Simon Fraser University Endowment Stewardship Report 2016

Endowment Stewardship Report / 2016

Thank you The past year has been a milestone one for Simon Fraser University as we celebrated 50 years of research and innovation, teaching excellence, student achievement and community engagement.

Since 1965, SFU has grown from an upstart university to a top-ranked and highly respected educational institution.

In those 50 years, our dedicated donors, including alumni, community friends and corporate partners, have supported Canada’s leading engaged university. This fall we’ll mark the successful completion of The Power of Engagement Campaign. We’re on track to raise well over $250 million for students, research, programming and capital projects. Our efforts to increase the endowment have paid off, as we have nearly doubled the size of the fund.

Gifts to the SFU Endowment contribute to the continued growth and evolution of the university by creating a lasting legacy of support for student awards, research chairs and professorships, faculty programs and facilities.

We’re deeply grateful for your generosity. Your investments in the university foster the innovation and intellect of students and faculty who are transforming the world.

Warm regards,

Chris Arnet Interim Vice President Advancement and Alumni Engagement Simon Fraser University

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Meet the Clements How do Sharon and Shaughn Clements feel about creating endowments at SFU? The short answer is “good.” The long answer is much more interesting…

It was a seminal year—1965—a time when the old order clashed with the new, bringing Vietnam War protests, black freedom marches, feminism and the opening of Simon Fraser University.

Sharon and Shaughn were two of several thousand students who were among the first to attend Canada’s newest postsecondary institution. “It was vibrant, alive, full of energy and hope for the future,” Shaughn recalls.

Sharon was a charter SFU student studying biology, which led to a graduate degree as well as a career with Agriculture Canada.

Shaughn started his biology degree one year later in 1966; his undergraduate program led to a career with Financial Services at SFU, later overseeing the start of the department’s transition to computerization.

SFU’s famed sit-ins and protests were only rare diversions from the serious business of school. Sharon and Shaughn struggled to balance studies with work. Tuition may have been only $214 a semester, but wages were commensurate at about $1 an hour. On weekends, Sharon worked at the local public library.

Shaughn juggled a few campus jobs, from lifeguard to theatre manager. “I’d be up for three days running,” says Shaughn.

“I drank lots of coffee.”

Such experiences laid the foundation for the couple’s philanthropy. They first created an endowment fund in 1979 in memory of Shaughn’s grandmother, May Florence Lunn, to support the acquisition of library books. Years later, at the invitation of university librarian Dr. Charles Eckman, they enjoyed a lunch at the Diamond Alumni Centre. Shaughn uses a wheelchair when outside and noticed the poor condition of SFU’s sidewalks and curb cuts. This inspired the couple to create the Accessibility Fund to support infrastructure improvements.

Top: Friends of SFU Sharon & Shaughn Clements at a recent donor appreciation event. Bottom: Students enjoy a unique learning opportunity through donor-funded field trips.

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More recently, another need came to light. Students in biology, earth sciences, archaeology and geography must undertake field trips, which can cost up to $3,000. The financial burden is so onerous for some students they’re unable to complete their degree. Sharon and Shaughn generously established an endowment to support field trips.

“An endowment fund is

forever and you can take pleasure in knowing that funds for the purpose you choose will be available each and every year.

— Shaughn Clements

“

“Today, university students are facing unprecedented financial challenges in obtaining their degrees,” says Shaughn. “When we were in our late teens/early twenties, it was possible for our generation to have a summer job and pay for most, if not all, of the costs for two terms of study and graduate debt-free.”

The Clements specifically chose to create endowments for their long-lasting financial impact. “An endowment fund is forever,” affirms Shaughn. “And, you can take pleasure in knowing that funds for the purpose you choose will be available each and every year.”

Sharon and Shaughn have met with students, faculty and staff and heard first-hand the appreciation the SFU community has for their generosity. “Every time we look, we find areas where the need is desperate,” Sharon says. “So when we hear from students we’ve helped, it’s uplifting and refreshing. Giving, she adds, “gives us joy.”

Top: Shaughn & Sharon hiking in the 1990s. Bottom: Shaughn at convocation with his grandmother, May Florence Lunn, whom the Clements honoured with their first named endowment in 1979.

