15 minute read
HERITAGE
“MOM, I NEED A SKI SWEATER.”
That’s what Tau Mu Tau sister Barb Raitz-Gaugert ’65 said when she heard the news that she had been nominated by fraternity Alpha Kappa Psi for the roll of Frost Queen. The Queen reigned over a winter weekend designed to give students a muchneeded break from academic pressures: dances, live music, winter sports, and a talent show.
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Her mother quickly came through. Then, in sweaters, Raitz-Gaugert and eight other nominees waited in the cafeteria to fi nd out who would be the next queen. A student dressed as Jack Frost delivered the news by bestowing upon Raitz-Gaugert a royal bouquet and a shining silver crown, complete with fur bonnet.
Despite an ironic case of the cold that weekend, she proved herself deserving of the crown, even scoring the winning goal in a game of broomball. Other royal duties included presiding over a post-coronation dance in the Union and a queen’s reception in Rundstrom Hall. It all provided a sense of community when students needed it most. “The winter can get a little down and dreary and cold, and the weekend brought people out in spite of that.”
“Oh, it was a surprise, and it was defi nitely an honor,” says Queen
Barb Raitz-Gaugert
’65 today from her home in Phoenix, Ariz, where there is little to no need for governance over frosty weekends.
WHAT WAS FROST WEEKEND? It fi rst appeared in 1949, with a breakfast of “Flap-jacks, fried and served by some of your favorite campus characters,” organizer Arlene (Nelson) Donaldson ’50 told the Gustavian Weekly. It was followed by ski jumps, toboggan races, and a hockey match between faculty and students, among other activities. Save for a short resurgence in 2012 and 2013, the tradition seems to have ended in 1988. It went out with a bang—with a viewing of the movie Top Gun followed by a Tom Cruise and Kelly McGillis lookalike contest. Belated congrats to Phil Maurer ’91 and Laura (Bonkoski) Nixon ’90 on their uncanny resemblances.
Endowment
Even in the darkest months of the pandemic, Gustavus boasted ON THE Rise bright successes. One of these was the growth of the College’s ccording to a national survey of endowment. college and university endowments, several schools in Minnesota saw a drop in their endowments during 2019–2020. Yet the growth of the Gustavus endowment during this time more than o set the annual draw. So, while other schools saw the value of their endowments shrink, Gustavus fi nished with a gain, surpassing $200 million in market value in June 2020. Since then, the line on the endowment graph has shot up. At the midpoint of this year, the value of the Gustavus endowment passed $270 million—an all-time high.
This phenomenal increase is due to a combination of factors. First is the generosity of Gustavus alumni, friends, and families. Donors directed a large part of those gifts to the endowment.
The second factor driving the endowment’s growth is smart investing. The endowment functions somewhat like your retirement account. You make contributions over the years and entrust those savings to fund managers or financial advisors, with the aim of building your nest egg. Gustavus has benefited from savvy alumni who manage endowment investments. In terms of annual returns, the College’s endowment consistently outperforms its peers.
What does the endowment do?
Your retirement account is a good analogy for understanding how the endowment ensures a stable financial future for Gustavus. Money is being invested for use decades from now. At the same time, the College is drawing from the endowment for current needs. In consultation with the Board of Trustees, President Bergman and the cabinet draw somewhere between 4.5 and 5 percent from the endowment each year. In 2020, the draw amounted to $8.6 million.
Here is where the retirement-account analogy stops. When you withdraw money from your IRA, you spend the money wherever you want. College endowments don’t work that way. The endowment is made up of numerous funds established by different donors for different purposes. It would be as if your IRA was divided into accounts for groceries, utilities, and so forth, and you had to spend the money only for those purposes. Part of the endowment can be used for the College’s general expenses, but most funds are restricted to a specific purpose.
Just as utility bills and groceries are good uses of your savings, so are the purposes of restricted funds. Right now, endowment funds are paying for scholarships, endowed professorships, student research fellowships, equipment for science labs, databases for the library, and travel for sports teams and music ensembles. The more the endowment grows, the greater the amount of the draw. The greater the draw, the more that can be used for these immediate needs.
