Endowment Management
According to University procedures, endowment funds are pooled and
distributed to meet as many student financial needs as
possible. The Board of Trustees determines the University’s
investment strategy and endowment management policies, which may be
amended from time to time at the University’s discretion, to
further the educational and fiscal goals of the Endowment Fund and
the University.
The Endowment Fund is provided through assorted and various
established scholarship funds. Also known as the General
Scholarship Fund, the fund is sustained through the principal
amounts of the different scholarship funds. A “principal” is the
principal of an investment, as opposed to the interest or income of
an investment. St. John’s University requires a minimum principal
investment of $50,000 to endow a fund. The principal of endowment
funds are held in perpetuity, and are invested and reinvested as
part of the general investment funds of the University. The
expendable portion is the interest or income of an investment,
which is available for scholarship awards annually. The
expendable annual income rate of five percent is calculated based
on a three-year moving average of the market value of the
principal, and may change each year as determined by the Board of
Trustees. The investment objective for these endowments is to
continue to increase the annual scholarship awards over time.
Glossary
Earnings Available for Spending/Annual Income
Allocation
This is the income allocated at the close of the fiscal year and
will be used for scholarships in the following academic year.
This is calculated on the three-year moving average of the market
value of the principal balance. The rate used to determine
the allocation is currently five percent and may change each year
as determined by the University’s Board of Trustees.
Expendable Fund Value
Represents the cumulative funds available to be awarded for the
designated purpose. This is the income allocated to use for
scholarships.
Overall Investment Portfolio
Performance
This graph depicts the net rate of investment return earned by the
endowment fund for one year, three year, five year and ten year
periods as of May 31, 2010. St. John’s portfolio performance
has exceeded the broader equity markets over the long term.
The investment performance of your particular endowment may vary
from these rates of return based on the timing of your gift(s)
during the year.
Principal Fund Balance Value
Represents the funds donated for the purpose of funding the
scholarship. These funds cannot be spent.
Principal Market Value
Represents the market value of the principal balance as a portion
of the University’s investments.
Scholarship Awards
Represents the total scholarship awards made between June 1st and
May 31st of the fiscal year.