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Annual Report 2015

Financial performance 2013/14

Generous alumni support, together with ongoing income diversification and careful cost control, contributed a very positive financial performance for the College in 2013/14. Income from all activities was £12.62m, including £2.3m in new capital donations to be transferred to the endowment. Expenditure, at £10.30m, reflected our typical composition of costs, with increased expenditure for the kitchen renovations and other investment in infrastructure.

The figures in the charts below are extracted from the College’s statutory audited financial statements for the year 2013/14, which were approved by Governing Body on 8 December 2014 and may be seen in full here. They show that the ongoing generous support of Balliol’s donors is crucial, if the College is to continue to build its endowment whilst also achieving many of its academic and operational objectives now and in the future.



Financial performance pie charts

Capital expenditure

Over the last decade leading up to the College’s 750th anniversary year, Balliol has spent more than £10m on infrastructure projects, including a major overhaul of the kitchen and also a new home for our archives at the Historic Collections Centre at St Cross Church, which was funded entirely through donations from Old Members and Friends.

A major survey of the College’s estate was undertaken in late 2014. Following the recommendations from this exercise, we plan to invest a further £10m over the next decade improving the College’s accommodation and facilities on the main site and elsewhere. This will include essential work on the external masonry on our main site, preserving our historic buildings for future generations of students and Fellows, and significant projects on the Libraries, Chapel and the Hall.

Capital expenditure pie charts

 

Endowment update 2013/14

The value of the College’s endowment funds stood at £82.1m as at 31 July 2014, up £5.4m from one year ago on a like-for-like basis. Over the 12 months to 31 July 2014 the investments performed in line with market conditions, with a total return after expenses of 6%. For the five year period to 31 July 2014, endowment returns were 7.9% per annum, excluding the value in our private equity portfolio which we have built over recent years. These holdings are beginning to mature and we anticipate a positive return in the coming years.

The College’s endowment portfolio is overseen by a revised Investment Committee comprising the Master, the Finance Bursar and several Fellows, along with several external finance professionals, the majority of whom are Old Members. The committee’s investment objectives are to achieve maximum total returns in the long term, while reducing market risks where possible, while generating sufficient assets to meet the College’s annual spending needs. As noted in the 2012/13 Annual Report, the College has now reduced its spending rule, based on a four-year rolling average of endowment value, to a drawdown of 3.75%. Our aim is to promote sustainability and intergenerational equity for future students and Fellows.

 

 Endowment pie chart