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Endowment financial summary Endowment overview

Asset mix

The university’s endowment consists of donations held in perpetuity. The endowment investment strategy aims to maintain the purchasing power of the original capital invested for future generations, while also ensuring that income available for spending allocations remains sustainable each year. The endowment fund is invested in diverse capital markets to meet this strategy over the long term.

Investment summary At March 31, 2016, the market value of SFU’s endowment investments totaled $400.9 million. Endowments are invested on a pooled basis and governed by the rules and guidelines established in the Endowment Management Policy and Investment Governance Policy under the supervision of the university’s Board of Governors and the Investment Advisory Committee. The investment pool is a diversified portfolio managed by external investment managers. It contains Canadian fixed income, Canadian equities, global equities and private equities, and is held by the independent custodian CIBC Mellon.

In 2014 the Simon Fraser University Board of Governors approved adoption of a responsible investment policy that included becoming a signatory of the United Nations Principles for Responsible Investment (UN PRI). SFU was the second Canadian university to move in this direction. The UN PRI provides a proven template for taking a more activist position grounded in application of environmental, social and governance (ESG) factors and an evidence base. SFU encourages investment managers to become signatories and engage with companies based on ESG criteria, enabling the university to influence the companies in which it invests.

The university has established a spending policy for all endowments to allow for reasonable growth in the endowment to provide sufficient cash flow to fund the activities and programs the donor intended. To assist in maintaining the stability of the annual endowment spending, the Endowment Stabilization Reserve was also set up to hold limited surplus investment earnings. At end of March 2015, the reserve balance was close to $78.3 million. In view of the growing balance in the Endowment Stabilization Reserve and strong endowment investment results during the past year, the university increased the Spending Income Allocation Rate for the endowment principal from 4.5% to 5.0%, effective April 1, 2015.

Canadian equities: 36% Global equities 33% Canadian fixed income 25% Alternative investment 6%

Endowment assets by purpose

Faculty, academic & other programs: 34% Student financial aid 29% Research chairs 28% Professorships 6% Library collections 2% Athletics: 1%

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SFU Endowment Stewardship Report 2016

Endowment highlights fiscal 2016

Generous donors created

33 new endowment funds

The endowment provided

$15.7 million in spending allocation for the support of university activities The University has committed

The value of SFU’s endowment

almost doubled during our 50th Anniversary Power of Engagement Campaign

The endowment investment portfolio

returned 0.4%

during the fiscal, 2.6% over benchmark

The market value of the SFU Endowment at March 31, 2016 was

$20 million

of the endowment to socially responsible investments The SFU Endowment comprises

853 individual endowment funds

$400.9 million

In the 2017 fiscal year, the endowment will provide at least $16.2 million in spending allocation – over 3% of the university’s operating budget.

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Investment performance Endowment annualized rates of return

The primary investment return objective of the Endowment Fund is to earn, over the mid and long term, an absolute annual rate of return that exceeds the annual rate of increase in the Consumer Price Index plus the Spending Income Allocation Rate, net of investment expenses. The fund is also measured against a composite benchmark calculated by Ellement Consulting Group, formerly API Asset Performance Inc., which is based on portfolios invested in major asset classes in broad market indices.

5.3 5.8 6.4

6.9 5.2

8.6

6.2

5% 0.4

0% -2.2

SFU’s endowment portfolio returned 0.4% for the past year, beating the composite benchmark by 2.6%. SFU’s endowment fund outperformed the composite benchmark over longer time horizons. Specifically, it beat the composite benchmark by 1.7% and 1.1% respectively over the five-year and ten-year periods.

The strong performance was a combined effect of asset allocation decisions and manager selection.

10%

-5%

1Y

5Y

10Y

Total endowment portfolio Endowment return objective Ellement endowment benchmark

Endowment market value 10Y growth $450M $425M

$325M $291,613,311

$262,309,206

2008

$175M

$249,793,101

2007

$200M

$179,749,681

$225M

$202,383,314

$250M

$202,429,842

$275M

$218,876,968

$300M

$353,440,659

$350M

$400,862,846

$375M

$401,508,515

$400M

2015

2016

$150M

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2010

2011

2012

2013

2014

Thank you all of the generous donors who established endowments at SFU last year!

List is alphabetical by award name.

