Impact that lasts
Endowment Report
2019 / 2020
When you provide an endowed gift to the University of Waterloo, your impact is felt for generations. Endowed gifts are prudently invested, extending their power for many years to come.
These gifts provide transformational resources for our students, faculty and campus community. In this report, you’ll find highlights and stories that show your impact. Thank you for contributing to their success – today and in the future.
In 2019-2020, over 700 individually named endowment funds generated $13.2 million to support vital resources.
These resources were allocated to support five key priority areas.
$417.5 million
Market value
The dollar value at which investments in the endowment pool could be sold in the open market. Market Value, as at April 30, 2020, is $417.5 million.
$387.6 million
Book value
The dollar value of all contributions and capitalized earnings that have been deposited into the endowment principal. Book Value, as at April 30, 2020, is $387.6 million.
The endowment fund total return for the year ending April 30, 2020, was 2.57% and the annualized total return for the 5 years ending April 30, 2020 was 5.3%.
The total return includes both realized returns (interest, dividends, realized gains and losses) and unrealized returns (unrealized gains and losses).
40%
FIXED INCOME
Phillips, Hager & North Investment Management Ltd. TD Asset Management Ltd.
30%
CANADIAN EQUITIES
Phillips, Hager & North Investment Management Ltd. Sionna Investment Managers. University of Waterloo
30%
GLOBAL EQUITIES
Walter Scott and Partners Ltd. Fiera Capital Corporation
The Finance and Investment Committee reviews and approves the asset mix. The permitted ranges are: Cash or Equivalents (0-10%), Fixed Income (30-70%), Equities (30-70%), and Alternatives (0-20%).
How funds are allocated and preserved
The allocation to each endowment fund is based on the weighted average principal of the endowment as at March 31 each year. The expendable rate for the year ending April 30, 2020 was 3.5%. The expendable rate for the current year, ending April 30, 2021, is projected to be 3%. The expendable rate is determined annually. The excess of the realized investment income over the amount made available for spending based on the expendable rate is transferred to the principal for inflation protection (“CPI increase”). Any additional remainder is transferred to a reserve to benefit future years.
Endowment Fund Managers
The Finance and Investment Committee exercises general oversight of the financial affairs of the University and reviews the portfolio and performance of the fund managers. The committee reports annually to the Board of Governors, recommending changes as required. All endowed contributions are pooled and invested on a University-wide basis.
Getting students off the shoestring budget
After graduating from Waterloo with an honours degree in philosophy, Bob Ewen (BA ’71) earned an MBA and achieved considerable success as a broker and discretionary money manager in the Canadian securities industry. While he recalls his years at Waterloo with fondness, he points to the financial barriers he faced while earning his degree.
Launchpad for success
I chose to study computer science at Waterloo to pursue my passion for ideas at the intersection of technology and health care. I became interested in the field in high school, when I had the opportunity to make a prosthetic for a student I was tutoring. I’ve grown up hard of hearing, so I understand some of the ways that technology can really improve health outcomes.