KANSAS STATE UNIVERSITY FOUNDATION Board … STATE UNIVERSITY FOUNDATION. Board of Trustees ... • Organizational structure changes in August ... US Equities $54,379,560 11%
45
KANSAS STATE UNIVERSITY FOUNDATION Board of Trustees Annual Meeting October 9, 2015
CURT FRASIER Good morning, and welcome to the annual meeting of the KSU Foundation Board of Trustees. My name is Curt Frasier and it’s my honor and privilege to serve as chairman of the Board of Trustees. I’m very happy to welcome you to the fall meeting, and we are delighted to have over 350 trustees and guest with us today. To change things up a bit this year, we will start off with official business – the re-nomination of current trustees, election of new trustees and re-nomination of the Board of Directors Class 2 members. However, before we get started, I would like to remind all trustees to sign your roll call card and return when leaving the meeting.
Board of Trustees re-nominationsHugo Dahlstrom
Neisha Dahlstrom
Duke Dupre
Helen Dupre
Howard Erickson
Dave Everitt
Ellie Everitt
Barry Flinchbaugh
Nancy Blackwell
Kathy Borck
Lee Borck
Nadalie Bosse
John Carlin
Lynn Carlin
Charlie Chandler
Randy Coonrod
Bruce Adams
Jan Adams
Gail Antenen
Kyle Antenen
Thane Baker
Andrew Bell
John Berschied
John Blackwell
Presenter
Presentation Notes
CURT: THERE ARE THREE SLIDES OF TRUSTEE RE-NOMINATIONS. Let’s start with our trustees who are being re-nominated. The names are listed alphabetically and here’s the first of three slides. As members of the KSU Foundation Board of Trustees, you are the premier advocates, ambassadors and investors providing the living leadership example for the entire K-State family. You are looked at by K-State alumni as iconic examples of leadership, service and stewardship for the prosperity of K-State. We THANK YOU for all you have done and continue to do for K-State!
Board of Trustees re-nominationsSteven Hodes
Don Hoffman
Gretta Hoffman
Rae Iman
Ron Iman
Cheryl Lockett
Kevin Lockett
Joe Miller
Terry Harbert
Allan Harms
Carolyn Harms
Barbara Harris
Lee Harris
Dana Hauck
Marcia Hauck
Colleen Hodes
Cathy Flinchbaugh
Curt Frasier
Sherry Frasier
Jeff Gates
Nick Golden
Susan Golden
Jim Grier
Paula Harbert
Presenter
Presentation Notes
CURT FRASIER PLEASE STAND AND BE RECOGNIZED AS A GROUP.
Board of Trustees re-nominationsRich Teichgraeber
Steve Theede
Marty Vanier
Byron Warta
Marjorie Warta
Mark Whitehead
Don Wilbur
Lee Reeve
Roy Robinson
Sylvia Robinson
Rhea Serpan
Gerald Shadwick
Paul Stephenson
Bill Stolzer
Chuck Munson
Deanna Munson
Larry Nettles
Jan Pishny
Lyle Pishny
Don Rathbone
Brenda Reeve
Presenter
Presentation Notes
CURT FRASIER PLEASE STAND AND BE RECOGNIZED AS A GROUP.
Board of Trustees emeritus statusJeannine Shadwick
Donna Vanier
Jack Vanier
Darrell Westervelt
Elaine Jacobson
Mike Jacobson
Aaron Morrison
Kevin Schinze
John Allen
Bob Campbell
Nancy Coulter
Roger Coulter
Presenter
Presentation Notes
CURT FRASIER The individuals on the screen have elected emeritus status this year. We also have other emeritus trustees with us today, so I’d like to ask all emeritus trustees to stand. Your dedication, leadership and support for K-State and the Foundation, through your years serving as a KSU Foundation trustee, has demonstrated to the entire K-State family your devotion and dedication to our University. Please join me in thanking them for their many years of service!
