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