Foundation Western2012/2013 Annual Report to Donors

2012/2013 Annual Report to Donors

Dear Donor,

As the day comes closer to my graduation from the Schulich School of Medicine & Dentistry, I’m truly grateful for all of the experiences that have shaped my desire to practise family medicine in small rural and remote communities. The generous support I’ve received from the William Jeffery Scholarship* has made some of these learning experiences possible.

I had the privilege of participating in a variety of medical electives, including spending time in Bella Coola, a small town in northern British Columbia, and in a rural village in India. Through these opportunities, I was able to see how medicine is practised in remote areas – a great training ground to learn the diversity of medical care and see the different perspectives of people. As well, I’ve volunteered with a local hospice, learning what it means to provide relevant care and companionship for patients who are nearing the end of their life.

All of these experiences offered fresh insights to learn not only the facts of medicine, but also how culture and relationships affect people’s health.

I’m proud and truly grateful to be the recipient of your generous award. You have provided me with resources to participate in

learning experiences, which have expanded my knowledge beyond the science of medicine, and taught me to balance my life in a way that’s both scholastic and enriching.

Soon, I will start my medical residency in Sioux Lookout, northern Ontario, which will provide a range of experiences that will equip me to become a better physician and a more well-rounded individual. I’m also applying to family medicine programs and plan to pursue emergency medicine training.

Thank you again for your support. You, along with many other donors, are equipping and preparing Western students to become extraordinary leaders.

Sincerely,

Aaron Rothstein, MD’13Schulich School of Medicine & DentistryRecipient of the William Jeffery Scholarship

* Established in 2000, the William Jeffery Scholarship grants $1,200 annually to support an undergraduate student in the Doctor of Medicine (MD) program based on academic achievement.

A thank you from a Western student

Learning to be a better family doctor

“You have provided me with resources to participate in learning experiences, which have expanded my knowledge beyond the science of medicine, and taught me to balance my life in a way that’s both scholastic and enriching.”

Aaron Rothstein, MD’13

Foundation Western was created by Western alumni in 1979 to raise and invest funds to support Western. The role of philanthropy and endowment management has changed remarkably since then. The Foundation Board has a fiduciary duty to donors and beneficiaries to continue to steward donor funds as efficiently and effectively as possible. With that in mind, Foundation Western and Western University have agreed to unify management of the endowment assets of both organizations.

While there are many details to work through, we can assure you of our commitment to preserve the values and principles that have guided Foundation Western for more than three decades. Unification, expected to unfold over two years, will build on our past success and allow the best practices of both organizations to be adopted for all endowment funds.

Creating extraordinary opportunities

Looking Ahead

foundation.uwo.ca

“Our priority is to ensure your gift is invested wisely to maximize the support Western receives from endowments.”

Richard J. Kohn, BA’69President, Foundation Western

Thank you for your generous contribution to Foundation Western. Through your support, we have been able to help Western prepare the next generation of leaders who will tackle some of the world’s most pressing social, medical, scientific, political and cultural issues.

Your gift has benefited students, such as fourth-year medical student Aaron Rothstein, who is preparing to become a family doctor in a remote community. You have also inspired kinesiology student Malcolm Brown to become a teacher and coach, and supported graduate engineering student Adnan Hossain Khan in his commitment to work toward a pollution-free world. These are just a few examples of how your generosity is providing opportunities for our students to be extraordinary leaders.

Built on the legacy of support from Western alumni, the Foundation has granted more than $85 million to the University, its students and its faculty since inception. Today, we manage more than $198 million, of which $11.26 million in new gifts were received during the fiscal year 2012-13. Through the year, we provided more than $6 million for student awards, professorships, research chairs and academic programs, including the newly established School for Advanced Studies in the Arts and Humanities.

Our priority is to ensure your gift is invested wisely to maximize the support Western receives from endowments. We are also committed to keeping you informed about the overall performance of our endowed funds. Enclosed you will find a financial statement specific to the funds that interest you, as well as information about the Foundation’s endowment and its impact on students, faculty and researchers.

Thank you for the confidence you have shown in our Board and Committee volunteers, who provide prudent financial advice to manage funds wisely and advance stewardship excellence.

Together, we share a passion to empower future leaders and curious minds to pursue the extraordinary at Western.

