MOA has four main endowments/trusts that have invested assets worth $138.4M as of July 31, 2012.-- MOA is unable to continue to take unsustainable draw rates from its Endowment.
The value of the endowment’s assets is $61.2 M as of 7/31/12
The first funds raised for the endowment were in the 1960s with matching funds from the Ford Foundation.
In 2010, a new independent investment consultant, Cambridge Associates, was hired to manage the portfolio.
The value of the Building Fund’s assets are $7.7M as of 7/31/12
The fund is used to support the operating costs of the building, and to service the $1.69M outstanding debt for the last hallrefurbishment in 1997.
Draw 6% of net value after subtracting $1.69M debt from last fiscal year average market value.
The value of the Oakleaf Trust is $57.3M as of 07/31/12
The Trust is governed by a trust document and administered by five trustees appointed by MOA.
MOA receives an annual distribution from the Trust, calculated by the Yale draw formula. Which is 70% of prior year’s draw plus1.5% of YE December 31
market value. 10% penalty for each year not in financial equilibrium.
Average draw rate the last five years was 4.3%
Established Building for the Future Endowment for new endowment donations. It is managed under bylaws of Oakleaf Trust. Valueof $8.1M as of 7/31/12. There is $3M more pledged. Goals is to raise $20M by F2015.
St. Paul Foundation
The value of the St. Paul Foundation Trust is $1.2M as of 7/31/12
The St. Paul Foundation pledged $250K in a matching grant to the new endowment campaign in the 1990s.
Foundation reports to MOA quarterly on the value and makes a distribution once a year as a draw.
Average draw rate the last five years was 4.8%1