Download Endowment Fund

University of Ottawa
University of Ottawa
Endowment Fund
2011-2012 Report
www.financialresources.uOttawa.ca
Endowment fund facts and figures
Endowment (fiscal year ending April 30)
20072008-
20082009-
20092010-
20102011
Endowment allocation by faculty or service
TEACHING AND
LEARNING
SUPPORT SERVICE
$72,596
20112012
GRADUATE AND
POSTDOCTORAL
STUDIES
$3,480,503
ENGINEERING
$5,392,954
CIVIL LAW
$1,535,918
COMMON LAW
$14,744,276
FINANCIAL AID
$19,737,931
SPORTS
$8,048,580
GENERAL
$1,908,389
TELFER SCHOOL
OF MANAGEMENT
$30,508,689
SOCIAL SCIENCES
$13,486,190
ARTS
$22,153,005
SCIENCE
$8,162,780
MEDICINE
$46,436,287
HEALTH SCIENCES
$7,205,793
$141M
$129M
$164M
$178M
EDUCATION
$957,823
$184M
At the end of the 2011-2012 fiscal year, the value of the
University of Ottawa endowment fund was $184 million.
Investment returns for period ending March 31, 2012
The Finance and Treasury Committee of the University of
Ottawa oversees the management of the endowment fund.
This includes evaluating performance relative to established
goals, monitoring compliance with policies and procedures
and making recommendations in these areas.
Investment returns are calculated for the period ending
March 31 and are used to establish the spending rate for
the following fiscal year.
The current asset mix for the endowment fund
(April 30, 2012)
• Equities
56%
• Fixed income
27%
• Alternatives
17%
Total
Total endowment
fund return
1 year
4 years
10 years
5.56%
3.73%
4.62%
Financial report definitions
Endowment fund
A fund established through the transfer of money,
investment product or property. The capital is maintained
and invested in perpetuity over a long-term period while the
annual interest generated is either reinvested or spent as per
donor requests.
Donations received
Total amount of charitable investments made by benefactor
to a fund, program or initiative.
Matching funds
Monies made available through programs established by
provincial or federal governments, the University of Ottawa,
donors or corporations. Matching funds leverage the donor’s
endowed investments and its impact on programs or
initiatives requested by the donor.
Investment income earned
The return received or the loss incurred by investors on their
investment portfolios, including interest, dividends and
realized and unrealized capital gains or losses.
Balance of endowment fund
The amount of money remaining in an endowment fund
at a given date, after all past remittances, payments and
withdrawals have been accounted for. It can be positive
(an asset) or negative (a liability).
Amount available for distribution (or transfer
for distribution)
Expendable net income or retained earnings generated
by an endowment fund that may be directed towards a
specified program or initiative. The distribution amount
represents an annual percentage as determined by the
Administrative Committee of the University of Ottawa.
Income transferred for distribution
Income transferred from the endowment fund to the
distribution fund as determined by the Administrative
Committee of the University of Ottawa .
Financial Report – Questions and Answers
What are the criteria used by the Canadian Association of
University Business Officers (CAUBO) in their University
Investment Survey, and what other institutions are
ranked with the University of Ottawa?
The CAUBO survey compiles investment performance data
and other metrics, such as asset allocation and spending
policy, from participating Canadian universities. The
University of Ottawa’s endowment fund performance is
ranked against that of a peer group of 23 Canadian university
endowment funds valued at more than $100 million.
If I create an endowed scholarship in this academic year,
when could funds be transferred for distribution?
If the economy does well, the University will be able to
award a scholarship in 2013-2014 (for donations received
before April 30, 2012). Still, the University cannot predict
investment performance and, thus, exactly when funds can
be transferred for distribution. The University’s investment
strategy is to achieve capital growth and stable income over
the long term, so returns can be volatile from one year to
the next.
How do you determine how much income is transferred
to the distribution fund?
The University’s endowment funds are regulated by
Policy 111 – Non-Expendable Endowment Funds. The amount
available for distribution is either 4.0% of the original
donated capital (increased by inflation every year) or the
investment income after expenses, whichever is the lesser.
Income is not transferred should the fund value be below
the original capital.
How is investment income allocated to individual
endowed funds?
Every year, the University adds (subtracts) the investment
income after fees and expenses. Investment income
includes interest and dividends, as well as realized and
unrealized capital gains or losses. Fees and expenses include
investment management fees, custodial and professional
fees, and internal administration costs.