ENDOWMENT REPORT2017-2018
Dear Trinity friends and supporters,
W
e are pleased to report another year of positive results for the Trinity endowment. In fiscal year 2018, we achieved an 8.3 percent annual return in our Long-Term Investment Pool. Our focus on campus this past fiscal year has been strengthening the Trinity journey. It’s a journey steeped in a liberal arts tradition and student experience that encapsulates the entire Trinity network, including donors, Trustees, alumni, faculty, staff, parents, and students. Endowed funds, strengthened by philanthropy and long-term stewardship, are inextricably connected to the Trinity journey. These financial resources provide continual and growing support across many of the University’s most important foundational elements. From scholarships and academic programs to general underwriting of strategic University pursuits, the endowment’s support—your support—reaches throughout campus and touches every part of the Trinity journey. The University’s commitment to providing education to the best and brightest students continues to be the cornerstone of our mission. While the endowment’s reach is broad and its impact significant, distributions do not cover all of Trinity’s needs that exist today; as an example, endowed scholarship funds covered 17 percent of Trinity’s $58 million financial aid budget in fiscal year 2018. As the landscape of higher education continues to evolve, we must remain vigilant in advancing the University’s mission to provide affordable access to current and future Tiger leaders and pave the pathway to an ever-improving future. The Trinity journey is one that exists in perpetuity— it has involved generations over the last 150 years and
will extend to future generations. As heirs of the past and stewards of the future, the principle of maintaining intergenerational equity—balancing the needs and support of our current and future scholars—is at the heart of achieving the University’s vision of redefining liberal arts education for the 21st century. The perpetual timeline and principle of intergenerational equity are defining characteristics in the management of the endowment’s resources and ensures your generosity continues to serve future generations of Trinitonians. Trinity aims to create a permanent and growing legacy of financial support, which preserves the rich history of this institution and continues to write the narrative of Trinity’s tomorrow. Thank you for taking time to read our second annual endowment report, and we hope you find its contents meaningful. We are deeply grateful to each of you for your dedication, participation, and contribution in strengthening the Trinity journey.
Gary Logan Vice President for Finance and Administration
Michael Bacon ’89 Vice President for Alumni Relations and Development
T R INI T Y U N I V E R SI T Y E N D OWM E N T
At-A-Glance 2017-18
$1.24 billion Value of endowment
34%
Portion of Trinity’s operating budget that the endowment supported
$47 million
Distribution to Trinity’s operating budget
$6 million
New gifts made to the endowment
4.5%
Endowment spending policy rate
585
Number of individual funds that made up the endowment* Figures above as of May 31, 2018
+8.3%
1-year annual return* (2017-18)
+6.6%
10-year annualized return*
*Long-Term Investment Pool, net of fees. Figures as of June 30, 2018
Trinity University’s Endowment Portfolio Overview The endowment grew by a net $76 million in 2017-18. The growth was driven by positive investment returns across the Long-Term Investment Pool and Funds Held-In-Trust portfolios (+$123 million in investments gains and income) and gifts and other additions (+$7 million), while distributions totaled $54 million to the University for the operating budget and non-operating activities. Beginning Value
$1,160
Gains and Income
$ 123
Endowment Gifts
$
6
Other Additions
$
1
University Distributions
$ (54)
Ending Value
$1,237
DID YOU KNOW? Endowment gifts are at a five-year high.
University Distributions $47 million of the endowment’s distributions went to the University’s operating budget, while $7 million contributed to long-term University initiatives, such as building maintenance and renovation planning, that are not part of Trinity’s operating budget.
(in millions, rounded)
Portfolio Value Growth Over Time
2009-2018
$1,400 $1,160
$1,200 $1,108
$1,000 $815
$833
$930
$800
$1,150
$1,237
$1,068
$959 $867
$600 $400 $200 $ in millions
2009
2010
2011
2012
2013
2014
2015
2016
2017
Long-Term Investment Pool (LTIP) –Managed by Trinity’s investment committee and internal staff
Funds Held-In-Trust (FHIT) – Managed by third parties on behalf of Trinity Total Portfolio Value
Source: Trinity University audited financial statements
2018
Distributions The endowment is critical to supporting Trinity’s mission Celebrating its 150th anniversary in 2019, Trinity aspires to redefine the liberal arts education for the 21st century. The University’s curriculum blends close collaboration with faculty in the classroom and experiential learning opportunities through internships and undergraduate research. This vision and mission could not be accomplished without the support of the endowment, as it represents one of the largest funding sources for the University operating budget. The endowment is able to provide this level of funding because of the performance of the LTIP and FHIT investment portfolios and the continued support of Trinity’s alumni and donor community. In 2017-18, Trinity’s endowment contributed $47 million to the University’s operating budget, representing 34 percent of total operating revenues. The amount of support the endowment provides to the operating budget is double the average and median for private colleges and universities.1 This level of support allows Trinity to maintain its commitment to the student experience, which includes strong scholarship and financial aid support.
Long-Term Investment Pool (LTIP) LTIP Asset Allocation Diversification provides benefits to an investment portfolio through exposure to assets with different sources of economic return. In an effort to better serve the long-term mission of the University and deliver superior risk-adjusted returns, Trinity has continued to diversify the LTIP over the last 20 years. The University maintains a portfolio allocation that captures long-term endowment growth through investments in different asset classes across financial markets globally.
