Endowment Report

SMU's endowment was aided by strong global financial markets during the fiscal year. Market value increased by $121.3 million, reaching $1.2 billion as of May 31. Generous donors contributed $14.9 million in new gifts, which signals the confidence and faith in SMU that supporters continue to show. Endowment distributions of $57.9 million provided significant support to University operations and accounted for 17 percent of the operating revenue budget. Through this spending support, multiple restricted and unrestricted purposes such as scholarships, educational programs, faculty support and libraries were funded.

The total return for the endowment for the one-year period ending May 31, 2011, was 13.2 percent. All asset classes contributed positively to performance. The endowment comprises a diversified portfolio of U.S. and international equity, fixed income, multiple diversifying strategies, private equity, venture capital, real estate and energy.

The financial markets have recovered significantly from the downturn experienced during the 2008-09 fiscal year. However, those markets have demonstrated volatility, and the environment continues to test and challenge investors. Slowing global growth, fiscal issues in the U.S. and Europe and geopolitical events are concerning. SMU remains focused on investment strategies and opportunities that enable the endowment to meet its long-term goals. This, in turn, provides support for SMU's programs and priorities in the future.