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Wichita State University Foundation Endowment Fund

Name:The Wichita State University Foundation

Assets Under Management: $259.7 Million (Source: Wichita State University Foundation on 6/30/2014)

Annual Report: The Wichita State University Foundation’s Annual Report | Fiscal Year 2014

Portfolio Insights: “The Wichita State University Foundation’s investment objective is to achieve, over the long term, an annualized total net return that meets or exceeds the sum of: 1) the established payout rate to support campus and student’s needs, 2) an administrative fee that partially funds the Foundation’s operating expenses, and 3) the current rate of inflation to ensure future buying power.

The WSU Foundation, through its nine-member Investment Committee, manages for consistent returns with a long-term view requiring careful attention to balancing the risks and rewards inherent in portfolio management. The portfolio is positioned through an asset allocation, which varies depending upon market conditions and seeks growth while managing and diversifying risk. With the assistance of the investment advisor and managers, we are confident in meeting the stated long-term objective.” (Source)

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Top Wichita State University Foundation Endowment Fund Headlines:

1) The purpose of this Investment Policy Statement (hereinafter, “IPS”) is to establish a clear understanding of the investment objectives and philosophy for the Wichita State University Foundation (hereinafter, “Foundation”).  This document will describe the standards approved by the Wichita State University Foundation Board of Directors (hereinafter, “Board”) to direct the prudent investment of its endowed funds in the pooled portfolio (hereinafter, “Portfolio”).  It will be utilized by the Investment Committee (hereinafter, “Committee”) in monitoring investment performance, as well as, serve as a guideline for any investment manager retained.While shorter-term investment results will be monitored, adherence to a sound long-term investment policy, which balances short-term distributions with preservation of the real, inflation-adjusted value of assets, is crucial to the long-term success of the Foundation.

The primary investment objective of the Portfolio is to achieve an annualized total return (net of fees and expenses), through appreciation and income, equal to or greater than the rate of inflation (as measured by the broad, domestic Consumer Price Index) plus any spending and administrative expenses thus, at a minimum maintaining the payouts to campus, Wichita State University. (Source)

2) The Wichita State University Foundation closed its fiscal year 2013 with more than $22.5 million in total giving. That total included nearly $5 million in gifts from 19 estates.

The university says its College of Engineering garnered the most private support last year, largely because of a major gift from the estate of Velma Wallace. WSU received $3 million of Wallace’s estate gift in fiscal year 2013. Her total gift will be $6 million, but the university won’t receive the other half until later this fiscal year.

The WSU Foundation says it received record contributions for its Annual Fund for Excellence, KMUW 89.1, the WSU Alumni Association and the Shocker Athletic Scholarship Organization.

The total market value of the WSU Foundation’s endowment is valued at roughly $230 million, and nearly $7.5 million of that was added during fiscal year 2013. The foundation says its investment return last year was 8.8 percent, increasing its five-year return to 3 percent. (Source)

3) Wichita State University is bolstering an endowment fund for engineering students, thanks to a $6 million gift from the estate of Velma and Dwane Wallace. The WSU Foundation says that more than half of the $6 million will be added to the Dwane L. and Velma L. Wallace Endowment Fund, first established in 1976.

Nearly 40 students, 10 of them incoming freshmen, received scholarships from that endowment during the 2012-2013 school year. WSU hasn’t yet decided whether to increase the number of scholarships or the dollar amount. The Wallaces were longtime benefactors of Wichita State, also making contributions the School of Music, the College of Education and WSU athletics.

Dwane Wallace led Cessna Aircraft Co. for more than 40 years. He died in 1989. His wife carried on their philanthropy until she died in 2012. (Source)

4) The endowment of Wichita State University Foundation was created a little more than a quarter-century ago, shortly after the U.S. was rocked by the Watergate scandal and Gerald Ford was sworn in as the new President. Despite its relatively young age, however, the fund has grown to $135 million in assets thanks to a diverse asset allocation policy and prudent management. Today, the fund is seeking even more diversity, as it is readying a soup-to-nuts review of all nine of its traditional portfolio managers and is in the midst of interviewing managers for a search for mid-cap growth and mid-cap value. The new managers, combined, will handle 15% of the fund. (Source)

5) The Wichita State University Foundation announced that it closed fiscal year 2014 with nearly $31 million in total giving, which includes cash, gifts-in-kind, pledges and new planned gifts from donors age 63 and older. Not including the new planned gifts, the subtotal for the fiscal year is $28,783,197.

“The 2014 fiscal year was the beginning of the quiet phase of the comprehensive campaign,” said Elizabeth King, WSU Foundation president and CEO. “By including the new planned gifts, we are following best practices of campaign counting at universities across the country.”

Planned gifts can include a gift from estates, retirement plan assets or naming WSU as the benefactor of life insurance policies — gifts that come to fruition after a person’s lifetime. (Source)

About Richard C. Wilson