At the University of Washington our mission promises to enhance lives everywhere— a goal that would simply not be possible without your endowed support. As lasting legacies, endowed gifts provide perpetual support for students, faculty, and university programs and services. They serve as the foundation upon which we build our success. While we can measure the endowment’s annual fiscal performance in this report, the impact that your gift will make in perpetuity is immeasurable.
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The University of Washington Endowment
Generous donors have created a lasting legacy
TOTAL ENDOWMENTS IN CEF
NEW ENDOWMENTS ADDED IN FY19
FY19 ENDOWMENT DISTRIBUTIONS
The impact is felt year after year,
generation after generation.
- UW Medicine 21
- Operating Funds 18
- Arts and Sciences 13
- Centrally Administered 8
- Engineering 8
- Foster School of Business 6
- Student Financial Aid 5
- All Other Programs 21
| Schools, Colleges, and Programs | Endowment Value at 6/30/19 | Number of Individual Endowments |
|---|---|---|
| UW Medicine | $761,950,444 | 1,019 |
| College of Arts and Sciences | 464,815,524 | 1,030 |
| College of Engineering | 297,401,304 | 451 |
| Foster School of Business | 201,959,806 | 255 |
| Student Financial Aid | 169,168,438 | 252 |
| Office of the President and Provost | 131,076,954 | 93 |
| Law School | 106,799,481 | 112 |
| College of the Environment | 115,580,060 | 303 |
| Intercollegiate Athletics | 87,085,898 | 224 |
| University Libraries | 51,712,727 | 104 |
| Graduate School | 51,442,612 | 92 |
| School of Nursing | 55,768,145 | 157 |
| Tacoma Campus | 48,247,990 | 86 |
| Undergraduate Academic Affairs | 55,487,657 | 37 |
| College of Built Environments | 46,847,851 | 134 |
| School of Dentistry | 35,150,364 | 100 |
| College of Education | 27,992,345 | 81 |
| Evans School of Public Policy & Governance | 23,714,756 | 41 |
| School of Pharmacy | 25,537,286 | 74 |
| Health Sciences | 18,293,883 | 5 |
| School of Public Health | 23,246,486 | 102 |
| School of Social Work | 29,406,360 | 51 |
| Office of Research | 8,836,545 | 4 |
| University of Washington Press | 7,260,212 | 17 |
| Information School | 8,005,734 | 55 |
| Bothell Campus | 5,001,772 | 29 |
| Office of Minority Affairs and Diversity | 6,288,979 | 46 |
| CoMotion | 11,734,229 | 2 |
| Finance and Facilities | 7,884,152 | 10 |
| Office of the Vice President of Student Life | 4,162,156 | 28 |
| Educational Outreach | 2,292,118 | 9 |
| University Advancement | 871,032 | 4 |
| 2,891,023,300 | 5,007 | |
| Operating Funds | 648,965,639 | 2 |
| Non-UW Endowment | 47,733,782 | 67 |
| Total | $3,587,722,721 | 5,076 |
Endowed gifts coupled with investment returns
resulted in the growth of the CEF.
ANNUALIZED RETURN OVER LAST 20 YEARS
IN GROWTH OVER LAST 20 YEARS
Impact
The impact of endowment gifts is evident in every corner of the University of Washington, from the inspiring faculty who hold endowed professorships to the extraordinary students that choose the UW because of scholarships and fellowships.
Endowment Support by Purpose
- Student Support 29
- Faculty Support 23
- Other University Support 23
- Program/Academic Support 18
- Research Support 7
Gifts at Work
Endowments create extraordinary impact across our campuses. These are just a few of the countless stories that philanthropy makes possible year after year, generation after generation.
Students
Distributed in 2019
Endowments
Faculty
Distributed in 2019
Endowments
Research
Distributed in 2019
Endowments
Programs
Distributed in 2019
Endowments
University
Distributed in 2019
Endowments
Investment Performance
For the fiscal year ending June 30, 2019 (FY19) the University of Washington’s Consolidated Endowment Fund (CEF) returned +5.8% versus +6.2% for the passive benchmark and +4.8% for the public university peer median. While relative performance generally lagged, absolute performance for FY19 was positive across all CEF strategies, led by Private Equity. Market conditions were volatile during FY19, particularly for international equities given their greater exposure to global trade and China's slowing economy. Our geographic positioning greatly impacted performance this year as the US continued its decade long bull run. US outperformance has been unusually prolonged and its continued outperformance relative to international equities is in question.
Our focus remains on long-term results where the CEF has consistently maintained solid relative performance. The chart below shows that the CEF has returned +6.7%, +8.9% and +7.1% for the 5, 10 and 20-year periods, respectively, and continues to outperform the passive benchmark. The UW is at or above median performance relative to public peers for all periods.
Investment Strategy
Asset allocation is critical to balancing the long-term potential return and the risk tolerance appropriate for the University of Washington.
The CEF asset allocation includes two clearly defined categories of investments: those which facilitate growth or appreciation (Capital Appreciation), and those which preserve endowment values (Capital Preservation). At June 30, 2019, 71% of the CEF was invested in Capital Appreciation and 29% in Capital Preservation. While our long-term strategy is to maintain an equity-oriented portfolio, we keep ample liquidity within Capital Preservation to meet the CEF's funding requirements, as well as to take advantage of market dislocations. UW is differentiated from peers by a larger allocation to public international equities, particularly emerging markets.
Spending Policy
A disciplined approach to moving money from the endowment to support the purpose designated by the donor on a foreseeable, consistent basis.
Spending policy for fiscal year 2019, set by the Board of Regents,
is based on the 5-year rolling average market value.
to support the program designated by the donors
to support Advancement activities (0.8%) and offset the internal cost of managing endowment assets (0.2%)
A good spending policy must strike a balance between providing a predictable and stable stream of revenue for current beneficiaries and maintaining the purchasing power of the revenue stream for future beneficiaries.
In 2019, the UW Board of Regents approved an amendment to the CEF spending policy to implement a reduction of the total spending rate. To cushion the impact, a 3-year stepped reduction is in effect. FY2020 will have a 4.9% spending rate (3.92% program distribution). For more information visit: https://finance.uw.edu/treasury/CEF/.
Power of Investment Returns
& Prudent Spending Policy
The generous $100,000 gift from William and Ruth Gerberding invested in 1996 provided a powerful impact distributing $150K in fellowship support and still having a market value of double its original value.
Further Information
If you have any questions or comments about this report, or would like copies of the Consolidated Endowment Fund investment policies, please contact:
Keith Ferguson
Chief Investment Officer
(206) 685-1822
invest@uw.edu
Robert Bradshaw
Associate Treasurer
(206) 221-6752
trsyops@uw.edu
For further information on the University's investment program, please visit:
http://finance.uw.edu/treasury/CEF
Endowment Giving
If you would like to receive information on how you can support the University's program, please contact:
Dan Peterson
Vice President for Development
University Advancement
(206) 685-1980
dcpeters@uw.edu
View & Download Annual CEF Reports for Prior Fiscal Years