IDAHO ENDOWMENT TRUSTMISSION STATEMENT
Provide a perpetual stream of income to the beneficiaries by: maximizing long-term financial return at a prudent level of risk; protecting future generations’ purchasing power; and providing a
relatively stable and predictable payout.
Idaho Land Grant EndowmentsA Report to the Citizens – 2014
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Endowment assets of the State of Idaho consist of both land and funds. At statehood, 3.6 million acres of land were granted to the state by the federal government and 2.4 million acres remain. Certain proceeds from the sale of land and reinvested income have been accumulated in the endowment funds, which totaled $1.7 billion as of June, 2014.
The Idaho Board of Land Commissioners oversees the state’s endowment assets. Under the direction of the Land Board, endowment lands are managed by the Idaho Department of Lands and the funds are managed by the Endowment Fund Investment Board.
Overview of Trust Assets
Find more information online at www.efib.idaho.gov and www.idl.idaho.gov
ENDOWMENT GOVERNANCE: IDAHO LAND BOARD
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INSIDE THIS REPORTOverview ofTrust Assests
The Beneficiaries, Endowment Fund
Revenues & Expenses
Returns & Highlights, Income History
01
02
03
04
Federal Land
State Endowment Land
Tribal Land
Private & Other
LAND OWNERSHIP & MANAGEMENT
N
0 25 50 100Miles
Projection: Idaho Transverse Mercator NAD 83Author: Ed DeYoung, IDL Technical Services BureauDate: May 2014
2.4 million acresof endowment land
LewistonLewiston
MoscowMoscow
Coeur d’AleneCoeur d’Alene
SandpointSandpoint
BoiseBoise
Mountain HomeMountain Home
Twin FallsTwin Falls
PocatelloPocatello
Idaho FallsIdaho Falls
TheBeneficiaries
Endowment Fund
Endowment assets are assigned by law to specific beneficiaries and income from those assets can only be spent for the support of those beneficiaries.
HISTORY OF ENDOWMENT DISTRIBUTIONS
ENDOWMENT FUND BALANCEENDOWMENT FUND
ASSET TARGET
Public SchoolHigher EducationOther
TOTAL
$337$103$58
$498
11 YEAR TOTAL (millions)
$60
$50
$40
$30
$20
$10
$0
$0
$500
$1,000
$1,500
$2,000
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
$ in millions
2005 2006 2007 2008 2009 2010 2011 2012 2013 201420042002 200320011999 200019981997199619951994June
02
30%
21%
49%
US Equity
Foreign Equity
Fixed Income
$ in millions
Other Endowments $22 Million One-Time Public SchoolPublic School Endowment
Revenues & Expenses (Land & Fund)
• Public School Fund - largest endowment beneficiary
• Agricultural College Fund - University of Idaho
• Charitable Institutions Fund - Idaho State University, State Juvenile Corrections, State Hospital North, Idaho Veterans Homes and the School for the Deaf & Blind
• Normal School Fund - Idaho State University Department of Education and Lewis-Clark State College
• Penitentiary Fund• School of Science Fund - University of Idaho
• State Hospital South Fund
• University of Idaho Fund• Capitol Permanent Fund – Capitol building (major
maintenance)
All nine endowment funds are pooled together for investment purposes.
Distributions can only be made from earnings and are determined annually by the Land Board based on permanent fund balances, amount in earnings reserves, and expected future income.
ENDOWMENT OWNERSHIP FY 2014BY ENDOWMENTPublic SchoolAgricultural CollegeCharitableNormal SchoolPenitentiarySchool of ScienceState Hospital SouthUniversity of IdahoCapitol Permanent
TOTALS
ACRES2,073,094
33,50377,25459,65528,90875,49031,42355,180
7,2832,441,790
PERMANENT FUND*$922
$23$95$81$35$96$55$64$28
$1,400
EARNING RESERVES*$164
$12$29$23$16$23$33$42
$2$344
FUND $ OWNERSHIP* $1,086
$35$124$104
$51$119$88
$106$30
$1,744
*$ in millions
03
5 YEAR HISTORY OF LAND REVENUE & INCOME FROM FUND INVESTMENTS
USES OF LAND REVENUEFY 2014
Permanent Fund
Earnings Reserves
Land Mgmt Expenses
70.9%
2.7%
26.4%
FACT: The construction of the Capitol in the 1920’s was funded by the sale of endowment land.
LAND INCOME BY ACTIVITYBY ACTIVITYRangelandForestAgricultureCommercialResidentialOther
TOTAL
ACRES1,411,452972,54616,89015,437
72624,738
2,441,789
2014 INCOME*$0.8
$53.5$0.4$3.8$4.2$3.2
$65.9
2013 INCOME*$0.7
$42.2$0.4$1.4$5.0$0.3
$50.0
2005-2009
2010-2014
$ in millions$0
$100$200$300$400$500$600$700$800
Land Revenue Income from Investments(includes market gains & losses)
*$ in millions
FY 2014 ENDOWMENT TRUST HIGHLIGHTS
300
250
200
150
100
50
$0
-50
-100
-150
-200
-250
04 How can we make this report better? Contact EFIB at www.efib.idaho.gov
• Annual income from endowment land reached a 14-year high of $66 million (on record revenues of $89 million)
• Record timber harvest of 347 million board feet, due in part to the response to limit losses from wildfire and insects
• Public School endowment fund received close to $1 million for lease of Snake River jump site
• Cottage sites worth $12 million were auctioned for private ownership
• Relative to peers, endowment fund returns were in the top 10% over the last two, five and ten year periods (due in part to a higher commitment to U.S. stocks than most other institutional investors)
• Land Board suspended plan to increase investment in Idaho commercial real estate and initiated a comprehensive strategy review due for completion in December, 2014
ANNUALIZED FUND RATE OF RETURN FOR YEARS ENDED JUNE 30, 2014
ENDOWMENT INCOME 2005-2014 LAND AND FUND (NET OF EXPENSES)
0% 5% 10% 15% 20%
18.8%
14.7%11.1%
8.5%
Total return, including market gains and losses. Before annual management fees and administrative expenses of about 0.4%
2005 2006 2007 2010 2011 2012 2013 20142008 2009
9.8% 10.9% 16.6% 15.8% 24.6% 1.0% 14.4% 18.8%-2.2% -18.0%FISCAL YEARS - Annual Fund Return (Before Fees)
Returns & Highlights
Income History
1 Year
3 Years
5 Years
10 Years
Land Earnings
Fund Earnings
Average Land
Average Fund
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