URIF endowment report fy 2017

ENDOWMENT REPORT x JULY 2017 YOUR INVESTMENT IN THE UNIVERSITY OF RHODE ISLAND’S FUTURE

THIS REPORT WAS PREPARED BY THE URI FOUNDATION TO PROVIDE AN OVERVIEW OF THE INVESTMENT PERFORMANCE AND IMPACT OF URI’S ENDOWMENT

URI ENDOWMENT PERFORMA

$21.4 MILLION

raised by URI in FY 2017

12,220 TOTAL DONORS

supported URI

3,026 FIRST TIME DONORS

T

he URI Foundation secures and encourages charitable giving from our alumni, parents, corporations and foundations, friends, and others on behalf of the University of Rhode Island. Many of these donations are endowment gifts, which are invested as part of the University’s overall Endowment Fund. Endowed gifts help ensure a legacy of support for URI students, faculty and programs over generations.

The primary objective of the Endowment is to support the long-term needs of the University by maintaining a strong and healthy Endowment, achieved by growing the inflationadjusted value of the assets over time by investing a portion of the endowment’s earnings and appreciation back into the Fund each year.

This principal growth, coupled with new gifts to the Endowment each year, is intended to help offset the negative implications of rising inflation and dips in the business cycle

made a gift to the University of Rhode Island

58% OF ALL GIFTS

received were from alumni

44% OF ALL GIFTS

received were endowed gifts

52%

OF ENDOWED GIFTS

funded student scholarships and awards

THE IMPACT OF YO Andy Chen, a Pharm. D. student and scholarship recipient, looks forward to a career that will allow him to help treat, mitigate, and prevent health issues in the community. This first-generation college student plans to specialize in hematology/ oncology and he encourages incoming students to “get involved and think big.”

Julia Lawson, a fine arts major, strives to create paintings that always reveal something new to the viewer. Receiving a scholarship award was an honor that has motivated her to create and accomplish more. She calls URI “the greatest opportunity I’ve had in my life.”

Your gifts to URI impact students like Julia by supporting their dreams and aspirations.

Figures provided are for fiscal year 2017 unless otherwise noted.

ANCE AND ACTIVITY REPORT over time. The University’s Endowment is intended to provide long-term stability and support and helps offset variations in state appropriations, currently at 10 percent, supporting Rhode Island’s flagship institution for higher education.

The University Endowment is made up of a pool of over 1,100 individual endowment funds, each established with a donor-specified purpose, and each prudently invested in order to preserve its principal value over time. A portion of earnings generated is distributed annually to make a meaningful impact for this and future generations of students.

Endowments are the cornerstone of any great university.

The impact of the URI Endowment is felt far and wide across all of URI’s campuses, colleges and beyond. The generosity of our Endowment donors is highly valued and your commitment to furthering the state’s flagship research institution is appreciated beyond measure.

$128.8 MILLION

value of endowment on 6/30/17

$3.8 MILLION

annual endowment payout

1,131 ENDOWED FUNDS

created by the URI Foundation

OUR GIFTS TO URI Tala Mughrabi, a nutrition and dietetics major, moved from Damascus, Syria, to the United States at 17. Every dollar was precious to her family and Tala was grateful to have received several scholarships. She truly appreciates every opportunity that came her way as a student and calls her time at URI “an unforgettable journey.”

Steve O’Brien, an International Engineering Program student and member of the URI men’s crew team, celebrated a nearly unprecedented season that included a Head of the Charles win, as well as one New England title and two national titles. Private support for the crew team helps make Steve’s URI experience a winning one.

Thank you!

847

ENDOWED FUNDS

supporting scholarships

1,990 SCHOLARSHIPS

were awarded to students by the URI Foundation

75%

OF ALL URI STUDENTS

received some form of financial aid (federal, state, private)

ANNUAL ENDOWMENT PAYOUT

ASSET ALLOCATION

The following graph represents the total amount of endowment-generated funds distributed to URI each fiscal year, based on the Foundation’s spending policy, for use over five academic years. $5.0

6.7%

PRIVATE INVESTMENTS

CASH AND EQUIVALENTS

6.7%

IN MILLIONS

$4.0

3.4

$3.0

2.9

$2.0

0.8%

3.7

3.8

3.7

25.9%

REAL ASSETS

U.S. EQUITY

10.4% EMERGING MARKETS

$1.0

13.5%

$0 2014

2015

2016

2017

2018

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

DEVELOPED EX-U.S. EQUITY

As of June 30, 2017, the University of Rhode Island’s endowment portfolio had a market value of $128.8 million. The market value for each of the past five years is represented below.

IN MILLIONS

$125 $100

119

118

2014

2015

103

129 108

$75 $50 $25 $0 2013

2016

2017

ANNUALIZED RETURN ON INVESTMENT The annualized return on URI’s general endowment portfolio, as of June 30, 2017, was 13.5%. The returns for the past five years, using the June 30 date for comparison, are as shown below.

INCREASE/DECREASE AS OF JUNE 30

11.3%

2013

14.9%

2014

-0.3%

2015

-5.0%

2016

2017

FIXED INCOME

17.6% MARKETABLE ALTERNATIVES

PORTFOLIO VALUE

$150

18.4%

13.5%

THE INVESTMENT OF URI’S ENDOWMENT

URIF Spending Policy: The current endowment spending rate that will be applied to the fiscal year 2018 for use in the 2017–2018 academic year is 4.79 percent, which contains both the University distribution and the Foundation’s management fee. For the fiscal year 2018, the payout to the University equals 3.3 percent of the 12 quarter rolling average of the endowment market value as of December 31, 2016.

The management fee is 1.49 percent. The dollar value of the payout to the University to support donor purpose this year will be $3.79 million.

A complete listing of endowed funds can be found on the URI Foundation website at www.urifoundation.org/endowmentfunds.

If you have any questions about your fund or the endowment in general, please contact Adam Quinlan, Chief Financial Officer, at 401.874.4490 or aquinlan@uri.edu.

79 UPPER COLLEGE ROAD, KINGSTON, RI 02881-2023 401.874.7900 | foundation@uri.edu | www.urifoundation.org