting current spending needs. The endowment is invested with a long-term horizon to ensure that it will grow at a rate above inflation, while providing a stable stream of income to support the purposes for which its funds were created.

Endowment growth is due not only to the generosity of thousands of alumni, friends, corporations, and foundations through the years, but also to the careful stewardship provided by the Board of Trustees.

Detail Asset Allocations OCU ENDOWMENT

■

$67.4 MILLION Cash • 2.3% U.S. Equity Fund • 31.4% International Equity Fund • 27.6%

ASSET CLASS OVERVIEW

Fixed Income Fund • 21.6%

OCU’s directly managed endowment portfolio of $67,369,323 was composed of these asset classes as of June 30, 2017. The guiding principle of OCU’s consolidated endowment program is that funds should be managed so that a gift today will fund a donor’s objective in perpetuity.

Inflation Protection Fund • 8.4% Alternatives • 3.8% Mineral Interests • 0.9%

Assets and Distributions Distributions from Assets Under Management

Our endowment has maintained strong financial growth as demonstrated by the five-year average

65

3.0

return of 8.17 percent on endowment investments.

60

2.8

The market value of endowment funds, including

55

2.6

50

2.4

45

2.2

40

2.0

35

1.8

2013

2014

2015

2016

2017

MILLIONS OF DOLLARS

MILLIONS OF DOLLARS

Assets Under Management

endowments held by other entities for the benefit of OCU, was $ 104,370,076 as of June 30, 2017. This report highlights those funds directly managed by OCU trustees through the Oklahoma United Methodist Foundation.

OCU is home to the oldest Teaching English as a Second Language program in the state of Oklahoma.

DON’T LET TIME DESTROY YOUR DREAM

2016-17

Otis Schoonover

New Endowments

DEB HEINE ENDOWED SCHOLARSHIP

Erik Heine established this endowed scholarship in September 2016 in honor of his mother, Deb Heine. The endowed scholarship will provide recognition and financial stability to a deserving student or students enrolled in the Wanda L. Bass School of Music to address their necessary educational expenses. The scholarship will be awarded to a student(s) who is pursuing a Bachelor of Arts, Bachelor of Music, or Bachelor of Music Education degree; has completed five semesters at OCU; and has at least one semester of study remaining for their bachelor’s degree.

EMOGENE COLLINS MUSIC ENDOWED SCHOLARSHIP FUND Emogene Collins established this endowment fund in January 2017 to provide recognition and financial stability to a deserving student or students enrolled in the Wanda L. Bass School of Music to address their necessary educational expenses.

The scholarship will be awarded to a student who is pursuing a Bachelor of Music: Vocal Performance, holds a GPA of 3.5 or higher, and has demonstrated need.

KELLI O’HARA MUSIC ENDOWED SCHOLARSHIP The O’Hara Family established this endowment fund in May 2017 to create scholarship awards in honor of Kelli O’Hara. The purpose of this fund is to provide recognition and financial assistance annually to a deserving student or students

enrolled in the Wanda L. Bass School of Music to meet necessary educational expenses. Recipients will be current students pursuing a Bachelor of Music: Voice Performance, with a GPA of 3.5 or higher, and with demonstrated need.

KENT HOYT SLAUGHTER MEMORIAL ENDOWED SCHOLARSHIP The trust of Glenn Hoyt Slaughter was used to establish this endowment fund in January 2017 to create scholarship awards in memory of Kent Hoyt Slaughter.

This fund is meant to provide recognition and financial assistance annually to a deserving student or students enrolled in the Meinders School of Business.

The scholarship will assist in defraying the costs of tuition, books, and fees for the recipients. Recipients will matriculate and continue as a Meinders School of Business student pursuing a BA or BS degree; be enrolled as a sophomore, junior, or senior; be enrolled as a full-time student; and maintain a minimum 2.5 GPA. LEO WERNEKE ENDOWED FUND This fund was established in March 2017 for the OCU Philosophy Department with gifts restricted for use by this department within the Petree College of Arts and Sciences. The purpose of this fund is to support activities of and further enhance the mission of the Department of Philosophy and Rhetoric by providing

Oklahoma City University’s School of Theatre produces and supports more productions than any other undergraduate program in the U.S.

