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2018 Endowment Financial Report

Why Your Gift Matters Today and Tomorrow

We give our heartfelt thanks for your endowed gift.

Endowed gifts to the university are the reason why Ryerson continues to grow and gain prominence as a leading education centre for tomorrow’s creative thinkers, civic leaders and global citizens.  When you make an endowed gift to Ryerson, you are helping to sustain the university as a vibrant hub for education in the long-term, and more than that, you are investing in young people’s promise and potential to achieve excellence for years to come.

At Ryerson, “excellence” is as diverse as our student body and campus community. Within 10 entrepreneurial zones, young people are able to turn their creative ideas into actionable ventures. Across seven diverse faculties, students are encouraged to extend their learning and push beyond, supported by top-tier teaching staff and surrounded by state-of-the-art resources. At the heart of each young leader’s learning at Ryerson is a desire to make Toronto and cities around the world more equitable, inclusive and prosperous places to live. We’re here to ensure that it contributes to the abilities of our students and researchers to make an impact possible. With careful stewardship of your investment, we continue to give Ryerson a strong and sustainable future – together.

Enhancing the Present and Planning for the Future

Endowed gifts to Ryerson provide on-going and self-sustaining support to the university, vital to fulfilling our mission and vision.

To ensure endowments provide the same level of financial support to future generations of Ryerson students as they do to current students, all endowment funds are placed in a non-expendable, Ryerson Endowment Investment Pool (REIP) to earn investment income.  For a new endowment, expendable resources become available when the gift has been invested for a minimum of one full year.  This ensures the preservation of the principal, and the longevity of the endowment's impact.

Each endowment at Ryerson has an expendable account. The interest generated annually from the invested endowment becomes expendable and is allocated to the expense designated by the donor, such as students awards, scholarships, bursaries, research and more.  The spending level is a percentage of a three-year rolling average of the inflation-adjusted capital value of the endowment, a calculation authorized by the Ryerson Board of Governors.

To ensure the longevity and impact of each fund, interest earned above the spending allocation and rate of inflation is used to establish or contribute to a stabilization fund.  Each endowment has its own stabilization fund, which allows for year-over-year fluctuations in earnings by providing a reserve to be used if a fund does not earn sufficient income to cover inflation and the approved spending amount.  The maximum size of a stabilization fund is 15 percent of the inflation-adjusted value of the endowment.  When a stabilization fund reaches the 15 percent maximum, excess earnings are returned to the principal endowment account.

In the rare instance when the investment return is less than the rate of inflation plus the spend rate, and there are insufficient funds in the stabilization fund to meet the spending commitment, there will either be a delay in spending or, following approval by the Ryerson Board of Governors, the expenditure will be paid from operating funds. 

Endowment Fund at a Glance
Endowment Structure
Endowment Fund Performance in 2017-18
Investment Highlights
 
Where Investments Are Made
 
Asset Allocation (by $ value)
Portfolio Growth
 
 
Understanding Endowments at Ryerson

A: An endowment fund consists of a non-expendable pool of funds that earns investment income and grows at the rate of inflation.  Investment income earned on the endowment principal provides the financial resources needed to preserve the value of the endowment and fund the related spending commitments.

A: The book value represents the actual cash value of gifts received to date since the
inception of the endowment fund. The market value represents the combined value of all gifts to the endowment fund – and other increases, investment yields and gains or losses due to market fluctuations. Market value is based on the units held in each fund and represents their market value at a specific point in time.

A: Ryerson’s Board of Governors houses a dedicated Finance Committee, comprising a group of senior volunteers who bring vast experience in financial management from public and private industry. Together with the university’s External Investment Managers at Fiera Capital Corporation, we ensure that every investment you make is managed and stewarded strategically to maximize long-term impact.

A: The spending level is a percentage of a three-year rolling average of the inflation-adjusted capital value of the endowment, and is authorized by the Ryerson Board of Governors.

A: Fiera Capital invests the entire pool of Ryerson’s endowment funds into a mix of equities (56.6%) and bonds and securities (43.4%) in accordance with the university's Endowment Funds and Investments policies, approved annually by the Board of Governors. Ryerson’s investment portfolio is generally conservative while focused on high-quality companies that are predominantly environmentally responsible, socially ethical and practice good governance.

A: The interest earned above the spending allocation and rate of inflation on each investment is used to establish and grow a stabilization fund. Each investment has its own stabilization fund, allowing for year-over-year fluctuation in earnings and providing a reserve should an investment not earn sufficient income to cover inflation and the approved spending amount. The maximum size of a stabilization fund is 15 percent of the inflation-adjusted value of the endowment, with excess earnings returned to the principal and re-invested.

A: Yes you may add gifts of any amount to your endowed fund at any time.  Your gift will be added to the book value and will be recorded on your endowment statement the following fiscal year.

A: We would be pleased to provide you with an endowment statement at any time.  Statements are based on the previous fiscal year and are mailed out each fall.

For more information, please contact:

Rivi Frankle
Assistant Vice-President, Development
University Advancement
416-979-5312
rfrankle@ryerson.ca, opens in new window