Annual Report FY24

Management’s Discussion and Analysis June 30, 2024 and 2023 TOTAL CASH AND INVESTMENTS [1] (in millions, June 30) $ $ $ $ $ $ $688 $845 $894 $967 $537 $454 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 – 200 400 600 800 1,000 [1] Includes endowment and other restricted funds. Includes cash and investments categorized as Foundation assets prior to its dissolution in FY 2023. Includes net proceeds from bond issuances in FY 2020 of $12.9 million and FY 2022 of $148.6 million. POOLED ENDOWMENT FUND (in millions, June 30) $ $ $ $ $ $ $180 $157 $185 $132 $128 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 $213 – 50 100 150 200 250 POOLED ENDOWMENT FUND COMPOSITE ASSET MIX June 30, 2024 $213 million Equities 29% International Equities 22% Alternative Assets 29% Cash and Equivalents 6% Fixed Income 14% 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 donor’s philanthropic contributions to support the future of NSU students, has resulted in sustained growth for the endowment over time. At June 30, 2024, endowment net assets (including endowment-related pledges receivable) totaled $252.1 million, representing 20.8 percent of the university’s total net assets. The following chart shows the market value of the university’s pooled endowment fund has increased 67.0 percent over the past five years, standing at $213.4 million as of June 30, 2024. The long-term investment strategy, supported by a diversified asset mix, is designed to weather periodic market fluctuations as experienced in fiscal 2022. 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 11.7 percent in fiscal 2024, compared to 9.8 percent in fiscal 2023. There was $0.2 million and $0.1 million of receipts in transit to the pooled fund as of June 30, 2024 and 2023, respectively. In addition, there was $4.5 million separately invested (pursuant to terms associated with an endowment grant program) as of June 30, 2024, that experienced a return of 6.2 percent in fiscal 2024. Endowment-related pledge receivables outstanding as of June 30, 2024 and 2023, were $34.0 million and $41.2 million, respectively. 6

RkJQdWJsaXNoZXIy NDE4MDg=