A generous group of Albertan alumni established the Alberta Alumni Quinquagenary Award Endowment to recognize undergraduate students who have made positive contributions through community service to SFU or the external community.

Aziz Dossa, president of Creekside Custom Foods, and Parin Dossa, professor of anthropology at SFU, established the Aziz and Parin Dossa Essay Prize in Islamic and Muslim Studies Endowment to encourage academic discussion of cultures and societies within Muslim contexts and traditions.

The essay prize recognizes innovative graduate research and communication in the area of Islamic and Muslim studies within the Faculty of Arts and Social Sciences.

In appreciation and recognition of the first-class undergraduate education provided to her daughter, Alyssa Jordan, 30-year SFU employee and fellow alumna Chris Arnet established the Alyssa Jordan Undergraduate Award Endowment to support students who have made positive contributions to the SFU community, including leadership, volunteerism, and ambassadorship.

The Anne Giardini Undergraduate Bursary Endowment was established by SFU Chancellor Anne Giardini to support undergraduate students in any faculty who are experiencing financial need.

The Anthony Beyrouti Women’s Basketball Award Endowment was established by Mr. Anthony Beyrouti to recognize outstanding members of the SFU Clan women’s basketball team who are completing a bachelor’s degree in any faculty.

The Brian Taylor Undergraduate Award in Dance Endowment was established by Brian Taylor, with matching funds from the SFU Board of Governors in recognition of Mr. Taylor’s years of service to the university. Brian Taylor is a long-standing SFU volunteer and donor. He is External Director, SFU Community Corporation and Chair Emeritus, SFU Board of Governors. The award recognizes 3rd- or 4th-year undergraduate students in the Dance program in the Faculty of Communication, Art + Technology who have demonstrated significant promise as dancers or choreographers.

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The Diamond Family International Mobility Awards Endowment was established by Dr. Gordon Diamond and Mrs. Leslie Diamond, with matching funds from Simon Fraser University’s International Services for Students office. These endowed awards will assist undergraduate students with the costs of travel and living expenses while pursuing studies abroad. Gordon and Leslie Diamond and their family are longtime supporters and friends of Simon Fraser University.

Gordon is Chair of West Coast Reduction, has served on the board of the BC Cancer Foundation and holds an honorary degree from SFU. Leslie gives her time and expertise to many different organizations. Both Gordon and Leslie are recipients of the Order of British Columbia, were the 2009 co-recipients of SFU’s Distinguished Community Leadership Award and held key roles in SFU’s 50th Anniversary Campaign.

Linda Eaves and family established the Dr. David Eaves Graduate Scholarship in Statistics Endowment in memory of her late husband. Dr. David Eaves, a charter faculty member of SFU, and long-time member of the Department of Mathematics and Statistics, passed away in 2014 at 80 years of age. The award will support outstanding students in a graduate program in statistics at SFU.

The Community Education Impact Graduate Award Endowment was established by alumna Candy Ho and alumnus and staff member John Grant, with matching funds from the Faculty of Education and the Knowledge First Foundation. Candy and John are proud graduates of SFU’s Master of Education program in Educational Leadership, and credit their professional success to the MEd degree and the mentorship they received in the program. The award will support graduate students in the Faculty of Education whose research has practical applications for a community in need.

The Craig Asmundson BPK Award Endowment supports BPK undergraduate students who have demonstrated positive contributions to the SFU community including engagement, leadership, volunteerism, team work and/or ambassadorship of BPK to the external community.

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The Dr. Howard Malm Graduate Award in Physics Endowment was established by SFU alumnus Dr. Howard Malm, with matching funds from the Department of Physics.

The award recognizes outstanding Canadian graduate students in the Department of Physics.

The Dr. Josephine Anthony Award in BPK Endowment was established by Dr. Josephine Anthony, faculty member in the Department of Biomedical Physiology and Kinesiology (BPK), with matching funds from BPK, in honour of SFU’s 50th Anniversary. The award recognizes the achievements of undergraduate students in BPK who have overcome adversity in their lives and motivated others by their example.

The Hamilton Family Undergraduate Bursary Endowment was established by Emily Griffiths-Hamilton and Paul Hamilton and their sons, David and Brandon Hamilton. As alumni, they recognized the role SFU played in fostering their creativity, training them to track elaborate thought processes and develop imaginative concepts. The bursary is offered to students experiencing financial need.

