Page 6 - 2014 Endowment Report

The Endowment Mission
The endowment provides perpetual funding to support the University’s educational goals while preserving real value for future generations.
To that end, the University’s Board of Trustees, Investment Visiting Committee, and Administration have a shared mission to maximize
the endowment’s total return consistent with the University’s prudent investment risk constraints. This mission requires an expected long-term return that exceeds the inflation-adjusted annual spending rate. In order to pursue that goal, the University maintains an equity-biased portfolio and seeks to partner with best-in-class management firms across diverse asset categories while also managing some endowment assets in-house. The Investment Office manages the endowment under the guidance of and within the policies authorized by the Investment Visiting Committee of the University.
The target spending rate for the endowment is 4% to 5% of the three- year average market value as determined annually by the University’s trustees. In Fiscal 2014, the spending distribution to the University
was $48 million, providing financial support and flexibility to the University’s operating budget. In recent years, the endowment’s role in supporting the University has become more meaningful as funding from the State of Delaware has declined. This support is likely to become even more important in the coming years given the challenges facing higher education today.
Historical State Operating Appropriations as a Percentage of Operating Revenue
State Operating Appropriations/Operating Revenue
22% 20% 18% 16% 14% 12% 10%
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
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