Board of Trustees new nomineesKen Selzer
Dennis Shurtz
Carolyn Silvius
Terry Silvius
Sharon Taylor
Tim Taylor
Jerry Westhoff
Robin Westhoff
Jackie Hartman Borck
Gabe Hernandez
Debra Houghton
Keith Houghton
Mary Lynn Manning
Arman Miller
Tom Moxley
Virginia Moxley
Aaron Otto
Liz Barclay
Lyndsey Barclay
Marla Chandler
Nancy Siepman
Jacquelyn Cowan
Mark Cowan
Alysia Dempsey
Ray Dempsey
Deb Grimes
Presenter
Presentation Notes
CURT FRASIER PLEASE WELCOME OUR NEW TRUSTEES! Recognizing their leadership qualities and commitment to Kansas State University, these individuals are recommended to you as trustee nominees. Will you all please stand as I call your name: Liz Barclay, Lyndsey Barclay, Marla Chandler, Nancy Chiou-Siepman, Jacquelyn Cowan, Mark Cowan, Alysia Dempsey, Ray Dempsey, Deb Grimes, Jackie Hartman Borck, Gabe Hernandez, Debra Houghton, Keith Houghton, Mary Lynn Manning, Arman Miller, Tom Moxley, Virginia Moxley, Aaron Otto, Ken Selzer, Dennis Shurtz, Carolyn Silvius, Terry Silvius, Sharon Taylor, Tim Taylor, Jerry Westhoff and Robin Westhoff. We are honored to welcome you to this group! Please note new trustees will be wearing a light purple colored ribbon with their name badge. Please take the time to introduce yourself and welcome them to the family!
Board of directors 3-year election
Board of Directors eligible for election to three-year term:
• Jan Burton
• Dave Everitt
• Kelly Lechtenberg
• Charlene Lake
• Mary Vanier
Presenter
Presentation Notes
CURT FRASIER The following members of the Board of Directors are eligible for re-election to 3-year terms. Will you please stand as I call your name: Jan Burton, David Everitt, Kelly Lechtenberg, Charlene Lake, and Mary Vanier. Thank you for your continued service!
Nominating Committee motion
The recommendation of the Nominating Committee is to approve and ratify the following:
• Class of 2015 re-nominations
• Emeritus requests
• New Board of Trustee nominees
• Class 2 Board of Directors
Presenter
Presentation Notes
CURT FRASIER The recommendation of the Nominating Committee is to approve and ratify: *Class of 2015 re-nominations *Emeritus requests *New Board of Trustee nominees *Class 2 Board of Directors Is there a motion to approve the recommendations of the Nominating Committee? Is there a second to the motion? Is there any discussion? All in favor of the motion to approve the recommendations of the Nominating Committee say “Aye,” all opposed same sign. Motion passed. That concludes our formal business for this morning. It’s now my pleasure to introduce our K-State President. Welcome Kirk!
Presenter
Presentation Notes
CURT FRASIER Thank you, Kirk, for sharing your vision with us today! Many of you had the opportunity to meet and hear from the Foundation’s new President & CEO at the first-ever spring meeting in April. Please help me welcome Greg Willems back to the stage, where he and his executive leadership will present us with the Foundation’s state of the organization. Welcome Greg!
FY15 highlights
Greg WillemsPresident/CEO
Highlights seven months in
• Organizational retreat
• Organizational structure changes in August
• Elevated engagement and partnership with deans
• Increased emphasis on communication and foundation brand
• Campaign launch and building completion
Presenter
Presentation Notes
Organizational retreat (4 enduring objectives & culture of excellence philosophy born) Organizational structure changes August Staff additions and promotions Ambitious unit & individual goal setting Elevated engagement & partnership with Deans Partnership impact reports / monthly meetings Increased emphasis on communication & KSUF Brand Internal with staff External with campus, trustees and donors Campaign launch & building completion
Enduring strategic objectives• Maximize relationships, partnerships and outcomes with our
constituencies• Maintain and proliferate a brand identity that is clear, inspiring
and reinforces trust and affinity• Secure and deploy KSUF operating resources through
progressive best practices to achieve the highest return to KSU• Inspire an organization of engaged and dedicated staff
operating within a culture of excellence
Presenter
Presentation Notes
Donors, Volunteers, Alumni Assoc., Athletics, Academy, KSUF Staff and broader community
Cash made available to K-State
Presenter
Presentation Notes
Kirk indicate our continued fundraising success having completed
How are we rising to the challenge?