David and Lora Hargreaves established the Hargreaves Scholarship in Science and Applied Sciences Endowment to support students pursuing a graduate degree in science or applied sciences whose research will contribute to the technology sector in B.C. The Heritage Education Funds Endowment supporting the Friends of Simon Tutoring Program was established by Tesh Chhachhi of Heritage Education Funds Inc., with matching funds from the Gordon and Leslie Diamond Friends of Simon Fund. Heritage Education Funds Inc. has been helping Canadian families realize their educational goals since 1965, and they also celebrated their 50th anniversary in 2015.

Friends of Simon is an SFU Faculty of Education program that recruits, prepares and assigns university students as literacy tutors in the Lower Mainland, particularly with newcomer kindergarten to grade 12 students.

Ruth Babcock and family established the Jim Babcock Fellowship in Graduate Liberal Studies Endowment in Jim’s memory. Jim Babcock entered the Graduate Liberal Studies (GLS) Program in 2001 and graduated in 2006. As a student, and later as an alumnus, he played a leading role in various fundraising and alumni development activities, and worked toward the eventual creation of a PhD option for GLS graduates. The fellowship will support PhD students whose research focus is within liberal studies.

The John and Leanne Rooney Graduate Entrance Scholarship Endowment was established in memory of John Rooney by his wife, Leanne, the Beedie School of Business as well as family and friends of the Rooneys. John graduated with an EMBA from SFU and was a PhD student at the Beedie School at the time of his passing. The multi-year scholarship will support outstanding graduate students in a master’s degree program at the Beedie School of Business.

The Lana Cooke International Mobility Award Endowment was established at SFU by Dr. Nimal Rajapakse, with matching funds from the office of International Services for Students, in honour of the late Lana Cooke’s more than 25 years of contribution and work accomplishments in the Faculty of Applied Sciences. The award will assist undergraduate students in applied sciences with the costs of travel and living expenses while pursuing studies abroad.

The Lawrence and Giselle Albright Urgent Need Bursary for Biological Sciences Students Endowment was established by Professor Emeritus Albright and Mrs. Albright with matching funds from the Ross Wilson Bequest Fund. The bursary supports undergraduate students who are facing a sudden emergency situation and for whom financial hardship would affect their ability to complete their program of study in biological sciences.

Janice Peace established the Janice Peace Community Engagement Award Endowment to recognize undergraduate students in the Faculty of Science who have demonstrated community engagement through volunteerism to SFU or the external community.

The Maureen Maloney and Andrew Petter Fellowship in Public Policy Endowment was established by Professor Maureen Maloney and SFU President Professor Andrew Petter to support outstanding students in the Master of Public Policy program who have demonstrated excellence in public policy and who have made, or will make, a contribution to the community.

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The Patricia Gallaugher Award in Coastal Science Management Endowment was established by the staff, faculty, alumni and supporters of the Faculty of Environment in Dr. Gallaugher’s honour. Dr. Gallaugher was the inaugural Director of the Centre for Coastal Science and Management as well as the director of Continuing Studies in Science and Environment at SFU. The award will recognize one master’s and one doctoral student conducting community-engaged research that informs policy and influences marine or environmental conservation.

The Paul Tang Memorial Entrance Fellowship in Philosophy Endowment was established with a gift from the estate of Dr. Paul Tang, Professor Emeritus of Philosophy at California State University, Long Beach. The fellowship aims to attract graduate students entering the MA program in the Department of Philosophy.

The Peak Undergraduate Bursary Endowment was established by the Peak Publications Society which publishes The Peak, a weekly newspaper created by SFU students, for SFU students. The bursary will support undergraduate students in any faculty experiencing financial need.

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The Premier Diversified Holdings Graduate Award Endowment was established by Premier Diversified Holdings, with matching funds from the Business and Entrepreneurship Scholarships for master’s and PhD Students at SFU. Premier Diversified Holdings Inc. is a Canadian corporation with its head office in Burnaby, B.C., and is, through its subsidiaries, involved in several businesses, including the design, financing and operation of free standing diagnostic imaging centres in Canada and China. The award will support SFU students in the Graduate Certificate in Science and Technology Commercialization program whose research has the potential to contribute to high impact economic and social innovation.

