The investment objectives of Western are consistent with the permanent nature of endowed gifts: to generate sufficient return to annually fund scholarships, research, and other academic programs at Western and to maintain capital value over time.
The Board of Governors appoints an Investment Committee to recommend and implement appropriate investment policy. The Committee is further charged to hire investment managers and monitor performance with support from Western’s Director of Investments and independent consulting.
The total return earned by the endowment portfolio net of investment management fees of approximately 0.6 per cent is allocated proportionately to the capital of each endowed fund annually. For the period May 1, 2013 to April 30, 2014, the net investment return was 16.5 per cent.
An amount equal to 4.0 per cent is allocated for spending purposes each year. This spending allocation is calculated on the average value of the endowment over the last five years to smooth investment market value fluctuations. This spending allocation is reflected as a transfer from capital to the spending account.
Balances in the spending account are credited with interest income equal to the 30 day Canada T-Bill rate each quarter.
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Douglas Greaves, HBA’72 William Hewitt Rosamond Ivey, HBA’82 James Knowles, BSc (Hons)’74, MBA’77 Rick Konrad, BA’75 Douglas Porter, BA’82, MA’84 |
Lee Sienna, HBA’74 David Stenason, BA’ 78 Martin Belanger* Gitta Kulczycki* Lynn Logan (Chair), EMBA’13* |
*Ex-Officio
Degrees listed represent those granted by Western University
Each endowment fund is managed through two accounts, a Capital Account and a Spending Account.
| Total Donations | Cumulative gifts made to the fund. |
| Prior Years Returns & Allocations | Investment returns earned in prior years, plus any transfers from the Spending Account, less all annual allocations for spending prior to May 2013. |
| 2013/2014 Investment Returns | Investment return for the year net of investment management fees. |
| 2013/2014 Allocation | Amount allocated for spending calculated at 4.0 per cent of the capital balances averaged over the five most recent years. This amount is transferred to the Spending Account. |
| Other Transactions as listed | Miscellaneous activity, if any. |
| Opening Balance | Cumulative amount available for spending, less expenditures from prior years, and including prior interest earned on the Spending Account balance |
| 2013/2014 Investment Returns | Interest income on Spending Account balance |
| 2013/2014 Allocation | Amount allocated for spending calculated at 4.0 per cent of the capital balances averaged over the five most recent years. This amount is transferred from the Capital Account. |
| Other Transactions as listed | Expenditures from the account and other activity as described. |
| 2014/2015 Allocation | Amount to be allocated for spending in 2014/2015 to support the stated purpose of the endowment. |
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