FISCAL YEAR 2019
ENDOWMENT FINANCIAL REPORT
A Message from the Vice President Dear Friends, Your philanthropy to Furman is the cornerstone for our success as a top liberal arts and sciences university. And what success we are having! We’ve celebrated many accomplishments during the past year, both in the classroom and on the playing fields. First and foremost, we climbed to No. 46 (among 229 schools) on U.S. News & World Report’s rankings of best “National Liberal Arts Colleges.” In June, the Furman Office for Innovation and Entrepreneurship held its first Summer Business and Entrepreneurship Boot Camp, designed for aspiring entrepreneurs who are non-business majors. In addition, many Furman faculty and students were acknowledged for their great work, including Associate Professor of Chemistry Mary Elizabeth (“Beth”) Anderson, who was one of only eight professors in the nation to receive the 2019 Henry Dreyfus Teacher-Scholar Award, and Skylar Lambert ’19, who won the undergraduate presentation award at the 2019 International Behavioral Neuroscience Society conference in Cairns, Australia. We are also commemorating several milestones throughout the year, including the 10th anniversary of the Shi Center, 20th anniversary of the Riley Institute, 50 years of study away at Furman and the 100th anniversary of Furman’s Department of Education. In athletics, Paladin football returned to the FCS playoffs, men’s soccer won their 20th Southern Conference regular season title, women’s soccer shared the SoCon regular season title, and seniors Savannah Carnahan, Gabbi Jennings and Ryan Adams earned cross country All-American citations. In addition, both basketball teams are off to exciting starts to their seasons — a season with several games in downtown Greenville at the Bon Secours Wellness Arena. I join you in being so proud of these accomplishments – and countless other welldeserved recognitions – earned by our students, faculty and the collective Furman community. Every gift from every donor enhances the lifelong value of a Furman education and provides the resources needed for the university to reach its highest aspirations. From scholarships to endowed professorships, departmental initiatives to student internships, study away programs to collaborative research — the impact of your generosity is evident in every aspect of Furman. As we work together to move the university forward, we are deeply grateful for our alumni, parents, faculty, staff and students, and especially appreciative of the gifts you make of yourselves and your philanthropy. Thank you for your loyalty, your support and your inspiration.
Warmly,
Heidi Hansen McCrory Vice President for Development
“They say it takes a village to raise a child, and I’m happy to say you are now a part of my story. You have been kind enough to believe in me and allow me to go to a wonderful university like Furman. Thank you for supporting me financially through my college journey and for helping my dreams come true!” — Victoria Melin ’20
“Through my experiences at Furman, I have learned so much about others, myself and my place in the surrounding world. The people and experiences here have shaped me as a human being, and Furman has shaped me as a person. I cannot thank you enough for making that possible.” — Sarah Feingold ’21
“Your generosity has made it possible for myself and many others to attend this gorgeous campus to pursue our dreams. People say Furman is one of the most beautiful campuses, but what really makes it beautiful is the wonderful people like you in our Furman community.” — McCrae Sanders ’21
“Donors like you allow the dream of coming to Furman become a reality, and I am extremely grateful. Your investment in students like me scatters seeds which are cultivated through all the amazing opportunities Furman provides.” — Joshua Butler ’21
“Because of my time at Furman, I feel prepared to face whatever challenges may arise and am excited to begin the next chapter of life. I am incredibly grateful for all that you have done and cannot express in words how meaningful your contributions truly are.” — Katie Laguardia ’19
ENDOWMENT OVERVIEW T
he Furman University endowment provides a critical source of revenue which supports the operations and programs of the university. As of June 30, 2019, Furman’s total endowment was valued at $694 million, of which $522 million was invested in the endowment pool (the portion under the decision-making authority of the university). The remainder of the endowment is separately invested or managed by other entities.
During the 2018-19 fiscal year, approximately $37.2 million was distributed from the total endowment. These monies contribute approximately 23.2% to the university’s annual budget.
Endowment Pool and Total Endowment $800M
NEW ENDOWMENT GIFTS during FY19
$600M $400M $200M 0 FY09
$14.1M
FY10
FY11
FY12
FY13
FY14
Total Endowment
FY15
FY16
FY17
FY18
FY19
Endowment Pool
$37.2M TOTAL DISTRIBUTION during FY19
Professorships 8%
Scholarships 40%
Unrestricted budget support 16%
Facilities, operation, maintenance, improvement 15%
Departmental, library, programs, other 21%
Endowment Distribution
Management and Asset Allocation The Furman University Investment Office is charged with managing asset allocation, implementing specific investment strategies, and selecting and subsequently monitoring external money managers. The office collaborates with the Furman University Board of Trustees’ investment committee, the university’s vice president for finance and administration, the associate vice president for finance, a financial services controller and external consultants to preserve and enhance the purchasing power of the endowment and support the current and future operations of Furman.
Cash 0.7%
The university has adopted an investment strategy that emphasizes the prudent management of risk, while working to generate long-term total return. To achieve this goal, investments are diversified across a broad variety of asset classes – a strategy that, historically, has been shown to mitigate risk while enhancing portfolio performance. The investment office and associated entities are focused on the responsible stewardship and investment of philanthropic gifts. The endowment’s purchasing power is supported by rigorous monitoring and review of investments, which aims to ensure that each gift invested in the endowment may continue to transform the university for years to come.
International equities 23.3%
Fixed income 9.4%
Hedged strategies 19.6%
Real assets/ Natural resources 11.2%
Private equity/Venture 15.3% U.S. equities 20.5%
Asset Allocation
Sources of Income The endowment comprises approximately 23.2% of the university’s annual budget. The overwhelming majority (63.5%) is generated from tuition, room, board and other student fees. Not only do endowed funds enhance the Furman experience for current and future students, but they also enable the university to reduce the pace of potential tuition increases.
Private gifts and grants 6.6% Net tuition, fees, room and board 63.5%
Endowment 23.2%
Other 6.8%
Performance Given market cycles and the perpetual time horizon, it is also appropriate to view endowment performance over a longer period. In the figure below, Furman’s endowment pool return, as of June 30, 2019, is compared to a globally diversified 70% stocks/30% bonds portfolio and the Furman University Policy index. Furman’s annualized returns for the three-year, fiveyear and 10-year periods are 8.4%, 4.8% and 8.8%, respectively. Over fiscal year 2019, global capital markets entered periods of heightened volatility caused by geopolitical concerns (trade war fears) and central bank positioning (sell off in late 2018). Generally, U.S. markets outperformed those domiciled overseas. As of October 31, 2019, the endowment portfolio had returned nearly 10% calendar year-to-date. In addition to this comprehensive report from the Investment Office, you will find statements charting the progress of your individualized fund(s) summarizing the 2019 fiscal year. The reports include beginning and ending market values, investment performance figures and the amount allocated to uses of the monies from your fund(s) labeled “spending distribution.”
10% 9% 8% 7% 6% 5% 4% 3% 2% 1% 0 3 years Furman pool
5 years Global (70% stocks/30% bonds)
10 years Furman policy index
LEARN MORE
For a more detailed look at Furman’s endowment investment information, including policies and historical data, please visit furman.edu/endowment. Please contact the Furman University Office of Donor Relations with any questions or comments you may have at donorrelations@furman.edu or by calling Nancy Liebezeit at 864.294.2173 or Rebecca Bilott at 864.294.3704.
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Greenville, South Carolina 29613