Endowment Annual Report

CC’S ENDOWMENT PERFORMANCE

A Report from the Vice President for Finance and Chief Financial Officer

Dear Friends of Colorado College,

Each year, we rely on our endowed funds to provide meaningful and valuable support to the college. Your generosity and the careful investment of these funds ensure the endowment continues to fuel opportunities for current and future students.

As of June 30, 2023, the final day of our most recent fiscal year, the college’s diversified endowment investment portfolio produced a positive 10.5% net annual return. Over the last decade, CC’s endowment has earned an average return of 8.3%. Compared to a 70% equity/30% fixed income benchmark, the endowment’s return compares favorably with the one-year benchmark at 8% and the 10-year benchmark at 7.4%.

The college currently provides an annual payout equal to 5% of each endowment’s calculated value (with 5% of the payout amount subtracted as a surcharge for the endowment’s management and related expenses). This payout is made possible while maintaining the inflation-adjusted market value of CC’s endowment. At the end of the most recent fiscal year, the market value of our endowment and perpetual trusts totaled $918 million, and produced a $40.5 million payout. Combined with receipts of annual operating gifts, this provided 19% of CC's yearly budget.

We are grateful for your continued commitment to CC. Here, at this exceptional place, we produce leaders who dare to envision and craft a better tomorrow. Thank you for your long-term investment in our mission to provide the finest liberal arts education and for the impact you are making on our students and campus.

Sincerely,

LORI SEAGER
Vice President for Finance and Chief Financial Officer

COMPARATIVE DATA TOTAL RETURNS

Endowment and Perpetual Trusts

U.S. COLLEGE & UNIVERSITY AVERAGE ANNUAL RATE OF RETURN

*Colorado College’s endowment is in this group.
Source: National Association of College and University Business Officers (NACUBO) 2022 Survey

CC’S ASSET ALLOCATION

HOW COLORADO COLLEGE MANAGES ITS ENDOWMENT

The college’s endowment is overseen by the Colorado College Board of Trustees Committee on Investments in accordance with college policy, Unified Prudent Management of Institutional Funds Act, and the rules of prudence. The committee seeks superior investment returns through strategic asset allocation and professional investment management. The committee, through its partnership with outsourced CIO Partners Capital Investment Group, monitors the 62 external investment firms that manage the college’s assets.

HOW SPENDABLE INCOME IS CALCULATED

The college’s Board of Trustees develops a spending policy that balances the current needs of the school with the prudence of saving for the future. The policy, a subsection of the Endowment Investment Policy, defines how spendable income is calculated for the college’s overall endowment portfolio. The current spending rate is five percent of the 12-quarter trailing average market value as of the prior December 31, with the change from year to year capped at five percent up and one percent down. This yields the total amount of spendable income from the college’s overall endowment portfolio. This amount is then allocated to each individual fund as a pro rata share. Of the pro rata share, five percent is then subtracted as a surcharge for the endowment’s management and related expenses, and the remaining balance is available as spendable income for the fund’s designated purpose for the next academic year.

COLORADO COLLEGE FISCAL YEAR 2023 ENDOWMENT AND PERPETUAL TRUST SPENDING

ENDOWMENT PER STUDENT

How Colorado College Stacks Up to Peer Institutions (Fiscal Year 2022)

*The endowment per student is the overall endowment as reported by the National Association of College and University Business Officers (NACUBO), divided by the number of undergraduates cited in the Common Data Set.
**Source: NACUBO 2022 Survey