2023 NORTHERN STATE UNIVERSITY ENDOWMENT REPORT FOUNDATION TM
YOUR ENDOWMENT Your endowment is one of approximately 500 established at the Northern State University Foundation. Endowment gifts are permanently invested and the annual earnings are used according to each donor’s wishes to provide scholarships and to fund other initiatives at NSU. By establishing an endowment, you have made an important and long-lasting gift to support Northern State University. The NSU Foundation Investment Committee works to ensure your investment will meet both current and future needs of NSU students by following policies designed to generate a steady stream of earnings for annual payout while preserving and growing your original gift by reinvesting a portion of the annual earnings. INVESTMENT OVERVIEW The NSU Foundation Investment Committee proposes investment policy to the Board of Directors and oversees the endowment pool performance. The Committee follows guidelines established through the Uniform Prudent Management of Institutional Funds Act (UPMIFA) to provide long-term returns while maximizing funds currently available for scholarships and other endowment needs. Current investment objectives include allocating funds between equity, fixed income, and alternative investments (real estate and private equity) to meet targeted investment allocations. Both a floor and ceiling surround each target to allow for flexibility with market movement. The investment mix within each of the three main categories is determined by the Foundation’s investment advisors. NSU FOUNDATION ANNUAL ENDOWMENT REPORT $11,551,381 Board-Designated $41,679,512 Donor-Restricted $53,230,893 Total ENDOWMENT FUNDS Unaudited as of Dec. 31, 2023
ENDOWMENT GROWTH As of June 30, 2023, the NSU Foundation’s pooled endowment had a value of over $49.2 million, an increase of almost 60% over the past six fiscal years. Graph to the right shows the historical market values for the most recent fiscal years. ENDOWMENT DISTRIBUTIONS Although individual endowments are combined into one investment pool, each individual endowment is tracked and accounted for separately. Annual returns in excess of the payout and annual 1.95% administrative fee are reinvested for each individual endowment as protection from inflationary erosion and to provide for future payouts in years with lower market returns. Graph to the right represents endowment expenditures for each year ending June 30. FY 2023 $2,196,249 FY 2018 $1,569,113 FY 2019 $1,535,311 FY 2020 $1,865,799 FY 2021 $1,887,996 FY 2022 $2,050,597 $1M $1.2M $1.4M $1.6M $1.8M $2M $2.2M $10M $15M $20M $25M $30M $35M $40M $50M $45M FY 2023 $49,215,371 FY 2018 $30,771,230 FY 2019 $31,714,535 FY 2020 $31,232,627 FY 2021 $37,554,641 FY 2022 $36,271,673 Fiscal Year (July 1 – June 30) $ ASSET ALLOCATION Alternative Investments Fixed Income Investments Equity Investments 63.70% 22.10% 14.20%
620 15th Ave SE Aberdeen, SD 57401 Phone: (605) 626-2550 Fax: (605) 626-2431 Email: nsualumni@northern.edu northernstatefoundation.com FOUNDATION TM
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