MANHATTAN — Despite a turbulent financial climate in fiscal year 2022, the Kansas State University Foundation’s investment returns ranked No. 7 among the nation’s higher education endowments and affiliated foundations. The KSU Foundation’s investment team posted a positive 5.72% return in the Long-Term Investment Pool, or LTIP, while endowments overall posted an average return of -8%.
These findings were released in February in the 2022 NACUBO-TIAA Study of Endowments, the preeminent analysis of the financial, investment and governance policies and practices of the nation’s higher education endowments and affiliated foundations. This year’s study reflects the responses of 678 institutions and covers the fiscal year — July 1, 2021, to June 30, 2022.
K-State’s LTIP is managed by the KSU Foundation and serves as the investment vehicle for the university’s endowed funds. During the last 10 years, LTIP has frequently achieved top-quartile performance, with its value almost tripling from $328.4 million in fiscal year 2012 to more than $912 million in fiscal year 2022.
According to Senior Vice President of Investments and Chief Investment Officer Lois Cox, donors make a positive impact on K-State when they designate their donation so that its principal remains intact and grows forever.
“Fiscal year 2022’s year-over-year growth was a result of the generous contributions of K-State donors and the 5.72% return earned on investments,” said Cox. “The investment income from permanently restricted gifts supports excellence at K-State, both now and for future generations. In FY22, our 4,000 endowed funds distributed more than $26 million to K-State in support of each fund’s purpose.”
Overall, investment performance for college and university endowments dipped sharply in fiscal year 2022. Yet endowments across the country reported providing $25.85 billion in fiscal year 2022, with the largest percentage of spending supporting student financial aid.
Since fiscal year 2020, the KSU Foundation has increased scholarship dollars made available to campus by 24%, thanks to a combination of outright cash gifts and distribution of endowed funds.
“Thanks to our donors and partners, we have a long-term investment pool that serves as a source of reliable revenue to supplement the needs of K-State’s bold mission,” said Greg Willems, president and CEO of the KSU Foundation. “Having one of the nation’s top-performing endowments further amplifies the impact of our existing donors’ gifts and earns the trust and confidence of other donors to establish funds that will benefit future generations of Wildcats “