Communication/BrandingVolunteer Engagement
New Building and Real Estate
Investing in multiplier effect
Presenter
Presentation Notes
INVESTING IN MULTIPLIER EFFECT COMMUNICATION & BRANDING VOLUNTEER ENGAGEMENT KSUF BUILDING & REAL ESTATE
Communication and branding
• KSU Foundation website
• Professional videographer
• Social media
• Media pitches
• Campaign communications
Presenter
Presentation Notes
Hired Mary Bourne and invested in technology and a studio to produce ultra high quality videos. KSU Foundation website: unique views up 98% in Q1 for FY16 compared to same period for FY15. Professional Videographer: (27 videos in 12 months garnering 90,000+ views) K-State Marching Band support video viewed 20K + in less than 72 hours on Facebook. Social media: New posting strategy including activities of KSUF CEO has pushed us over 1,600 followers on Twitter. Media pitches: Three front-page stories (K-State Office Park and Phase IV Engineering building). Phase IV pitch also resulted in coverage from two television stations. Campaign communications: Expect a huge uptick in connecting with K-State alumni
• Jennifer Fabrizius exclusively supporting the KSU Foundation Board of Trustees and Board of Directors
• Creating an elevated experience and engagement for your time and talent as ambassadors, advocates and investors
• Proactively engaging you in opportunities to serve K-State– Coordinated efforts between the foundation and colleges/ major units to maximize trustee
involvement
– Co-host campaign launch events in your area
– Help identify future prospective trustees and donors
Volunteer engagement
Presenter
Presentation Notes
Attended AGB national roundtable Help identify future prospective trustees and donors - Individual trustee business cards - KSU Foundation fact cards
Real Estate and new KSUF building
• Future source of significant revenue benefitting K-State
• Attracts partnership for K-State to increase its research and contributes to our land grant mission objective (deploying discovery, creating businesses and jobs)
• Strengthen our organizational culture and the environment for our staff’s success
• Physical space to celebrate philanthropy and engage donors
Presenter
Presentation Notes
KSUF REAL ESTATE PROVIDES Future additional source of significant revenue benefitting K-State Valuable enabler to get projects completed (lower cost, timely delivery) Attracts partnership for K-State to increase its research Contributes to K-States land grant mission objective (deploying discovery, creating businesses & jobs) BUILDING PROVIDES Strengthen our organizational culture and the environment for our staff’s success Use space & technology to improve our ability to serve Physical representation of the value of philanthropy and memorializes its importance in the advancement of K-state Allows us to host and engage prospective donors in our facility
Real Estate & Finance
Greg LohrentzSenior Vice President for
Operations and Finance COO/CFO
Presenter
Presentation Notes
A major organizational initiative that the foundation has embarked on is to become a collaborative partner with the university as it seeks to develop the north campus corridor. In June, the Board of Directors voted unanimously to begin Phase I of development of a 14-acre master plan for the corner of Denison and Kimball Avenues. Here to tell you more about that is Rand Berney, vice chairman of the Board of Directors, and chairman of the Finance and Audit Committee.
