Return on investments for the Wichita State University Foundation was -20.9 percent after a tumultuous year running from July 1, 2008 and ending June 30, 2009. After the downturn in the economy, the foundation is on the upswing for the new fiscal year.

According to an article in The Wall Street Journal on June 30, the five largest single-school endowments, which include Harvard, Yale, Stanford University, Princeton University and the Massachusetts Institute of Technology, are planning for -25 percent to -30 percent for the fiscal year.

The WSU Foundation investment returns have been better than the benchmark four out of the past five years. Returns also beat the benchmark five-year annualized return.

In an effort to prepare the best investment strategy possible, the foundation’s investment committee began a monthly investment review in January. The committee closely monitors current market conditions, reviews the foundation’s current investment mix, considers its outside advisers’ recommendations and formulates tactical moves.

Payouts

The payout amounts for each fund are communicated to university personnel in October of each year for the following academic year. This process allows faculty and staff members, including the deans and scholarship coordinators of each college, to meet financial aid deadlines and to begin planning budgets. For the current academic year beginning in August, the WSU Foundation Board of Directors reduced the payouts by 20 percent.

The only exception is to honor scholarships that were made as four-year awards. In consideration of the reductions in payout from endowed funds as well as nonendowed private contributions, the anticipated support from the foundation for FY10 will be $14.7 million.