Endowment Report

Endowment

Mount Saint Vincent University’s Endowment

An endowment is a long-term investment in Mount Saint Vincent University that provides benefits primarily to students, but also to programs and faculty, year after year, generation after generation . A permanent, sustainable source of funding for MSVU, the endowment principal is invested, and each year a portion (currently 4%) of the value of the fund is paid out to support each fund’s purpose . Any earnings in excess of the distribution or “spending” build the fund’s value, growing and providing support for its designated purpose in perpetuity . Each endowment gift increases the value of the total MSVU endowment, and can be designated to support areas aligned to donors’ interests .

At March 31, 2020 MSVU’s Endowment was valued at $29,464,199 . Annual endowment reporting ties to MSVU’s fiscal year (April 1 - March 31) . For 2019-2020, the value at March 31, 2020 is reflective of the market downturn during the early part of the pandemic . Throughout the course of the year, the endowment rebounded and its value at December 31, 2020 was just over $35.7 million .

Endowment Management

Mount Saint Vincent University’s Board of Governors is entrusted with oversight of the endowment and has established the Endowment Management Policy which sets out guidelines and procedures to ensure that annual income continues at an adequate level to provide the support intended for each established fund . This policy is reviewed annually .

The Investment Committee is a standing committee of the Board of Governors . This committee’s work is guided by the University’s Investment Policy which creates a framework in which to maximize real long-term returns for MSVU’s endowments and provide for long-term growth while protecting against shorter-term fluctuations . It establishes ranges for asset mix and benchmarks for performance evaluation . The Investment Committee also reviews and recommends to the Board of Governors the selection of qualified investment managers and ensures the evaluation of the performance of the investment managers to assure adherence to policy guidelines and monitor investment objective progress . Jarislowsky Fraser Ltd . has been MSVU’s investment manager since 2004 . Recognized as one of Canada’s leading investment firms whose mission is to grow clients’ capital in a low risk manner, their conservative approach has guided MSVU’s endowment funds through the volatile markets experienced in recent years, safeguarding investments through prior and recent downturns with focus on long- term capital preservation .

A strong record of diligent oversight by MSVU’s Board of Governors through the Investment Committee and sound management by Jarislowsky Fraser Ltd . have enabled the University to not have reason to encroach on original contributed capital in endowed funds to support annual spending for 2020-21, despite negative returns at March 31, 2020 .

For 2019-20, total fees and expenses, including management as well as custodial and performance evaluation, totaled $143,998 . This represents a cost of just under 0 .5% of the endowment’s market value .

Members of the 2019-2020 Investment Committee

Tom Nicholle (Chair) Jeff Alexander Mary Bluechardt Tyrone Cotie Mary Dable Arab Kelly Gallant Anne McGuire Mustansar Nadeem Denise Green (Resource) Cathleen Madgett (Resource) Kim Campbell (Recording Secretary)

Spending Rate for 2020-2021

MSVU’s Endowment Management Policy stipulates that the spending rate will be reviewed each year and will fall between 3 .5 % and 5 .0% . The spending allocation is calculated based on the market value of the preceding four fiscal years . Despite the negative endowment returns at March 31, 2020, the Investment Committee were able to approve spending to remain at 4 .0% based on this four-year rolling average .

Endowment Returns

The following chart outlines the annualized returns ending March 31, 2020 on MSVU’s Endowment and provides details of the portfolio performance .

Endowment Fund MSVU Benchmark

1 2 3 4 5 10 Since Year Years Years Years Years Years Inception* (%) (%) (%) (%) (%) (%) (%) -2 .9 1 .7 2 .4 4 .3 3 .6 7 .4 6 .4 -3 .4 1 .3 2 .4 4 .3 3 .2 6 .4

Canadian Equity S&P/TSX -14 .4 -3 .5 -2 .3 1 .9 1 .8 5 .7 -14 .2 -3 .7 -1 .9 2 .9 0 .9 4 .1

U .S . Equity S&P 500 (C$)

International Equities MSCI EAFE (C$) - Net -3 .0 4 .8 5 .5 8 .1 7 .7 13 .5 -0 .9 6 .0 7 .4 10 .6 9 .2 14 .3

-1 .4 0 .2 3 .8 6 .9 4 .0 8 .8 -8 .8 -4 .6 0 .3 3 .8 1 .7 6 .3

Emerging Markets Fund -12 .8 -5 .3 MSCI Emerging Markets Net C$ -12 .3 -8 .3

Bonds FTSE Canada Universe 4 .1 4 .6 3 .6 3 .3 2 .8 4 .6 4 .5 4 .9 3 .7 3 .1 2 .7 4 .3

Fixed Income Core Plus Fund FTSE Canada Universe

* The Inception Date for the Fund is November 30, 2004. The start date for Emerging Markets in the account is October 16, 2017. The start date for Fixed Income Core Plus in the account is April 8, 2019.

Endowment Asset Mix

At March 31, 2020

Canadian Equity 25%

U .S . Equity 20.9%

International Equity 12.9%

Emerging Markets Equity 1.8%

Fixed 9.6%

Bonds 24.1%

Cash 5.6%

Endowment Over 10 Years (2011 – 2020)

The following chart reflects the market value of the University’s General Endowment Fund over the last 10 years at March 31st of each fiscal year end . Fund fluctuations are due to fund performance, spending allocations, and donor investment .

$19.7m $20.4m $22.1m $25.0m $27.9m $27.1m $29.1m $30.0m $31.3m $29.5m

2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20

Mount Saint Vincent University is a special place and one for which I have great affinity. As a student I was able to grow and flourish both academically and socially. Being the first in my family to attend university, my MSVU degree opened doors to opportunities in my career that I would have never dreamed possible. After graduating, I began giving back as a volunteer and a donor. For me, a gift in my Will is my MSVU legacy – closing the loop and completing the circle to give back beyond my lifetime.

A gift in your Will can help MSVU remain a small wonder where students of today and tomorrow can grow and flourish.

Gary Logan, BA ’02 (MSVUSU Vice-President External 2001-2002, MSVAA Board Member 2004-2010)

Your MSVU Legacy

For a complimentary copy of A Guide to Preparing Your Will, or further information on how you can leave a legacy, contact Anne Thibodeau at 902-457-6270 or anne.thibodeau@msvu.ca msvu.ca/giving Legacy Giving / University Relations – Advancement Advancement House Mount Saint Vincent University 166 Bedford Highway, Halifax, NS B3M 2J6

Notes of Nurture

From our Donors to our Students A good education is a valued gift, use it wisely.

Good luck with your studies, be proud of all you have accomplished. Enjoy your time at the Mount!

MSVU has given many people a great start in life, in career, in giving back to community. It gave me my first solo exhibition and so much more.

If I had not received a scholarship in 1958, I would not now be able to contribute to the program. Thank you for the education you have provided me.

I wish you every success in all you do at MSVU. I enjoyed being a student there myself many years ago. My time at the Mount helped me gain confidence and always brings back good memories. May your experience there do the same for you. Best wishes for the future.

Please know that there are many people that believe in you and support you! I am glad I am able to help you to continue your studies at MSVU. Wishing you all the best on your way to success!

There can be many obstacles to furthering one’s education, but I hope you will persevere - with financial assistance - to reach your goals.

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