On-Campus Partners Ecosystem
On-Campus Partners By Discipline
Computer Engineering
Construction Science
Global Food Systems
Animal Health
One Lab
Future Phase
K-SiteOnline.com
KSUF assets
Securing donor information• Improved Network Security System
Sound financial management• Clean Annual Audit
Growing the endowment• 8% annualized return over the last 20 years
Investment management
Lois CoxVice President of Investments /
Chief Investment Officer
Endowment pool market value
$0
$100,000,000
$200,000,000
$300,000,000
$400,000,000
$500,000,000
$600,000,000
Presenter
Presentation Notes
ADD 20 YR RETURN? - From GSW June 2015 AA Orientation PPT Ranks us in the upper quartile nationally
• Diversified strategies focused on long-term growth to earn the distribution rate, plus inflation, over various market cycles
•• Asset allocation study conducted in
late 2014 by external consultant affirmed the current strategic asset allocation
Endowment pool asset allocationUS Equities
$54,379,560 11%
Intl Equities$55,259,831 11%
Emg Mkts Equities$72,605,881 15%
Private Capital$79,136,239 16%
Distressed Debt$6,491,337 1%
Long-Short Hedge Funds $37,076,101
8%
Inflation Sensitive$60,854,406 13%
Diversifiers$41,099,471 8%
Overlay $47,453,748 10%
Deflation Hedge$34,522,028 7%
June 30, 2015 - Actual Allocation
Endowment Pool Performance
Rolling 5-year Sharpe ratio of 1.26, indicating strong risk-adjusted performance
(0.88)
9.84 9.22
6.32
(1.69)
9.19 9.30
6.998.41
(4.00)
(2.00)
0.00
2.00
4.00
6.00
8.00
10.00
12.00
1-Year 3-Year 5-Year 10-Year
Endowment Pool Macro Custom Benchmark Absolute Objective
Headlines• Will the Fed raise rates in 2015?• China’s slowing economy• Energy markets down >50% since June 2014
Finding opportunities• Frontier equity• Distressed energy
Policy response
• Maintain long term investor mindset• Establish distribution rate which allows the endowment pool
to be sustainable• Maintain strategic asset allocation designed to meet
objectives with acceptable volatility thru disciplined rebalancing
• Maintain disciplined approach to manager diligence
Campaign update
Greg WillemsPresident/CEO
Presenter
Presentation Notes
Advances university Provides focus Creates urgency Builds enthusiasm Enhances understanding Strengthens capacity The Innovation and Inspiration Campaign is: The most ambitious campaign in K-State’s history. Aligned to support the seven themes of K-State 2025. Inclusive of the entire K-State family. The objectives of the Innovation and Inspiration Campaign are to: Promote the excellence and achievements of Kansas State University Encourage philanthropic resources in support of the priorities of K-State 2025 Raise the bar for philanthropic giving to advance Kansas State University
As of September 29, 2015
Campaign progress: 77% of goal66% of days into campaign
Campaign progress highlights• 96,227 donors have made gifts in the campaign
• 327,123 individual gifts made during the campaign
• 137 gifts of $1M or more
• 2 transformational gifts – $70M Dolese and $60M Vanier
• $206M+ for modernization and new facilities
Impact of trustees in campaign
• 30% of the campaign gifts to date are from Trustees• 78 trustees are serving on the campaign steering committee or a
college committee• 107 trustees are serving on college/department/major unit advisory
councils• 45% of trustees have made planned/estate gifts for K-State
Campaign PhasesFlooring phase: July 1, 2010 – Kickoff
• Today – Campaign Kick-off: October 9, 2015
Public phase: Kickoff – June 30, 2018• Regional events• Campaign Conclusion Celebration: Fall 2018
Presenter
Presentation Notes
Celebrate the greatness of K-State and what we aspire to be Recognize the leadership of campaign volunteers Thank those who have invested and inspire further participation Illustrate the impact of philanthropy across the academy Extend the impact and reach of the launch events’ message and excitement
Mark your calendars!
Spring Trustees MeetingApril 15-16, 2016
Presenter
Presentation Notes
Curt Frasier As you will recall, the recommendation was to add a second opportunity for a trustee gathering. As such, our second spring meeting of the Board of Trustees will be held in conjunction with the annual Celebration of Giving event and K-State’s Open House on April 15 and 16 next year. Mark your calendars now!
Presenter
Presentation Notes
CURT FRASIER It’s now time for a short break as we reset the stage for the panel session with our University leadership. As you have seen, there is not much room to move around due to extensive renovation here at the K-State Student Union. So grab a quick beverage and join us back here in 15 minutes. Please note restrooms available within the Forum Hall lobby.
