Your endowed gifts continue to
inspire transformation. Jennifer Llamas Class of 2018; Horizons Scholar NCCS student since 2013
JENNIFER’S STORY “Since I don’t consider myself an outgoing person, the eighth grade storytelling unit frightened me at first. While reading the different stories, I was trying to imagine myself telling them. I realized that knowing my story wasn’t going to be an issue, but performing it without sounding monotonous and boring was going to be tough. At each practice, my nerves appeared again and again. I was scared to look ‘weird’, so I avoided much movement; however, practice after practice the fear of leaving my comfort zone slowly started diminishing. After the practices had finished, I became confident and comfortable with my story, and I actually enjoyed each performance. When the storytelling unit had ended, I was, surprisingly, sad. I learned that I can step out of my comfort zone and enjoy it.”
TEACHER’S PERSPECTIVE “It has been an absolute pleasure having Jennifer as my student this year. I foresee great success for her as she transitions into upper level honors mathematics next year.” —Jordan Alper, Upper School Math Teacher “She was a fierce competitor in meets, finished first in her division. She was a joy to both her teammates and coaches to have on the team with her positive attitude and encouragement of others.” —Martha McAndrews, Cross Country Coach “Jennifer is responsible, enthusiastic and motivated. She seriously prepared for the National French Exam and received a silver medal!” —Maria Viale, Upper School French Teacher
Endowment Report
Lauren Romeo
Language Arts Department Co-chair; Upper School Learning Resources Teacher NCCS teacher since 2006
LAUREN’S STORY
Fiscal Year 2017
“Country School is truly committed to investing in its teachers. Two years ago, thanks to our robust professional development program, I was able to attend two separate week-long institutes led by the Columbia Teachers College Reading and Writing Project (TCRWP). This think tank of more than 60 teacher-leaders has emerged as the preeminent leader in the field of literacy instruction. I was introduced to — and totally captivated by — the research, curriculum and methodologies for writing instruction during those two weeks.
JULY 1, 2016–JUNE 30, 2017
I couldn’t wait to bring what I had learned back to NCCS, and the administration was incredibly supportive. While piloting Writing Workshop in my sixth-grade homeroom over the 2016–17 school year, I witnessed the power of this innovative writing curriculum. Based on those results, we invited TCWRP facilitators to campus for comprehensive training of all Country School English teachers. This year we launched Writing Workshop in Grades K–7 classrooms. It has been inspiring to observe students sharing their stories and building their voices. I am so grateful to the school for allowing me the time and resources to pursue this professional development. Its impact has been transformative.”
635 Frogtown Road New Canaan, CT 06840 (203) 972-0771 www.countryschool.net
www.countryschool.net
Investment Philosophy The Board of Trustees of New Canaan Country School is the primary fiduciary for the Henry H. Welles Endowment Fund, “the Fund.” The Board intends to maintain the Fund in perpetuity so that future generations of students and faculty may enjoy a level of support similar to that enjoyed by current and prior generations. Therefore, the Fund must maintain its purchasing power even as it makes annual distributions to support operations. In order to accomplish the dual objectives of consistent annual support and intergenerational equity, the Fund must be invested in order to earn a long-term average return at least equaling the annual draw rate plus the rate of inflation. Annual investment returns in excess of the draw will be reinvested in the Fund. The Board delegates to the Investment Committee responsibility for establishing the Fund’s investment policy and overseeing its implementation. The Investment Committee is the center of active good governance. Perpetuating a consistent and welldocumented investment process based on sound principles is the best way to accomplish prudent Fund management and the Board’s fiduciary obligations. Because capital markets returns from an equity-oriented portfolio are highly likely to cause the Fund to meet its long-term investment objectives, success will ensue from applying a simple but rigorous investment process consistently over successive market cycles. Therefore, the Investment Committee will focus on maintaining a strong culture around the investment process to promote sustainability and accountability as individual investment committee members change over time. Careful management of the NCCS endowment assets through the evaluation of risk, reward and liquidity in the various asset classes is undertaken with the long-term goal of producing returns. This preserves and enhances the real dollar principal of the Fund over time, while providing a dependable source of funding for programs, financial aid and operations each year.
Endowment Snapshot
NCCS Endowment, for fiscal year ending June 30, 2017. Historical returns are annualized.
Investment Committee Endowment Report
The endowment returned 9.73% (net of fees). Total market value was $39,765,906.
