Letter from the CIO

Dear Faculty, Staff, Alumni and Friends of Tulane University,

What a difference a year makes. After a historic year for returns in fiscal year 2021, this past fiscal year proved much more difficult to generate strong or even positive returns. With MSCI ACWI down -15.8% and Barclay’s Aggregate also down double digits, a traditional blended portfolio of stocks and bonds would have been highly correlated and generated dismal results. Fortunately, our long-term commitment to alternative assets proved to be much needed diversifiers and enabled Tulane’s endowment to generate outsized returns.

During FY2022, Pooled Endowment and Eminent Scholars generated returns of 6.2% and -7.7%, respectively, well ahead of their benchmarks and the 65/35 passive benchmark return of -13.7%. Performance was led by strong results in our private capital and marketable alternatives portfolios. The private capital portfolio continues to generate a significant illiquidity premium that will be a driver of endowment performance for years to come. With marketable alternatives, our commitment and patience finally paid off as our managers were able to capitalize on idiosyncratic opportunities throughout the year. I am confident our marketable alternatives portfolio will hold up well and be a good diversifier in this particularly volatile and uncertain market environment. The stark difference in returns between Pooled Endowment and Eminent Scholars speaks to the diversification power of alternative assets in an environment where traditional asset classes have become highly correlated. Eminent Scholars’ limitation on alternative assets caused it to trail Pooled Endowment by nearly 1400 basis points during the fiscal year. Despite the difficult investment environment in FY2022, Tulane’s endowment reached a new high of $2.05 billion as of June 30, 2022.

Over the last ten years, Pooled Endowment and Eminent Scholars generated returns of 10.6% and 8.4%, respectively, ahead of their benchmark returns of 8.0% and 6.7%, respectively. Our consistent performance has led to long-term success. That consistency has been anchored by a wonderfully talented and incredibly stable team as well as unwavering support from our Endowment Management Committee.

While the current market environment feels daunting given persistent inflation, rising rates, a looming recession, geopolitical tensions, and global energy shortages, I am confident that our portfolio can withstand potential headwinds along the way. Over more than a decade, our staff and Committee have built a well-diversified, multi-asset class portfolio that can weather near-term challenges and uncertainty while enabling it to achieve its long-term return objectives. On behalf of myself and my entire team, we are honored to have the opportunity to manage the endowment and remain committed to serving the Tulane community.

FISCAL YEAR 2022 ACCOMPLISHMENTS:

F Hired five new managers and exited six funds across the marketable portfolios

F Added to or trimmed from 21 existing managers

F Added three new private capital relationships and re-upped with 13 others

F Closed three new co-investments

F Completed an extensive (12th annual) review of all managers in the portfolio

F Completed operational due diligence on 21 new and existing managers

F Conducted 550+ manager meetings calls and conferences

F Hired a new Investment Analyst,

Harrison Pearlson (B ’22)

F Completed our 14th annual summer analyst program and sponsored a

Girls Who Invest scholar

IMPORTANCE OF AN ENDOWMENT Protection – Innovation – Commitment

After 188 years, Tulane University has established itself as one of the world’s preeminent educational and research institutions. The University’s mission exists in perpetuity. However, to continuously offer new programs and new services requires an ever-growing pool of financial resources. The Endowment is unique among the University’s revenue streams since it provides perpetual support for Tulane’s students, both current and prospective. To put the power of the Endowment in perspective, a $1.0 million gift made ten years ago and invested in the Pooled Endowment generated more than $559,000 in distributions used to recruit the highest quality students regardless of financial need, to pay professorships and fund basic research, and to perpetuate community service initiatives. Most importantly, that original gift remains intact today and will continue to fund Tulane in the future. We urge you to support the Endowment because these specific gifts ensure the long-term financial strength of the Institution, benefiting future generations of Tulanians.

COMPONENTS OF MARKET VALUE THE ENDOWMENT

Pooled Endowment $1,602,893.0

Eminent Scholars $233,730.0

Separately Invested $182,333.1

University-Owned Real Estate $16,647.7

Gift Annuities/Life Income Trusts $16,337.0

TOTAL ENDOWMENT $2,051,940.8

T O T A L E N D O WM E N T (I N $ MM)TOTAL ENDOWMENT (IN$MM)

