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What is the Endowment?
The endowment is a balanced portfolio consisting of stocks, bonds, real
estate, venture capital and other investments. A portion of the total return,
which includes gains, losses and income net of expenses, is allocated annually
for spending to support the purpose of the fund. The University’s Endowment
Spending Policy, which has been created, approved and is overseen by Villanova’s
Board of Trustees, calls for an annual payout of 5 percent, calculated by using
an average of the market value of the fund for twelve quarters. Returns in
excess of 5 percent remain in the endowment to maintain the endowment’s
purchasing power.
The endowment is built principally by contributions from alumni, parents, and
friends. Donors may designate their gifts for specific priorities, such as
student scholarships, faculty chairs and professorships, academic centers,
athletic programs, and community outreach. The endowed funds established through
such gifts create a perpetual embodiment of the donor’s vision for Villanova’s
future.
How the Endowment is Managed
The endowment is managed through the investment committee of the University
Board of Trustees. The portfolio of diversified asset classes is managed using a
disciplined approach that involves thorough research and a long-term view of the
value of each investment.
For more information, the University's Financial Statements and Rating
Reports are available through the links below.
Why is the Endowment Important?
The strategic priorities supported through a strong endowment allow Villanova
to:
- Attract and support the best students and faculty
- Develop and implement innovative programs
- Establish and maintain a modern physical plant
- Increase bond market ratings
- Reduce independence on tuition revenue
- Provide a predictable level of funding
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