The Rosemary Brown Undergraduate Award in Social Justice Endowment was established by the Rosemary Brown Award for Women Committee and Rosemary Brown’s daughter, Cleta Brown, and son-in-law, Jay Sujir, via the Con Brio Foundation and augmented with additional gifts from friends and SFU’s Department of Gender, Sexuality and Women’s Studies (GSWS). The Honourable Rosemary Brown, PC, OC, OBC was a distinguished social worker and the first Black woman to be elected to a Canadian legislature, as well as a respected feminist and academic who taught at SFU as the inaugural Ruth Wynn Woodward Chair in Women’s Studies.

The award supports students majoring in GSWS who have demonstrated a commitment to social justice.

Scotiabank established three new endowments at SFU. In the Beedie School of Business, the Scotiabank Student Awards in Social Innovation Endowment will attract and retain entrepreneurial business students who plan to study social innovation and who demonstrate a passion for social enterprise. The Scotiabank Social Innovation Conference and Event Endowment will provide funding for experiential learning opportunities related to social innovation including conferences, lectures and mentorship or coaching programs involving professors, entrepreneurs and community leaders.

Lastly, the Scotiabank Social Innovations Student Team Competition Prizes Endowment will encourage cross disciplinary teams to find novel and sustainable solutions to society’s most pressing challenges by supporting student teams from disciplines across SFU. The Tony Parsad Memorial Undergraduate Award in Chemistry Endowment was established by Mr. Sanjeev Parsad, with matching funds from the Department of Chemistry, to reward students who have made contributions to the SFU or external community through leadership, volunteerism and ambassadorship. Tony Parsad, hired six months before SFU officially opened, worked as a laboratory technician in the Chemistry Department from 1964 to 1991. Tony passed away in 1991 after over 27 years of service at SFU. Dr. John Clague established the William H. Mathews Memorial Endowment supporting the Alexis Clague Award in Earth Sciences to honour Professor William H. Mathews, an inspiration for many students at UBC, including Dr. Clague.

Professor Mathews joined UBC’s Geology Department in 1951 and led it from 1964 to 1971. He passed away in 2003 and will be remembered for his work as a geologist, professional engineer and as a scholar. The award supports upper-year undergraduate students who have made positive contributions, including leadership, volunteerism and ambassadorship to SFU or the external community.

Alumnus Winston Choo and family have a long-standing relationship with SFU and established the W.B. Choo Undergraduate Bursary Endowment in honour of SFU’s 50th Anniversary year to help future generations of students be successful in their academic, professional and personal endeavours. The bursary will support students in any faculty experiencing financial need.

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FAQ Why are endowments important?

Endowments build a legacy of support that spans generations. The SFU Endowment is responsibly invested to advance, in perpetuity, the strategic vision of generous donors and the university. The annual income provides stable funding that promotes long-term planning and allows the university to recruit the best students and faculty and create outstanding programs.

What are the minimum levels to establish named endowments?

The minimum gift to establish an endowment varies depending on the type of initiative the endowment principal will support. You can designate your gift to a particular faculty or program, student awards, chairs and professorships, and many other opportunities at the university.

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

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, the payout, pro-rated based on fiscal year timing, will become available for spending.

How is the annual payout determined and distributed?

The spending allocation rate is set annually by the Board of Governors on the recommendation of the Vice-President, Finance & Administration and is reviewed every third year. As of April 1, 2015 the rate was set at 5% annually. The payout is calculated by applying the spending rate to the average monthly endowment principal account balance during the current fiscal year. An initial payout amount is made available based on the spending allocation calculated at fiscal year start, with any spending adjustments made available at fiscal year-end.

How does the endowment increase in value?

Both investment returns and additional gifts contribute to endowment growth. The university makes an annual capital addition to the endowment principal calculated as the latest calendar year percentage change in the Consumer Price Index for British Columbia times the average endowment principal account balance during the fiscal year. Ongoing gifts to the endowment principal increase the capacity of the endowment to provide annual support.

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For further information, please contact: Natalie Brenton Manager Donor Relations 778-782-5310 nbrenton@sfu.ca Kendra Pryor Manager Donor Relations 778-782-9778 pryor@sfu.ca