THE TABLE BELOW SETS OUT THE HISTORICAL INVESTMENT RETURNS: Historical Investment Returns
FYE 6/30/17
3 Year
5 Year
10 Year
New Canaan Country School (net)
9.73%
2.60%
6.69%
4.24%
Custom Benchmark
8.60%
2.49%
6.92%
4.65%
18.86%
5.83%
12.01%
4.56%
-0.31%
2.48%
2.21%
4.48%
1
MSCI World
2
Barclays US Agg3
COMPOSITION OF PORTFOLIO BENCHMARKS 1 15% HFRI FOF Diversified Index 1 Month Lag, 12% Bloomberg Barclays US Aggregate Bond Index, 9% MSCI All Country World ex US Index, 8% BofA ML 1–3 Year Treasury Index, 8% Bloomberg Barclays 1–5 Year US TIPS Index, 12% S&P 500 Index, 7% MSCI World Index (Net) 1 Month Lag, 6% Russell 3000 Index, 5% MSCI World Min Volatility Hedged Index, 4% MSCI Emerging + Frontier Markets Index (Net), 3% 50/50 blend of JPMorgan EMBI Global Diversified Index and the JP Morgan GBI EM Global Diversified Index, 3% BofA ML US High Yield Constrained Index, 3% Russell 2500 Index, 2% BofA ML 3 Month US T-Bill Index, 2% Russell 3000 Index + 3% 3 month lag, 1% S&P 500 + 4% lagged 2 The MSCI World is a stock market index of 1,654 ‘world’ stocks and is used as a benchmark for ‘world’ or ‘global’ stock funds. The index includes a collection of stocks of all the developed markets in the world, as defined by MSCI. 3 The Barclays Capital U.S. Aggregate Bond Index is a benchmark for determining the relative performance of bond or fixed income portfolios. It is also a major indicator for the overall health of the fixed income investing market.
Inflation Protection 7%
Absolute Return 15%
ASSET ALLOCATIONS
Growth 56%
Risk Reduction 22%
Fiscal Year 2017 As of June 30, 2017, the value of the Henry Welles Endowment Fund totaled $39,765,906. Investment performance for fiscal 2017 was 9.73% (net of fees) which compared to 8.60% for the custom benchmark over the same period (see Table 1; note this is SEI’s custom benchmark not the historical IPS benchmark). The outperformance of the endowment relative to the custom benchmark during fiscal 2017 was attributable to investment manager relative outperformance during a strong “risk on” rally in equities and credit-oriented fixed income. U.S. Large and Small/Mid Cap Equities as well as World Equities all posted strong returns. The Fixed Income allocation performance was positive with credit sectors performing solidly. The Inflation Protection allocation continued to struggle as it had in fiscal 2016 with inflation expectations remaining muted, which negatively impacted the absolute return for this portfolio component. Over a trailing three-year period, the endowment has performed in line with the custom benchmark, recording a 2.6% annual increase in value. During the fiscal year 2017, SEI, the Outsourced Chief Investment Officer (OCIO) for New Canaan Country School, worked in conjunction with the Investment Committee to make a number of portfolio asset allocation and strategy changes. These included the implementation of the public market allocations through SEI’s passive and multi-manager institutional mutual funds. SEI also provided a comprehensive due diligence review of the existing alternative investment managers and strategies. This led to a discussion with the Investment Committee related to a portfolio repositioning that would provide additional diversification and new opportunity sets in less liquid asset classes.
Dear Carina and Pablo, It is with pleasure that I present the Calderini Family Math Fund endowment update along with the Country School Annual Report for the fiscal year ending June 30, 2017. This endowment report highlights goals, investment approach, performance and asset allocation. The Annual Report emphasizes Country School’s strength of community which remains committed to educating future leaders, confident and prepared to find success beyond NCCS. Your private support plays an increasingly important role in Country School’s fiscal health. The strongest example of the long-term power of private support is the endowed fund which continues to make an impact year after year. They are meaningful to their beneficiaries and a lasting tribute to the generosity and foresight of donors. In fiscal year 2017, Country School’s endowment returned 10.11% and totaled $39.7 million as of June 30, 2017. Over longer periods of time, the endowment’s performance reported 3-, 5- and 10-year returns of 2.71%, 6.76% and 4.27% as of June 30, 2017. The Calderini Family Math Fund helped bring to NCCS innovative new programs such as Dreambox, Bridges in Mathematics and IXL as well as the latest, most up-to-date textbook and online services for our students. It is probably not a coincidence that we have seen recent NCCS graduates consistently place in above average and honors level math classes. In addition, faculty regularly attend training sessions and conferences as well as visit peer school programs. Middle and Upper School Math Department cochair Barbara Latimer would welcome the opportunity to meet with you and share details of the current and future direction of the program. We appreciate this opportunity to report to you on our endowment investment strategy as well as depict the impact of these funds in a new format. Your thoughts are always welcome. I will call you in the next few days to discuss a visit in the near future. With deepest gratitude,
TERRY M. GUMZ Director of Advancement tgumz@countryschool.net Please see reverse for more details about your Fund.
