14 | The Endowment Campaign for Latin school of Chicago
Over the last 10 years, $22.7 million in new funds have been raised, $7.9 million has been spent on operations, and $13.1 million has been
earned from the invested fund balance. The balance of cash and endowment pledge receivables as of June 30, 2015 is $47.1 million.
Latin's Endowment
investment Philosophy
Latin's primary goal for its endowment is to achieve returns sufficient to sustain an annual
4.5 percent draw plus inflationary growth to maintain endowment's purchasing power over
time. is annual draw rate is consistent with best practices among endowments being
managed for sustainable growth.
• Carefully governed and professionally managed. e Board Investment Committee
oversees all investment activity, with advice and implementation from a professional
asset management consultant.
• Consistent and conservative. All investments are guided by a disciplined allocation
strategy with consistent targets and ranges.
• Diversified and directed. Endowment is diversified across asset classes as well as across
multiple managers within each asset class where possible.
Like similar laws in other states, the Illinois Prudent Management of Institutional
Funds Act mandates certain investment and payout practices designed to ensure that
endowments provide sufficient benefit to institutions' current stakeholders while
preserving long-term sustainability.
$35
$30
$25
$50
$45
$40
$20
$15
$10
$5
FISCAL YEAR
NET CHANGE BEGINNING BALANCE
05-06 06-07 07-08 08-09 09-10 10-11 11-12 12-13 14-15 13-14
$0
-$5
MILLIONS
Ten-year Endowment History
