Winter 2012 - Ensuring the Future of Dance - San Francisco Ballet

San Francisco Ballet in Tomasson’s Romeo & Juliet (© Erik Tomasson)
San Francisco Ballet Endowment Report
The San Francisco Ballet Endowment Foundation was
established in 1980 upon receipt of two gifts totaling just
under $30,000 and restricted for scholarships at the San
Francisco Ballet School. The Foundation received $1.2
million from an estate over the following two years and
in 1981 made its first distribution to the San Francisco
Ballet Association: $50,000, which represented almost
one percent of the Association’s operating budget of
$5.4 million. Since then, strong investment returns and
contributions, primarily from estates and from donors
to the Preserving a San Francisco Jewel Campaign and
Performing at the Pinnacle Campaign, have grown the
Foundation’s assets significantly and increased the
importance of the endowment to the Ballet’s revenue
stream.
The Foundation is incorporated as a separate nonprofit
public benefit corporation for the purpose of holding
and managing endowment funds for the benefit of the
San Francisco Ballet Association. It seeks to provide the
Ballet with a reliable source of support while protecting
its investments against inflation and wide swings in the
capital markets. A Board of Directors provides oversight
of the Foundation’s assets, which are managed by
professional managers or held in direct mutual funds.
The Directors are advised by Hall Capital Partners on the
Foundation’s investment strategies, manager selection,
and long-range planning.
Investment Performance
The Foundation relies on a total return strategy in which
investment returns are achieved through both capital
appreciation (realized and unrealized) and current
yield (interest and dividends). The Foundation targets
a diversified asset allocation that places emphasis on
investments in equities, fixed income, and alternative
investment strategies in a 40-20-40 percent ratio to
achieve its long-term rate-of-return objectives within
prudent risk constraints. The Foundation’s investments
continued to rebound with the market, increasing by 11
percent in FY2011. Below is a summary review of the
investment performance for FY11.
(in thousands)
Opening balance as of July 1, 2010 $77,933
Gifts and Pledge Payments to
Endowment Foundation in FY2011 1,731
Investment Returns/Reinvested Gains 12,255
Transfer to San Francisco Ballet Association (4,075)
Reclassification of Unrestricted Artist Reserve
Fund Assets to Association* (456)
Administrative Expenses, including Investment
Management Fees (495)
Closing balance as of June 30, 2011 $86,893
*The Artist Reserve Fund (ARF) provides grants to assist current and
former Company members with educational costs and thus helps ensure
a smooth transition from life as a professional dancer. Most assets in
the ARF have been contributed by SF Ballet and by donated services
by the Company and have, prior to FY2011, been invested alongside
assets designated to the endowment. The ARF’s assets, which are not
designated for the endowment, are now invested by the Association.
Donations to the endowment to support the ARF remain invested within
the Foundation and will continue to support dancers.