Ma n a g eme n t ’ s D i s c u s s i o n a n d A n a l y s i s J u n e 3 0 , 2 0 2 3 a n d 2 0 2 2 Investment performance of the university’s pooled endowment fund was monitored by Crewcial Partners through June 30, 2021, and Prime Buchholz beginning July 1, 2021. The fund produced a return of 9.8 percent in fiscal 2023, compared to a decrease of 16.9 percent in fiscal 2022, based on changes in market conditions. The composite asset mix for the $179.6 million endowment fund as of June 30, 2023, was as follows: 0 50 100 150 FY 2021 FY 2023 FY 2020 FY 2019 FY 2018 FY 2022 200 $ $ $ $ $ POOLED ENDOWMENT FUND $157 $115 $128 $132 $185 $180 (in millions) Equities—28.8% Fixed Income Securities—15.6% International Equities—21.8% Alternative Assets—24.6% Cash—9.2% POOLED ENDOWMENT FUND COMPOSITE ASSET MIX FY 2023 Endowment The university’s endowment is a collection of gift funds and reserves that are set aside and invested primarily for scholarships. The solid investment strategy to preserve real purchasing power, and the university’s goal to maximize long-term total return and predictability of payout allocations, combined with donors’ philanthropic contributions to support the future of NSU students, has resulted in sustained growth for the endowment over time. At June 30, 2023, endowment net assets (including endowment-related pledges receivable) totaled $224.9 million, representing 20.2 percent of the university’s total net assets. The following chart shows the market value of the university’s pooled endowment fund has increased 56.2 percent in the past five years, from approximately $115 million as of June 30, 2018, to approximately $180 million as of June 30, 2023. The long-term investment strategy, supported by a diversified asset mix, is designed to weather periodic market fluctuations as experienced during fiscal 2022. There was $0.1 million and $0.8 million of receipts in transit to the pooled fund as of June 30, 2023 and 2022, respectively. In addition, there was $4.0 million separately invested (pursuant to terms associated with an endowment grant program) as of June 30, 2023, that experienced a return of 6.2 percent in fiscal 2023. Endowment-related pledge receivables outstanding as of June 30, 2023 and 2022, were $41.2 million and $39.2 million, respectively. 6
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