Gustavus is already acclaimed for its academic programs and high-quality student experience. “Compared to schools with larger endowments,” President Bergman has said, “Gustavus offers a lot.” Think of how much more Gustavus could offer with an endowment of $400 million. Or $500 million––with an annual draw of more than $20 million.
Endowed scholarships bring talented students to campus. Endowed professorships put talented teachers in the classroom. Endowed program funds make sure they have resources they need for an exceptional learning and research experience. This is what we all want for Gustavus today. This is what we all hope for the Gustavus of tomorrow. This is what the endowment provides.
$300,000,000
$280,000,000
$260,000,000
$240,000,000
$220,000,000
$200,000,000
$180,000,000
$160,000,000
$140,000,000
$120,000,000
$100,000,000
$80,000,000
$60,000,000
$40,000,000 $20,000,000
HISTORICAL ENDOWMENT VALUES
MAY 31, 2010–AUGUST 31, 2021
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 May 2020 May 2021 May 2021 Aug
ENDOWMENT SPENDING
FOR FISCAL YEAR 2020
Other Restricted Purposes
(including departmental support and student-faculty research) $1.5 million
Library Support $.3 million
Endowed Chairs and Faculty Salary Support $1.2 million
$8.6
Million
Scholarships and Financial Aid $3.0 million
Unrestricted Budget Support $2.6 million
WHY WE GIVE: Joanell Sletta Dyrstad ’64 and Marv Dyrstad
“THE MISSION IS TO GIVE YOUNG PEOPLE A HIGH-QUALITY EDUCATION, AND THE COLLEGE DOES THAT.”
JD: I grew up in St. James and went to Augustana Lutheran Church. Every fall, our Lutheran League youth group went to Gustavus. I fell in love with the College during those visits. Gustavus was the only school I applied to. Fortunately, I got in.
MD: We bought the Corner Drug in Red Wing in 1968, and later consolidated two other drug stores. Along with being a practicing pharmacist, I was a student preceptor for internship rotations for the College of Pharmacy. Over the years, we taught a significant number of students. Eventually, I served as president of the Minnesota Pharmacists Association and the APhA Foundation.
JD: Marv and I were both involved with a number of organizations; I served nine years on the Gustavus Board of Trustees, and I’m currently on the Executive Council of the Minnesota Historical Society.
Marv and I were always being invited to serve in some role or another. We would discuss how the opportunity would affect the family and the business, but then we supported each other’s activities. I like to tell the story of when I was at a National League of Cities conference, when I was mayor of Red Wing, and Arne Carlson called to invite me to be his running mate in the governor’s race. I called home, and our daughter answered. She was in high school at the time. I told her what Arne had said. Right away she said, “Go for it, Mom!”
MD: In serving as a board member, we try to get a feeling for whether that organization is truly doing what it professes. Is it following its mission? Gustavus does this well.
The two met when they were in college and working at Joanell’s uncle’s pharmacy. When Joanell walked in the first day, Marv said to her uncle, “Holy smokes! You didn’t tell me she was that cute.” Family set the example for service and giving. “Our parents were ordinary, hard-working, middle-class Americans,” Joanell says. “They helped others simply because that’s part of what you do.”
JD: For me, giving to Gustavus is personally important. I am thankful for the wonderful experience I had there, for the wonderful opportunities. I am thankful for the education I received and the friendships that developed. Still today, I have a strong group of Gustavus friends who continue to get together. I feel strongly about what the College is doing today to educate young people.
I fell in love with the College years and years ago. And I still love Gustavus.
GUSTAVUS INVESTMENT COMMITTEE CHAIR MARCIA PAGE ’82 ON HOW THE COMMITTEE OF DEDICATED ALUMNI (AND SOME STUDENTS) HAVE GROWN THE ENDOWMENT WITH SOUND VALUES, SMART INVESTING, AND GOOD BUSINESS.
How does the Investment Committee oversee the endowment?
MP: The Committee operates as a fiduciary, which means we have ethical and legal responsibilities to manage the endowment’s interests ahead of our own. It’s a very high standard, and the committee takes it very seriously.
The Board of Trustees is ultimately responsible for the endowment. The Investment Committee has latitude to hire managers who manage the actual investing. It’s very important that the Committee members have experience across different asset types, so that we can assess the quality of these potential managers. The Committee gives our chosen managers specific mandates depending on their investing expertise.