Otis Schoonover knows from experience what it’s like to work full time while holding a full-time college course schedule. Five days a week with class in the morning, no lunch break, work until nearly bedtime and even some weekend mornings. The rest of the weekend slumped over books, doing homework or preparing for the upcoming test.

“I would go to class at 7:15 in the morning and went to work at 12:30 every day, eating a sandwich on the way. I worked until 8 or 10 at night and on Saturday mornings. The next week, start it all over again,” Schoonover said.

The reasons the 1958 graduate stayed at OCU to complete his Bachelor of Science in Accounting are numerous. Schoonover appreciated the assistance from professors and administrators. They helped him test out of a class, which allowed him to finish a semester early. His advisor, a marketing professor, helped him cram for two tests outside of class, saving him six credit hours to avoid having to return in the summer.

And when a class he needed didn’t match up with his schedule—a Business Machines class requiring mastery of calculators and office tools—a professor let him practice with the university’s equipment until he was ready for the test.

However, the most important reason he stuck with his grueling schedule was the hope of building a better life for himself and his wife, Billie, his inspiration to obtain a college degree and the namesake of his recently established scholarship fund. They met in the third grade, wed during

college, and were married for 60 ½ years until she passed away in July 2016.

“She pushed me harder than I pushed myself to finish school,” he quipped.

“I needed her encouragement to get me through.”

Schoonover was born in Stillwater during the Great Depression in 1935.

His father was a foreman in road construction and travelled around the state. He attended a one-room schoolhouse that hosted students from first grade through high school.

“We had no government telling us we were poor,” he said. “We were responsible for ourselves. If we wanted something, we had to work for it.”

Armed with his life experiences and degree, he started a 20-year career at Demco, an oilfield equipment manufacturer, as an accountant responsible for materials management, inventory control, and other duties, and retired after 21 years as operations manager for Piper Oilfield Products at age 80.

He wanted to set up an endowed scholarship to honor Billie and direct it for future students who show a similar dedication to their studies but have a hard time affording college.

“If I can pay back for someone who has a strong desire for a degree, … maybe this will be enough to get them over the edge,” he said. “A little encouragement to keep on trucking.”

financial support for student and faculty programming, such as department events, undergraduate research, and conference participation. Furthermore, the fund will also be used to award the annual philosophy student essay prize.

MARVONA EASLEY TAVLIN AND MICHAEL JOHN TAVLIN ENDOWED SCHOLARSHIP FUND Marvona Easley Tavlin and Michael John Tavlin established this endowment fund in June 2017. This scholarship will provide recognition and financial assistance annually to a deserving student or students enrolled as vocal or instrumental performance or education majors. Recipients will be current students pursuing a Bachelor or Master of Music with a major of vocal or instrumental music performance or education, a cumulative GPA of 2.75 or higher, and demonstrated need.

MEINDERS SCHOOL OF BUSINESS ADVISORY BOARD ENDOWED SCHOLARSHIP FUND The Meinders School of Business Advisory Board established this endowment fund in August 2016 to provide recognition and financial stability to a deserving student or students enrolled in the Meinders School of Business. The scholarship will be awarded to a student or students majoring in business, software engineering, or computer science in the Meinders School of Business.

RONNIE K. IRANI DATA ANALYTICS CENTER ENDOWMENT FUND Ronnie K. Irani established this endowment fund in June 2017 to provide critical resources enabling OCU’s Meinders School of Business to expand research, teaching, and implementation of data analytics.

RONALD K. RAINES ENDOWED VOCAL SCHOLARSHIP FUND Ronald K. Raines established this endowment fund in October 2016 to provide recognition and financial assistance annually to a deserving student or students enrolled as vocal majors in the Wanda L. Bass School of Music to meet their necessary educational expenses.

