SEPTEMBER 1, 2023 - AUGUST 31, 2024
ENDOWMENT REPORT
THANK YOU FOR YOUR INVESTMENT IN WATERFORD SCHOOL
The Endowment’s Legacy
Waterford School is deeply grateful to parents, alumni, alumni parents, grandparents and friends who support our endowment. Donors to the endowment leave a lasting legacy at Waterford, ensuring our financial strength, expanding our curricular and extracurricular offerings, and continuing to attract and retain exceptional faculty and students. During the 2023 - 2024 school year, earnings from the endowment supported critical needs at Waterford, including full scholarships for several well qualified students whose families faced the sole barrier of tuition and contributing towards our faculty taking part in over 100 professional development opportunities that have a direct impact on the classroom experience. Endowment gifts are invested in perpetuity, and a portion of the generated earnings is spent each year.
Investment Performance
15-year Annualized Rate of Return
Waterford’s endowment has shown strong growth over time. The value of the endowment has increased by almost $8M over the last ten years, from $2.30M as of August 31, 2014 to $9.96M as of August 31, 2024. Growing enrollment, diversified investments, generous giving by Waterford’s parents, alumni, and friends, and disciplined financial management have further enhanced the School’s financial strength. This success enables Waterford to finance critical needs and initiatives that further our role as a leader in education.
Endowment Designation by Purpose
Endowment History & Comparison
HISTORY OF WATERFORD ENDOWMENT
COMPARISON AMONG INDEX SCHOOLS
Investment Policy
Investment objectives are established by the Investment Committee of Waterford’s Board of Trustees. These investment policies are designed to manage the endowment’s assets so that the money available to spend in the future will have the same or greater value as it does today. The investment objective of the Endowment Fund is to achieve an annualized total return on investment at least 5% greater than the consumer price index.
Asset Allocation
Waterford deploys assets across a variety of strategies to maximize the likelihood of meeting long-term return objectives. Waterford receives guidance from our professional fund advisor.
Governance
The Investment Committee of the Board of Trustees is responsible for oversight and governance of the endowment portfolio. The committee meets regularly to review policies, performance, and opportunities. The committee utilizes an independent investment advisor that helps ensure the school’s investment policies are sound. Waterford’s CFO is responsible for advising the committee on policy matters and for implementing the approved investment policy.
Spending Policy
The fundamental objective of the endowment’s spending policy is to provide a stable level of support for current operations, while ensuring long-term stability and growth of the endowment principal. The portion of endowment earnings made available for spending each year is based on anticipated needs for program support and projections for investment earnings and inflation. Spending policies are approved by the Board of Trustees and are subject to change.
For additional information on Waterford’s Endowment or your specific fund with the School, please contact the Office of Development at 801.816.2217