Financially speaking, 2008-2009 was one of the most difficult years in history. The stock market fell at levels that had not been seen since the Great Depression. This downturn in the economy had a significant impact on the Wabash College Endowment.   

 

The value of the pooled endowment at June 30, 2008 was approximately $345 million. That was down from a high of $391 million in September 2007. The value of our endowment continued to drop through March 2009 when we reached a low point of $227 million. The market rebound of the second quarter had our endowment back up to $252 million by June 30, 2009. The Investment Committee of the Board of Trustees was very active in monitoring our investments during that period of time and believes that our investment strategy is a sound one for the long haul.

 

The financial highlights for the year ended June 30, 2009 are included on a page entitled Financial Statement located at the end of this letter. You will note from this statement that of the $25.74 million we receive in tuition and room and board revenues, we fund $12.93 million of scholarships and financial aid to offset these charges. This represents an average discount rate of approximately 55% of tuition.

 

It should also be noted that Investment Income of $20.74 million represents 45% of the total revenues. This represents a drop of $610,000 from the previous year. This reduction in Investment Income will be something that will be an annual occurrence for the next few years, and we will need to adjust our operating expenses to deal with this loss of revenue.

 

Total gifting revenues used for operations were in excess of $10.42 million. The Annual Fund contributed in excess of $3.1 million of gifting revenue, exceeding the previous year record of $3.098 million. In this economic environment, this is a phenomenal feat that demonstrates the loyal commitment of the alumni and friends of Wabash College.

Thank you once again for your continued support of the men of Wabash College.

 

Sincerely,

 

Larry Griffith

Treasurer & Chief Financial Officer