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2015 Report

Investment management

Western’s investment objectives are consistent with the permanent nature of endowed gifts: to generate sufficient return to annually fund teaching, research and scholarship 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 direct support of Western’s Investment Team and Russell Investments, an independent consultant.

Investment Committee

Martin Belanger
Director, Investments
Western University

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

William Hewitt
Financial & Investment Consultant
PanCanadian Technology Fund

Rosamond Ivey, HBA’82
Managing Partner
JRS Group

James Knowles, BA'72, BSc’74, MBA’77
Vice-President Finance
Blackburn Radio Inc.

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

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

Lynn Logan (Chair), EMBA’13
Associate Vice-President (Finance & Facilities)
Western University

Douglas Porter, BA’82, MA’84
Chief Economist & 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

Degrees listed represent those granted by Western University.

Asset allocation (at December 31, 2014)

Investment performance

Investment returns to December 31

Annualized return

Funds previously managed by Foundation Western received similar investment returns prior to 2014.

*Benchmark is a weighted factor of asset class policy weights and market index returns. It represents a passive investment alternative.

Endowment management

Fiscal 2015 was an exciting time for endowment management at Western. You will recall, last year Foundation Western merged with Western, creating a combined endowment of over $500 million. Since that time, Western and its students have benefited from greater operational efficiency and investment opportunities. Policy and process improvements will continue with the goal of adopting the best practices of both organizations.

Income allocation and spending policy

The total return earned by the endowment portfolio net of investment management costs is allocated proportionately to the capital of each endowment fund annually. For the period May 1, 2014 to April 30, 2015, the investment return, net of investment management costs of approximately 0.55 per cent, was 12.5 per cent.

An amount equal to 4.0 per cent of the capital balances averaged over the five most recent years is allocated for expenditure each year. The five-year average value is used to smooth the effect of market fluctuations. The allocation for expenditure is reflected as a transfer from the capital account to the expendable account on your fund report.

Balances in the expendable account are credited with interest income based on the 30-day Canada T-Bill rate, net of costs.

This article appeared in the 2015 edition of Endowment Report
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