$2,500

$2,000

$1,500

$1,000

$500

$0

6 9 8 1 F Y 87 1 9 FY 9 9 8 1 F Y 9 0 1 9 FY 2 9 9 1 F Y 9 3 1 9 FY 5 9 9 1 F Y 9 6 1 9 FY 8 9 9 1 F Y 9 9 1 9 FY 1 0 0 2 F Y 0 2 2 0 FY 4 0 0 2 F Y 0 5 2 0 FY 7 0 0 2 F Y 0 8 2 0 FY 0 0 1 2 F Y 1 1 2 0 FY 3 0 1 2 F Y 1 4 2 0 FY 6 0 1 2 F Y 1 7 2 0 FY

POOLED ENDOWMENT EMINENT SCHOLARS SEPARATELY INVESTED GIFT ANNUITIES & LIFE INCOME TRUSTS

Athletics 1%

School of Liberal Arts 11% School of Public Health and Tropical Medicine A.B. Freeman School 2% of Business 6% School of Social Work 1%

General University 25%

Law School 5%

Centers, Institutes and Libraries 7%

School of Architecture 1% School of Medicine 22%

Financial Aid 14%

School of Science and Engineering 4%

Tulane launches space law program with $1 million gift

Tulane Law will launch a new program in space law with a generous gift of $1 million from alumna Darleen Jacobs (L’81).

The program will leverage Tulane’s world-leading strength in maritime law to address related legal issues now emerging with the private exploration and exploitation of space.

The gift will create the Judge S. Sanford Levy and Judge Anna Veters Levy Endowed Fund, named for Jacobs’ late husband and his first wife, which will be used exclusively to develop the space law program at Tulane.

“We are enormously grateful for Darleen Jacobs’ vision and generosity and excited about what it will make possible,” said law Dean David Meyer. “This new program will put Tulane at the forefront of addressing new and urgent questions that will govern the coming age of private and commercial space exploration.”

Space law is primarily governed by the domestic and international laws that determine the use and exploration of outer space and is anchored in legal frameworks drawn from maritime law and the law of the sea. Tulane’s global leadership in these fields, as well as in international law and environmental law, position it uniquely to contribute to the study and development of space law.

Tulane’s program will launch at a turning point in the exploration of space, when space is no longer the sole domain of national governments and is rapidly opening to private exploration by companies such as Space X and Virgin Galactic. The dawn of private space travel has ushered in not only the possibility of tourism but also of the extraction of minerals and other resources and commercial activities.

The fast-paced developments are spurring new attention to legal questions related to the regulation of travel and economic activities for which there are presently no ready answers. The early decades of space law began with the Outer Space Treaty of 1967 and focused mostly on regulating the actions of superpowers in the Cold War-era Space Race, including the military use of space. With the arrival of private space exploration, new legal frameworks will be required to address a host of practical concerns ranging from liability for injuries and environmental impacts to navigation and jurisdiction.

“Space law is a well-established field that was originally concerned principally with military and scientific uses of outer space," said Prof. Martin Davies, who is the director of the Tulane Center for Maritime Law. "The increasing use of space for commercial purposes raises new questions about the legal regulation of commercial activity in areas beyond the national sovereignty of any single country. Maritime law and the law of the sea have long experience with exactly those kinds of transnational questions, which is the value that Tulane, with its historic strengths in these fields, hopes to add to space law studies, thanks to this generous gift." Jacobs is a founding partner of Jacobs, Sarrat, Lovelace, Harris & Matthews, her firm in New Orleans which practices plaintiff litigation. She has earned a reputation in the legal world as a tough attorney who is a staunch advocate for her clients.

A local born and raised in the lower 9th Ward, Jacobs put herself through school, earning her undergraduate degree from Louisiana State University and her J.D. from Loyola College of Law, where she often was the only woman in her law classes. She received an LLM in admiralty law from Tulane Law School and is a prominent local trial lawyer, developer, and owner of Home Finders International. She also is a licensed pilot.

“Space law in the next three years will be at the height of all corporate agendas,” said Jacobs. “It is time to move forward to the next level of legal challenges, and Tulane Law School is in the best position to do that.

Jacobs made the gift in honor of her late husband and his first wife, both of whom made significant contributions to the law in Louisiana. Judge S. Sandford Levy was a Loyola University Law graduate who was first appointed to the bench in 1964 on the First City Court in New Orleans. He later was elected to Civil District Court in Orleans Parish where he served with distinction until 1983.

Judge Anna Judge Veters Levy (NC’13, G’15) was a Newcomb College and Tulane graduate who later attended Loyola Law. She was among the first women to practice law in Louisiana and in 1941 was the first woman elected judge in the state. She served on the Juvenile Court in New Orleans, pioneering the humane treatment of juvenile offenders. In 1956, she wrote the book, “Other People’s Children” advocating for a holistic approach to juvenile justice.