Your Endowment Activity The Calderini Family Math Fund Established in 2010 by Carina and Pablo Calderini, this Fund supports the New Canaan Country School math program through faculty professional development and related activities.
FINANCIAL SUMMARY Opening Balance 7/1/2016 Contributions to the Fund Investment Growth Available Spending for 2016-2017
$380,215 36,254 (15,839)
Closing Balance 6/30/17
$400,630
Understanding Your Endowment DEFINITION OF AN ENDOWMENT An endowment account is established when a gift of funds is to be maintained in perpetuity. NCCS may not expend the principal but may spend the current income and a portion of the market appreciation. The principal of the NCCS endowment is invested, allowing it to grow over time. Endowment distribution is calculated as four percent of the average of the prior twelve quarter-end endowment values up to and including June 30th.
Professional Development 7% Endowment Funds 37%
WELLES ENDOWMENT BY PURPOSE
MARKET VALUE OF FUND Principal balance plus any income and market appreciation generated over time minus the draw.
(FY17)
AVAILABLE SPENDING FOR 2016–2017 Portion of the income and market appreciation that was used in accordance with the terms of the endowment.
IF YOU HAVE ANY QUESTIONS, please contact Diane Briggs, Associate Director of Advancement, 203-801-5619, or email dbriggs@countryschool.net
Financial Aid 27% Board Designated 29%
Investment Philosophy The Board of Trustees of New Canaan Country School is the primary fiduciary for the Henry H. Welles Endowment Fund, “the Fund.” The Board intends to maintain the Fund in perpetuity so that future generations of students and faculty may enjoy a level of support similar to that enjoyed by current and prior generations. Therefore, the Fund must maintain its purchasing power even as it makes annual distributions to support operations. In order to accomplish the dual objectives of consistent annual support and intergenerational equity, the Fund must be invested in order to earn a long-term average return at least equaling the annual draw rate plus the rate of inflation. Annual investment returns in excess of the draw will be reinvested in the Fund. The Board delegates to the Investment Committee responsibility for establishing the Fund’s investment policy and overseeing its implementation. The Investment Committee is the center of active good governance. Perpetuating a consistent and welldocumented investment process based on sound principles is the best way to accomplish prudent Fund management and the Board’s fiduciary obligations. Because capital markets returns from an equity-oriented portfolio are highly likely to cause the Fund to meet its long-term investment objectives, success will ensue from applying a simple but rigorous investment process consistently over successive market cycles. Therefore, the Investment Committee will focus on maintaining a strong culture around the investment process to promote sustainability and accountability as individual investment committee members change over time. Careful management of the NCCS endowment assets through the evaluation of risk, reward and liquidity in the various asset classes is undertaken with the long-term goal of producing returns. This preserves and enhances the real dollar principal of the Fund over time, while providing a dependable source of funding for programs, financial aid and operations each year.
Endowment Snapshot
NCCS Endowment, for fiscal year ending June 30, 2017. Historical returns are annualized.
Investment Committee Endowment Report
The endowment returned 9.73% (net of fees). Total market value was $39,765,906.
THE TABLE BELOW SETS OUT THE HISTORICAL INVESTMENT RETURNS: Historical Investment Returns
FYE 6/30/17
3 Year
5 Year
10 Year
New Canaan Country School (net)
9.73%
2.60%
6.69%
4.24%
Custom Benchmark
8.60%
2.49%
6.92%
4.65%
18.86%
5.83%
12.01%
4.56%
-0.31%
2.48%
2.21%
4.48%
1
MSCI World
2
Barclays US Agg3
COMPOSITION OF PORTFOLIO BENCHMARKS 1 15% HFRI FOF Diversified Index 1 Month Lag, 12% Bloomberg Barclays US Aggregate Bond Index, 9% MSCI All Country World ex US Index, 8% BofA ML 1–3 Year Treasury Index, 8% Bloomberg Barclays 1–5 Year US TIPS Index, 12% S&P 500 Index, 7% MSCI World Index (Net) 1 Month Lag, 6% Russell 3000 Index, 5% MSCI World Min Volatility Hedged Index, 4% MSCI Emerging + Frontier Markets Index (Net), 3% 50/50 blend of JPMorgan EMBI Global Diversified Index and the JP Morgan GBI EM Global Diversified Index, 3% BofA ML US High Yield Constrained Index, 3% Russell 2500 Index, 2% BofA ML 3 Month US T-Bill Index, 2% Russell 3000 Index + 3% 3 month lag, 1% S&P 500 + 4% lagged 2 The MSCI World is a stock market index of 1,654 ‘world’ stocks and is used as a benchmark for ‘world’ or ‘global’ stock funds. The index includes a collection of stocks of all the developed markets in the world, as defined by MSCI. 3 The Barclays Capital U.S. Aggregate Bond Index is a benchmark for determining the relative performance of bond or fixed income portfolios. It is also a major indicator for the overall health of the fixed income investing market.
