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2014 Report

Investment Management

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.

Investment Returns to December 31

Endowment Report Chart 2013

Asset Allocation at December 31, 2013

Endowment Report Chart 2013

Income Allocation and Spending Policy

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.

Investment Committee

Douglas Greaves, HBA’72
Vice-President, Pension Fund & Chief Investment Officer
Canada Post

William Hewitt
Retired
William E. Hewitt & Associates

Rosamond Ivey, HBA’82
Managing Partner
JRS Group

James Knowles, BSc (Hons)’74, MBA’77
Vice-President Finance
Blackburn Radio Group

Rick Konrad, BA’75
Founder & Managing Partner
Value Architects Asset Management

Douglas Porter, BA’82, MA’84
Chief Economist and Managing Director
BMO Financial Group

Lee Sienna, HBA’74
Vice-President, Long-Term Equities
Ontario Teachers’ Pension Plan

David Stenason, BA’ 78
Managing Director
Rempart Asset Management

Martin Belanger*
Director, Investments
Western University

Gitta Kulczycki*
Vice-President (Resources & Operations)
Western University

Lynn Logan (Chair), EMBA’13*
Associate Vice-President (Financial Services)
Western University

*Ex-Officio
Degrees listed represent those granted by Western University

Endowment Statement: Glossary of Terms

Each endowment fund is managed through two accounts, a Capital Account and a Spending Account.

Capital 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.

Spending Account

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.

This article appeared in the 2014 edition of Endowment Report
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