Endowment Report. ~ Anna Rice 17, public health studies major

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1 2014 Endowment Report Little did I know how much this scholarship would impact the person I have become. Now I see myself as a global citizen who is aware of issues occurring both domestically and internationally. I want to improve the lives of others... just as you have personally done for me. ~ Anna Rice 17, public health studies major

2 At Elon, I was able to pursue opportunities in research, community engagement, and study abroad that helped me to discover what I love and how I want to impact the world. This past Winter Term, I studied public health at the Comprehensive Rural Health Project in Jamkhed, India. The trip inspired me to make community medicine and public health a priority in my future medical career. I am taking a gap year before attending Johns Hopkins School of Medicine as a Class of 2020 medical student. I was awarded the Mabelle Arole Fellowship, which will allow me to return to Jamkhed to assess community health needs, assist physicians, and conduct epidemiological research. ~ Lauren Sutherland 15, biochemistry major Spring 2015 Dear friends, It is a pleasure to write to you with good news of Elon University s endowment growth and to share more detail than ever before on how our endowment is managed and distributed. We hope you enjoy our new format for communicating this important information. Endowments are the lifeblood of Elon University, generating critical sources of funding for scholarships, professorships, and programs. In particular, endowed scholarships provide both need-based and merit-based aid that helps to shape each incoming class of students. These funds allow us to make smart investments in bright, talented students from a wide array of backgrounds, students who enrich our community in many meaningful ways. Take special note that nearly two-thirds of our endowment is designated for scholarships. Many student recipients would not be at Elon without the financial support these endowed scholarships provide. The moments of transformation those students experience each day in the lab, on the stage, on the athletic field, or in conversations with treasured faculty mentors are made possible by you. The testimonials from students and faculty in this report only begin to demonstrate the impact of our more than 700 endowed funds on the Elon community. Indeed, endowments change lives. On behalf of all those recipients and the entire Elon community, we thank you our endowment donors for choosing to make a difference. Sincerely, James B. Piatt, Jr. Vice President for University Advancement

3 Elon s Endowment Funds Endowment Market Value The Elon University endowment consists of individual funds established for a variety of educational purposes. The bulk of endowed funds are designated by donors for scholarships, as illustrated in the accompanying pie chart. The endowed funds are pooled together for investment purposes. Investment Returns The endowment pool utilizes a total return strategy in which investment returns are achieved through both capital appreciation (realized and unrealized) and current yield (interest and dividends). External investment managers are employed to oversee the endowment and tasked with the objective of achieving returns that equal or exceed five percentage points (net of fees and in excess of spending and inflation). These investment managers utilize a highly diversified mixture of equities, fixed income, and alternative investments. The university s primary investment objective is to maximize total return within reasonable and prudent levels of risk while maintaining sufficient liquidity to meet disbursement needs and ensure preservation of capital. 190, , , , , , , , , ,000 90,000 80,000 70,000 60,000 50,000 10,000 9,000 61,275 66, ,896 86,530 82,145 Spending Distribution 103, , , , ,324 Global Endowment Management Charlotte, N.C.-based Global Endowment Management (GEM) provides management services for Elon s endowment. Since 2008, the firm has navigated turbulent markets to produce impressive results on Elon s behalf. From 2008 to 2014, Elon s endowment has grown from $86 million to $189 million, keyed by GEM s strategic investment leadership. Spending Policy It is the practice of the university to prudently invest pooled endowment funds consistent with the endowment asset allocation policy approved by the Board of Trustees. The university s spending policy is based on the moving three-year average of the market value of the pooled endowment that equated to a spending policy rate of 4.5 percent at May 31, Actual endowment return earned in excess of distributions under this policy is reinvested as part of the university s endowment. For years where actual endowment return is less than distributions under the policy, the shortfall is covered by available gains from prior years. Specific appropriation for expenditure of unrestricted funds under the university s endowment spending policy occurs each spring when the Board approves the university s operating budget for the ensuing fiscal year. All donorrestricted returns are invested until appropriated for expenditure by the institution. 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 2,564 2,833 3,045 3,336 3, ,073 4,109 4,584 Designation of Elon s Endowment 5, All Other Scholarships 6,136 64% Unrestricted 12% Programs 13% Professorships 8% Athletic Scholarships 3%

4 Being recognized as the Japheth E. Rawls Professor for Undergraduate Research in Science is an honor. This endowed professorship allows me to spend additional time mentoring multiple students on a research project examining the impact of concussions on student-athletes. The discretionary funds that come with the professorship help send students to conferences where they present their research and meet fellow scholars in the field. ~ Eric E. Hall, professor of exercise science With this scholarship, I will be the first person in my immediate family to graduate from a collegiate institution. The lessons I have learned from being able to balance academics, football, my fraternity and my social life will carry me for the rest of my life! I m very appreciative of this scholarship. It is the best thing that has ever happened to me. ~ Andre Davis 15, sport and event management major Elon has equipped me with the tools to develop into a successful leader, scholar, and overall person. I will be forever grateful for how this scholarship has contributed to my academic development. ~ Danielle Biggs 15, arts administration and dance performance double major Your generosity has allowed me to attend the school of my dreams. I am overwhelmed by all of the amazing opportunities that have become available to me, and I am excited for what lies ahead. Thank you for your investment in my education. ~ Joanna Salerno 18, marketing major

5 Endowments are life changing. Pictured above are members of Elon s Watson and Odyssey Scholars Program. The following endowed scholarships benefit Watson-Odyssey students: The Elon Commitment Scholarship The Honorable Thad Eure North Carolina Achievement Scholarship The John L. Georgeo Scholarship The Margaret Ann Hall Scholarship The Jessie Thurecht Hook Scholarship The Gail H. LaRose Scholarship The Mac Mahon Family Scholarship The Susan Scholarship The Leon and Lorraine Watson North Carolina Achievement Scholarship Administered through the Center for Access and Success, the Watson-Odyssey Scholars Program offers highly selective merit-based awards to promising students who are engaged, action-oriented leaders in their communities. Watson-Odyssey Scholars are among the university s topperforming students, regularly included on the President s and Dean s Lists and recipients of prestigious awards such as The Lumen Prize, Elon s highest award for undergraduate research and creative achievement. Currently there are 105 students in the program, including 25 in the Class of 2018.