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 2 a n d 2 0 2 1 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 experienced a decrease of 16.9 percent in fiscal 2022, compared to a return of approximately 34 percent in the prior year, based on changes in market conditions. The composite asset mix for the $157.2 million endowment fund as of June 30, 2022, was as follows: 0 50 100 150 FY 2021 FY 2020 FY 2019 FY 2018 FY 2017 FY 2022 200 $ $ $ $ $ POOLED ENDOWMENT GROWTH $105 $157 $115 $128 $132 $185 (in millions) Equities—31.1% Fixed Income Securities—20.8% International Equities—26.1% Alternative Assets—18.8% Cash—3.2% POOLED ENDOWMENT COMPOSITE ASSET MIX FY 2022 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, 2022, endowment net assets (including endowment-related pledges receivable) totaled $200.8 million, representing 19.3 percent of the university’s total net assets. The following chart shows the market value of the university’s pooled endowment fund has increased 50.1 percent in the past five years, from approximately $105 million as of June 30, 2017, to approximately $157 million as of June 30, 2022. 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 $0.8 million of receipts in transit to the pooled fund as of June 30, 2022. In addition, there was $3.6 million separately invested (pursuant to terms associated with an endowment grant program) as of June 30, 2022, that experienced a decrease of 4.4 percent in fiscal 2022. Endowment-related pledge receivables outstanding as of June 30, 2022 and 2021, were $39.2 million and $37.8 million, respectively. 6
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