Sincerely,

Richard J. Kohn, BA’69President, Foundation Western

Foundation Western is currently governed by a 10-person Board of Directors, all of whom are Western alumni. We also rely on Committee volunteers, several of whom are Western alumni as well. We thank our Board and Committee volunteers for their commitment and dedication – they are essential members of our team. As of April 30, 2013, the Board includes the following members:

Committee Members Staff

Board of Directors

Paul Knill, LLB’73PartnerSiskinds LLP

Richard J. Kohn, BA’69PartnerMarcus & AssociatesChartered Accountants

David Stenason, BA’78 Managing DirectorRempart Asset Management

Stephen Bolton, MBA’07 President & CEOLibro Financial Group

Gary West, BA’68Senior Manager (Retired)RBC Royal Bank

Shelley Baker, BSc’87President Richard and Shelley Baker Family Foundation

Walid Busaba, PhD’95 (Boston College)Associate Professor Western University Ivey Business School Jerome Cohen, HBA’76Senior Vice-PresidentNational Bank Financial Jim Etherington, BA’61Communication Consultant (Retired)

Chuck Grace, BA’80Management ConsultantFusion Consulting Nancy Harris, MBA’82 (McMaster)Senior Vice-PresidentGLC Asset Management Group Lori Higgs, BA’98Vice-President, Corporate Services and Chief Financial OfficerSt. Joseph’s Health Care London

Tom Jolliffe, BA’78Chief Executive Officer (Retired) London Civic Employees’ Credit Union Jim Knowles, BSc’74, MBA’77Vice-President, FinanceBlackburn Radio Inc. Mike Peters, BA’95Portfolio ManagerMGI Securities

Frank Pyka, CMAExecutive Director Kathryn McAuley Stewardship & Compliance Officer Kristen RosehartStewardship & Communications Associate Donna SwansonAdministrative Assistant Karla Szauter, CA, CGA Director of Finance Dawn Vanhie Accounting Officer

Foundation Leadership and Staff

2012/2013 Annual Report to Donors

Carol-Lynn Chambers, BSc’82, MPA’01 Operations Manager Fire Protection Services Office of the Fire Marshal

C. Bruce Hill, MCID’90OrthodontistBHG Orthodontics

Christene Scrimgeour, BA’81Chartered AccountantScrimgeour & Company

John Prueter, MBA’97Managing Partner NPT LLP

foundation.uwo.ca

Chairs & Professorships24.31%

Student Awards44.88%

Discretionary10.50%Academic Enrichment

8.32%

Other Initiatives7.70%

Research4.29%

2013 Grants

Financial Highlights April 30, 2013 (unaudited)

Operating Expense Ratio*

1.42%

1.18% 1.26% 1.20% 1.05%

1.00%

0.00%

0.25%

0.50%

0.75%

1.00%

1.25%

1.50%

1.75%

2.00%

2007 2008 2009 2010 2011 2012

Operating Expense Ratio

Target Ratio**0.98%

2013

To view a complete version of the audited financial statements, visit foundation.uwo.ca

*Operating expenses as a percentage of average assets under management ** Target ratio as of fiscal 2012

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

200

180

160

140

120

100

80

60

40

20

0

$153

mill

ion

$91

mill

ion

$100

mill

ion

$116

mill

ion

$139

mill

ion

$ M

illio

ns

$147

mill

ion

$129

mill

ion

$173

mill

ion

$174

mill

ion

$198

mill

ion

“Discretionary funds give the Foundation Board and Executive Director the ability to address the University’s most urgent needs in a meaningful way. Last year alone, the Foundation Western Discretionary Fund granted more than $250,000 to help build Western’s legacy.”

Richard J. Kohn, BA’69President, Foundation Western

Assets

Donations

Grants

Operating Expenses

$198,147,634

$11,258,599

$6,036,139

$1,820,268

2013 at a Glance

Investment Management

The investment objectives of Foundation Western are consistent with the permanent nature of endowed gifts: to generate sufficient return to annually fund scholarships, research, and other academic programs at Western and to maintain capital value over time.

The financial and investment operations of Foundation Western are under the direct supervision of the Foundation Board of Directors. Investment policy and manager selection recommendations are functions of the Investment Committee in coordination with an outside independent consulting firm hired as an advisor to assist in the process. The invested funds are managed by professional money managers whose performance is reviewed quarterly by the Investment Committee.