What guides your decision-making in overseeing these managers?
MP: First of all, the Committee is guided by the endowment’s basic purpose to provide annual income to the College, between 4.5 to 5 percent of its underlying value. These are critical dollars that fund scholarships and support the overall budget.
Roughly 60 percent of the portfolio is in liquid strategies, mostly in equities, both domestic and international. There is also a portion dedicated to conservative fixed-income strategies, like US Treasuries and high-quality bonds. If the equity markets have a tough time, those fixed income investments provide a hedge. Plus, we are able to access those dollars in the event of a crisis.
The other 40 percent of the portfolio is allocated to private strategies: a combination of venture capital, buy-out strategies, and growth-equity strategies. There are also some conservative, fixedincome investments, as well as real estate.
Does private equity bring greater risk?
MP: Private equity has certain advantages that you don’t get in publicly traded equities. The investor generally has more agency and decision-making rights in how the underlying business is being operated. What you give up is liquidity. We can’t call up and ask for our money back the next day.
Because of the unique nature of this capital, there is an opportunity for what we in the investment business call “alpha”––returns that exceed the general markets. Overall, if you have a long-term time horizon like the endowment, private equity is an excellent investment option.
So managing the endowment is a unique challenge: you’re aiming for both long-term gains and immediate income.
MP: Absolutely. When constructed thoughtfully, this is achievable. And here I have to give a call-out to the Committee members. They’re all Gusties with decades of experience in various investing areas. They make my job look easy.
This past year was a real test of the Committee’s strategy.
MP: What the Committee did was stay the course and continue to invest. On the liquid side of the portfolio, the Treasury securities performed beautifully, just like we planned. Early in the pandemic, we sold some of those Treasuries to have a cash cushion until we saw how the College would fare.
And look where we are now.
Students and alumni at some schools have called for divestment from certain companies. How does the Committee ensure that the College’s investments reflect the College’s values?
MP: One of the biggest trends over the last two years has been an emphasis on ESG matters––Environmental, Social, and Governance. Our consultants evaluate potential investment managers in regard to ESG. The Committee also uses these criteria when we assess new managers, and as we monitor their work.
This attention to ESG has broadened how markets think about responsible investing. It’s good for investors because we can influence how managers make investment decisions. And it’s good business.
The endowment is at the doorstep of $300 million—driven by the performance of the markets over the last 12 months, as well as a combination of donor gifts and a focus on equity strategies, both publicly-traded and private.”
—Marcia Page ’82
The investment committee also includes student members.
MP: This was the brainchild of professor Kathy Lund Dean. Two or three students go through a rigorous application process, and they sign a non-disclosure agreement. Then we put them to work. Last year, students combed through the portfolios of each of our managers to find out where the real engines of our returns have been.
Tell us about your new initiative, MPowered Capital.
MP: When I retired in 2015, after having co-founded Värde Partners with George Hicks ’75 and Greg McMillan, built that business, and raised a family, I looked around and said, “Where are the women? Where is the diverse talent?” Less than 5 percent of global assets are allocated to women and underrepresented talent. MPowered Capital was founded to commit capital to diverse and underrepresented talent in the investment business. This new venture ties in with my personal commitment––and the commitment of the Gustavus Investment Committee—to diversity, equity, inclusion, and sustainability at the College.
This too is great business. This is all opportunity.
ABOUT THE INVESTMENT COMMITTEE AND STRATEGY
The Investment Committee of Gustavus Adolphus College is comprised of talented individuals with outstanding business and investment experience. The Committee, along with the assistance of an outside consultant, reviews the Investment Policy Statement, sets the overall asset allocation, and monitors investment performance on a quarterly basis. The intentional philosophy of the Committee is to maintain a highly diversified portfolio in order to reduce the volatility of the total endowment fund.
GUSTIES
Gusties Are Shining
For the past six years, it’s been my privilege to serve on the Gustavus Alumni Association Board of Directors and, in that role, to get a closer look at the incredible efforts to provide an exemplary education for Gustavus students. Despite the challenges facing higher education today, the College—and you—are showing the world that Gusties do indeed shine.
