Endowment Expenses

Endowment Expenses                                                           March 2013

The endowment fund incurs expenses related to the management and safekeeping of assets. Investment management fees are paid for portfolio management and these fees make up the most significant portion of overall expenses.

 

The total investment management fees paid in 2013 was $2,070,000 or 0.53% of the average market value of the fund over that period.

 

The total expenses of the fund in 2013 were $3,066,000 or 0.79% of the average market value of the investments for the year.

 

Overall, compared to similarly sized endowment funds and foundations, the fee structure is favourable, and the trustees are committed to ensuring that controlling costs is an important objective in the decision making process.

 

Endowment expenses include:

  • Payment of custodians for the safekeeping and accounting of shares held in segregated portfolios.

  • Performance measurement fees to provide third-party analysis of our portfolio as compared to our contemporaries across the country.

  • Performance analytics to help track each of the three equity investment managers and allow trustees to determine if these firms are managing the portfolios consistently and in compliance with their investment philosophies and processes.

  • Internal administrative fees to help support the few individuals that work with the endowment on a daily basis, and also support some of the fundraising activities that grow the endowment fund.