Spending Policy and the Income Stability Fund

A consistent annual spending allocation is maintained for each endowment independent of the actual investment return. This ensures that scholarships can be awarded every year, research can continue uninterrupted, and other program funding is sustained. This allocation is currently 4.0% of endowed capital.

To maintain this consistent annual spending allocation, the Foundation has an Income Stability Fund. This fund is a feature of Foundation Western’s endowment model. The Fund accumulates revenue in years where investment returns exceed funding requirements. The surplus is then used to meet spending requirements in years where income falls short. The balance in the Stability Fund at April 30, 2013 was $17.5 million, representing 8.9% of invested assets.

Capital Preservation Policy

Each year, the Board determines an allocation to capital to maintain the real long-term value of the endowments. Consideration is given to inflation, market returns, the Income Stability Fund balance, and prior years’ allocations. The Board approved an allocation of 0% for the fiscal year ended April 30, 2013.

Operating Allocation

An operating allocation equal to 1% of assets or less is made each year from investment income to support operations.

Endowment Investments

* 2010 - 2012: S&P/TSX Composite for Canadian Equities, MSCI World ex-Canada ($C) for Global Equities, DEX Universe Bond for Bonds. Benchmark varied in prior years according to asset mix policy in effect year to year.

2003 2008 2005 2011 2004 2010 2007 2009 2006

20%

16%

12%

8%

4%

0%

-4%

-8%

-12%

-16%

-20%

Portfolio return

Benchmark* return

Investment Returns to December 31 Investment Asset Mix and Managers

9.6%

11.1

%

8.4%

8.4%

8.4%

9.3%

9.6%

12.4

%

12.5

%

0.8%

-0.2

%

-16.

0%

-17.

1%

16.0

%

15.7

%

-2.4

%

10.3

%

10.6

%

10.3

%

For more information on Foundation Western’s investments, visit foundation.uwo.ca

Fixed Income Equity

Asset Class Bonds Short Term Canadian Global

Style Active Passive Active Active

Asset Mix Policy 34.0% –% 33.0% 33.0%

Actual at Dec 31, 2012 31.0% 2.0% 34.0% 33.0%

Manager TDAM UBS Mawer JP Morgan

2012/2013 Annual Report to Donors

2012

-0.2

%

Thank you from students and faculty

Foundation Western Western University Westminster Hall, Suite 110 London, ON N6A 3K7 Canada

t. 519.661.3140 f. 519.661.3620 e. fw@uwo.cafoundation.uwo.ca

“Receiving this scholarship means so much to me. I work day in and day out to achieve my goals, and it really feels as if all my hard work has paid off. This scholarship also validates where I am meant to be – at Western with so many amazing experiences that are contributing to my success.”

Kellie Anderson, Media, Information & Technoculture student Recipient of the Dr. P.C. (Raju) and Jyoti Shah Student Scholarship

“A generous bequest to the Foundation is making it possible for us to support the first cohort of students enrolled in the School for Advanced Studies in the Arts and Humanities. This program – the first of its kind in Canada – will draw on the creative potential of the arts and humanities to prepare our students to be the next generation of engaged citizens, problem solvers, decision makers, and leaders in their local and global communities.”

Michael Milde, Dean, Faculty of Arts & Humanities

“Working with people and trying to help them has always been a goal for my career. That is why I would love to be a teacher and coach. I want to give back to the community because my own community gave me a great deal. I will never forget that.”

Malcolm Brown, Kinesiology student and Mustang football player Recipient of the Larry Haylor Recruitment Scholarship

“As a result of contributions to the Foundation, we conducted research into the experiences of nursing students involved in local community settings. They worked with community members to identify health issues and developed plans to address these issues as a neighbourhood. Based on students’ contributions, we will develop a model of best practice for educators who want to undertake similar experiential learning.”

Yolanda Babenko-Mould and Karen Ferguson, Faculty of Health SciencesRecipients of the Fellowship in Teaching Innovation

“I’m pleased and grateful to receive The Ross and Jean Clark Scholarship, which inspires me to continue my research in environmental engineering. With the support I’ve received from the scholarship, I feel more and more committed to working toward a pollution-free world.”

Adnan Hossain Khan, Engineering PhD student Recipient of The Ross and Jean Clark Scholarship