The Gustavus Alumni Association’s mission is to engage current and future alumni (all 28,000 of us!) in lifelong relationships with Gustavus and with each other. I could not be prouder of how so many of us have deepened those relationships over the past several years. A few examples include:
➔ More than 800 alumni have referred students through the
Alumni Referral Scholarship program since 2016 ➔ A greater percentage of alumni give gifts today compared to five years ago; events like Give to Gustavus Day invite record numbers of contributions from around the world ➔ This year, 400+ Gustie mentors will offer valuable career support and advice for students, a nearly 50 percent increase over the past five years ➔ The revamped (and super fun!) Reunion Weekend has helped renew thousands of Gustie relationships since 2017 ➔ Record numbers of volunteers serve as Class Officers,
Chapter, Officers, and in other roles to keep classmates and fellow alums connected
On behalf of the Board, please accept our gratitude for your generous support that allows Gustavus to thrive. Let's continue to lean into the vision for the Gustavus Alumni Association: that members play a vital role in strengthening the Gustavus community, serve as ambassadors of the College, and are champions for all Gusties.
Go Gusties!
—Mike Bussey ’69
INCREASED ALUMNI CONNECTEDNESS AND SATISFACTION
How have things changed? Reflections from the 2016 and 2021 Alumni Surveys Overall, how connected did you feel to Gustavus while you were a student?
93%
83%
2016
2021 moderately or highly connected
7% 17%
2016
2021 slightly or not at all
37% 44% 63% 56%
2016
2021 moderately or highly connected
2016
2021 slightly or not at all
14%
increase in satisfaction with the Gustavus alumni experience from 2016 to 2021
Michael Bussey ’69, (president) senior consultant, Donor by Design Group, LLC J. C. Anderson ’82, (vice president) partner/ attorney, Lathrop GPM Esther Mulder Widmalm-Delphonse ’08, (secretary) attorney, labor law,
United States Department of Labor Jessica Martinez ’15, (treasurer) Academic
Dean for Grade 9, assistant to the principal, Cristo Rey Jesuit High School Rick Barbari ’91, head of IT economics,
US Bank Melinda Moen Batz ’86, business manager/ partner, Good Leadership Enterprises Mark Bergman ’79, president and owner,
Bercom International, LLC Mary Booker ’91, executive director, student financial services, University of
Delaware, Newark Sarah Schueffner Borgendale ’06, managerrecruiting, inclusion and diversity,
Fredrikson and Byron, P.A. Jen Brandenburg ’02, pharmacist Torin Dougherty ’16, solution architect,
Minnesota Mining & Manufacturing Bruce Ensrud ’90, senior financial consultant,
Parable Wealth Partners Alissa Fahrenz Rowley ’13, analyst,
Excelsior Energy Capital Rebecca Wold Freeman ’98, associate pastor,
Mount Olivet Lutheran Church Amy Zenk James ’94, sales and outreach director, Meadow Woods Assisted Living Jillian Hiscock ’05, director of college and career success, Genesys Works
Twin Cities Todd Krough ’85, senior investment officer,
Tealwood Asset Management Bill Laumann ’66, retired schoolteacher/ librarian, Albert Lea ISD #241 Katherine Medbery-Oleson ’02, professor, speech communications, Bellevue
Community College John Moorhead ’68, retired co-owner,
Lindskoog Florist Craig Nelson ’70, retired, teacher on special assignment, LeSueur/Henderson ISD Jace Riggin ’16, assistant director of admissions, Macalester College Deb Johnson Rosenberg ’79, director of retirement plan consulting, Stiles
Financial Services, Inc. Mary Anderson Rothfusz ’83, retired attorney Mark Scharmer ’77, retired executive vice president, insurance operations,
Federated Mutual Insurance Company Marcia Stephens ’73, retired financial advisor Matt Swenson ’06, director of CEO communications, Cargill, Inc. April Valentine ’92, assistant director for immigration, Purdue University Calumet
CLASS NEWS and information to be included in the Alumni section of the
Quarterly should be sent to: Office of Alumni and Parent Engagement, Gustavus Adolphus College, 800 West College Avenue, Saint Peter, MN 56082-1498
