Combined and Pooled Endowment Funds 2017 Investment Report
Like universities around the country, Case Western Reserve benefitted from significant stock market gains during the last fiscal year. The investment return on the university’s combined endowment—that is, funds the institution manages as well as those held and managed by others—was 12.7 percent for the period from July 1, 2016 through to June 30, 2017.
The university’s one-year performance trailed Cambridge Associates’ 12.9 percent benchmark median return for higher education institutions by 20 basis points, but its three-year figure of 4.55 percent exceeded Cambridge’s 3.92 percent by 63 basis points. Cambridge Associates is a global investment-consulting firm that provides research and benchmarks across many funds and industries.
The Combined Endowment includes two categories of long-term resources. The first—known as “Pooled Investment Funds,” or the “Endowment Pool”—involves dollars the university manages directly. This pool constitutes a significant majority of the university’s total endowment. The second category consists of contributions designated for Case Western Reserve that foundations or other organizations manage. These dollars are called “Funds Held By Others.” When the university adds the funds it manages to those held by others, the overall amount is called the “Combined Endowment.”
Endowment gifts not only help secure the institution’s long-term future, but also can support students, faculty and staff in the present day. Over time, these contributions typically generate additional resources through the investment returns they earn. Each year, a small portion of those returns can be spent to support the gift’s purpose—for example, to provide financial support tied to a scholarshi
Case Western Reserve deeply appreciates every gift to the university’s endowment. The university takes seriously its obligation to steward carefully all of the contributions the university receives. Meeting this responsibility requires a delicate balance of two priorities that sometimes can be in tension with one another: maximal growth and minimal risk. Commitments to the endowment are meant to advance aspects the university’s work both now and in perpetuity.
Disbursements made from the endowment to support current needs are among the factors that influence its value in a given year. Other elements include investment returns, investment appreciation, and new donor commitments. For Fiscal Year 2017, the value of the Combined Endowment totaled $1.80 billion. This figure reflects a gain in market value of 8.18 percent over the previous year.
Case Western Reserve deeply appreciates every contribution the university receives to advance its mission of education and research. Endowment gifts represent an enduring commitment to the institution and its work, and it is the university’s obligation to steward those funds to ensure lasting impact. Meeting this responsibility requires a delicate balance of two priorities that sometimes can be in tension with one another: maximal growth and minimal risk.
The investment approach to endowment funds aims to preserve the value of the original commitment, and also increase its worth through the accumulation of investment returns that exceed disbursements. To that end, the university’s portfolio is allocated across a broad range of areas, among them domestic and foreign public equities, fixed-income funds, private capital and real assets.