Inflation Protection 7%
Absolute Return 15%
ASSET ALLOCATIONS
Growth 56%
Risk Reduction 22%
Fiscal Year 2017 As of June 30, 2017, the value of the Henry Welles Endowment Fund totaled $39,765,906. Investment performance for fiscal 2017 was 9.73% (net of fees) which compared to 8.60% for the custom benchmark over the same period (see Table 1; note this is SEI’s custom benchmark not the historical IPS benchmark). The outperformance of the endowment relative to the custom benchmark during fiscal 2017 was attributable to investment manager relative outperformance during a strong “risk on” rally in equities and credit-oriented fixed income. U.S. Large and Small/Mid Cap Equities as well as World Equities all posted strong returns. The Fixed Income allocation performance was positive with credit sectors performing solidly. The Inflation Protection allocation continued to struggle as it had in fiscal 2016 with inflation expectations remaining muted, which negatively impacted the absolute return for this portfolio component. Over a trailing three-year period, the endowment has performed in line with the custom benchmark, recording a 2.6% annual increase in value. During the fiscal year 2017, SEI, the Outsourced Chief Investment Officer (OCIO) for New Canaan Country School, worked in conjunction with the Investment Committee to make a number of portfolio asset allocation and strategy changes. These included the implementation of the public market allocations through SEI’s passive and multi-manager institutional mutual funds. SEI also provided a comprehensive due diligence review of the existing alternative investment managers and strategies. This led to a discussion with the Investment Committee related to a portfolio repositioning that would provide additional diversification and new opportunity sets in less liquid asset classes.
Your endowed gifts continue to
inspire transformation. Jennifer Llamas Class of 2018; Horizons Scholar NCCS student since 2013
JENNIFER’S STORY “Since I don’t consider myself an outgoing person, the eighth grade storytelling unit frightened me at first. While reading the different stories, I was trying to imagine myself telling them. I realized that knowing my story wasn’t going to be an issue, but performing it without sounding monotonous and boring was going to be tough. At each practice, my nerves appeared again and again. I was scared to look ‘weird’, so I avoided much movement; however, practice after practice the fear of leaving my comfort zone slowly started diminishing. After the practices had finished, I became confident and comfortable with my story, and I actually enjoyed each performance. When the storytelling unit had ended, I was, surprisingly, sad. I learned that I can step out of my comfort zone and enjoy it.”
TEACHER’S PERSPECTIVE “It has been an absolute pleasure having Jennifer as my student this year. I foresee great success for her as she transitions into upper level honors mathematics next year.” —Jordan Alper, Upper School Math Teacher “She was a fierce competitor in meets, finished first in her division. She was a joy to both her teammates and coaches to have on the team with her positive attitude and encouragement of others.” —Martha McAndrews, Cross Country Coach “Jennifer is responsible, enthusiastic and motivated. She seriously prepared for the National French Exam and received a silver medal!” —Maria Viale, Upper School French Teacher
Endowment Report
Lauren Romeo
Language Arts Department Co-chair; Upper School Learning Resources Teacher NCCS teacher since 2006
LAUREN’S STORY
Fiscal Year 2017
“Country School is truly committed to investing in its teachers. Two years ago, thanks to our robust professional development program, I was able to attend two separate week-long institutes led by the Columbia Teachers College Reading and Writing Project (TCRWP). This think tank of more than 60 teacher-leaders has emerged as the preeminent leader in the field of literacy instruction. I was introduced to — and totally captivated by — the research, curriculum and methodologies for writing instruction during those two weeks.
JULY 1, 2016–JUNE 30, 2017
I couldn’t wait to bring what I had learned back to NCCS, and the administration was incredibly supportive. While piloting Writing Workshop in my sixth-grade homeroom over the 2016–17 school year, I witnessed the power of this innovative writing curriculum. Based on those results, we invited TCWRP facilitators to campus for comprehensive training of all Country School English teachers. This year we launched Writing Workshop in Grades K–7 classrooms. It has been inspiring to observe students sharing their stories and building their voices. I am so grateful to the school for allowing me the time and resources to pursue this professional development. Its impact has been transformative.”
635 Frogtown Road New Canaan, CT 06840 (203) 972-0771 www.countryschool.net
www.countryschool.net