TAN SRI DR. LIM WEE CHAI INTERNATIONAL TECHNOLOGY RESOURCE CENTER ENDOWED FUND Tan Sri Dr. Lim Wee Chai of Malaysia established this endowed fund in September 2016 to provide critical resources to expand Meinders School of Business educational programs around the world with quality, relevance, and convenience.

The funding will enable the Meinders School of Business to support the salary of a center director who will assure the effective use of cutting-edge technology, as well as investment in equipment and programs to make efficient use of educational opportunities on a global scale.

Meinders School of Business has one of the only collegiate-level DECA organizations, teaching leadership and career-focused skills.

Endowment FAQs WHAT IS AN ENDOWMENT? Individual endowments represent the legacy of benevolent donors who invest for long-term growth. An endowment is timeless because the corpus of the endowment fund is not depleted. Instead, the investment income and gains earned from an endowment advance the strategic vision of the donor on a continuing basis.

WHY ARE ENDOWMENTS IMPORTANT? Endowments build a legacy of support that spans generations. As a permanent legacy, they will continue to give educational opportunities to the most talented students long into the future. They also allow OCU to recruit and retain the best teachers to build programs and act as esteemed mentors to our students.

WHAT ARE THE MINIMUM ENDOWMENT LEVELS TO ESTABLISH A NAMED ENDOWED FUND? The minimum gift required to establish a named endowment fund is $25,000.

Endowment gifts can be pledged and paid over a period of up to five years.

Some examples of minimum guides for named endowed funds are: ■ ■ ■

Scholarship: $25,000 Professorship: $500,000 Chair: $1,000,000+

WHOSE NAME IS ON THE ENDOWMENT? Donors are encouraged to name their endowed fund in a way that is meaningful to them. Many donors establish an endowment in honor of a specific person – a family member, professor or coach – and name the fund accordingly. Endowments can also be named more broadly for the discipline they support or the group or individuals who establish them.

CAN I GIVE TO AN EXISTING ENDOWMENT? Yes. Unless you state otherwise in your memorandum of understanding when the gift is established, the fund can be left “open” to future gifts from you or others who choose to support the fund. While there is a minimum of $25,000 to establish a new endowment, there is no minimum gift required for increasing the size of an existing endowment.

CAN I CHOOSE WHAT MY ENDOWMENT SUPPORTS? Yes. A number of donors to Oklahoma City University choose to restrict how their funds can be used. You can designate your gift to support a particular school or program, special initiative, library, or other opportunity at the University.

HOW IS AN ENDOWED FUND INVESTED? OCU adheres to investment policies intended to provide a balance of risk and return in the portfolio. The investment portfolio is diversified to keep volatility within acceptable limits for the portfolio as a whole. This provides the greatest assurance that future generations benefit from the endowment as much as current students.

WHEN WILL AN ENDOWMENT BEGIN GENERATING PAYOUT THAT CAN BE SPENT? Once the initial gift has been received, the minimum required funding levels have been achieved, and all required paperwork has been completed, initial payout of funds typically will become available within one year.

HOW IS THE AMOUNT OF ANNUAL PAYOUT DETERMINED AND THEN DISTRIBUTED? The amount of payout allocated each year varies because it is based on the market value of the endowment portfolio. The Board of Trustees reviews and approves the spending rate annually. The average spending rate for the past five years has been approximately five percent of the endowment’s average market value.

HOW DOES THE ENDOWMENT INCREASE IN VALUE? While investment returns help to fuel the growth of OCU’s endowment, the addition of gifts is more important over the long term. Recurring contributions are important because this allows for averaging the cost basis over time.

Advancing OCU Cash, securities, or planned gifts are excellent ways to build an existing endowment or establish a new fund.

OFFICE OF ADVANCEMENT ■ (405) 208-7000 ■ give@okcu.edu ■ okcu.edu/give DENNIS HUNT ■ Interim Vice President for Advancement ■ ddhunt@okcu.edu JUDY REYES-HENDERSON ■ Assistant Vice President for Development ■ jareyeshenderson@okcu.edu

The Kramer School of Nursing boasts 2,027 alumni practicing in every major health field.