100% 90% 80% 70% 60% 50% 40% 30% 20% 10%
40.0%
0% 1998
35.0% 30.0%
2000
2002
Fixed Income and Cash
2006
Inflation Hedge
Emerging Market Equity
34.0%
25.0%
2008
2010
2012
Hedge Funds
2014
2016
2018
Private Equity and Venture Capital
Global (ex-U.S.) Equity
U.S. Equity
LTIP Annualized Returns The long-term financial objective of the LTIP is to provide a stable and consistent level of ongoing support for the University’s operations while maintaining and enhancing the real purchasing power of the endowment fund in perpetuity. The following chart displays Trinity’s annualized returns over trailing periods within the last 10 years.
20.0% 15.0%
16.6%
10.0%
12.4% 8.3%
5.0%
6.6%
0.0% Endowment Support of Operating Budget
2004
Trinity University
Private College & University Average
7.2%
6.6%
Private College & University Median
1 Year
3 Years
5 Years
10 Years
Trinity Investment Returns (net of fees) 1. Cambridge Associates Private Colleges and University Endowment Data as of 2017. Data set includes 81 endowments.
All figures as of June 30, 2018
Campus Impact The Long-Term Investment Pool is made up of 585 individual funds. Approximately 58 percent of those funds constitute true endowments—gifts restricted by donors to provide long-term funding for designated purposes. The remaining funds represent quasi-endowments—money the Board of Trustees designate for key University purposes and treat as endowments. Both of these endowment classifications are governed by the University spending policy and actively contribute to Trinity’s operating budget. The 585 endowment funds are broadly categorized and support many areas across campus.
LOANS 8 funds $34,814,005 The endowment supports a loan fund program for student financial aid and academic support.
GENERAL 178 funds $436,181,820 General endowment funds support initiatives such as Trinity’s operating budget, athletics, academic programs, and the Stumberg Venture Competition.
FACULTY 61 funds $110,905,594 The endowment helps create the personable faculty-student environment at Trinity. Funds support endowed professorships, lectureships, fellows, and faculty development.
COATES LIBRARY 19 funds $10,201,814 Endowment funds support the Coates Library’s collection and resources.
BUILDINGS AND GROUNDS 32 funds $50,259,268 Trinity’s campus is a National Historic District, and the endowment supports the maintenance and construction of the University’s buildings and grounds.
SCHOLARSHIPS 287 funds $211,241,292
A Gift That Lasts a Lifetime
University Scholarship and Financial Aid Support Trinity is committed to making education affordable for its students. Over time, though the price of a Trinity education has increased, the average 2009 2010 2011 2012 2013 2014 individual cost has remained relatively flat through the growing 2009 student2010 2011 2012 2013 2014 Average net total cost per student $25.50 (tuition and room$27.00 and board) $25.80 $27.70 $29.30 $27.20 Average net total cost per student $25.50 (tuition and room$27.00 and board) $25.80 $27.70 $29.30 $27.20 support of scholarships and financial aid provided by the University.
2015 2015 $29.00 $29.00
Average Cost Per Student (Tuition and Room and Board) (in thousands)
$35 $30 $25 $0 2009
2010
2011
2012
2013
2014
2015
2016
2017
2016 2016 $28.40 $28.40
A gift to the endowment provides a perpetual, growing impact on the University and its2018 students. For example, 2017 2017 2018 $29.40 $30.20 the Genevieve and Cameron Duncan $29.40 $30.20 Family Scholarship was created 15 years ago as part of an estate gift. Since then, the fund has almost doubled, while distributing 83 percent of its original value for student scholarships. This generous donation, like so many others, has provided and will continue to provide support for Trinity’s mission and students for the next 150 years and beyond.
2018 Dollar Amount
Over the past 10 years, Trinity has more than doubled its scholarship and financial aid support. Support from endowed scholarship funds has also grown, funding 17 percent of total financial aid in 2018.
2009
$25 million $8 million
2018 $58 million $10 million
University Support of Financial Aid Endowed Scholarship Fund Support
Original Gift Amount (Jan. 31, 2003) Market Value at May 31, 2018
Total Impact
$671,918 $1,238,090
1.84x
Cumulative Distributions
$555,610
0.83x
Total Impact
$1,793,700
2.67x
One Trinity Place San Antonio, TX 78212-7200 CHANGE SERVICE REQUESTED
For any questions about the endowment, please contact the Office of the Vice President for Finance and Administration at 210-999-7306 or the Office of the Vice President for Alumni Relations and Development at 210-999-7320.
Trinity University’s endowment strengthens the Trinity journey beyond just providing financial support to the University. In partnership with the Center for Experiential Learning and Career Success, the endowment office launched an internship program beginning in 2017-18. The endowment office has welcomed one Trinity student in both summer 2017 and 2018 to receive hands-on experience with investment and operational activities involved in managing the endowment. This past summer, Walker Lands assisted the endowment office with investment research, financial analysis, and ongoing strategic initiatives.
WALKER LANDS ’19 Bachelor of Science in Finance and Accounting Denver, Colo.
“Trinity is a truly transformative experience. My work with the endowment has taught me the importance of taking pride in producing consistent, high-quality work. The University’s endowment office has provided me an opportunity I could not have found elsewhere.”