February 9, 2008
Contributed by Thomas Yoshida
Fiscal year 2007 was the second full year of Kamehameha Schools' Education Strategic Plan, which marked a refined focus on education within its broader 15-year Strategic Plan through three major strategic priorities. In addition to meeting its second-year objectives of the plan, Kamehameha Schools invested more than $17.6 million in memorandum of agreements with more than 60 community organizations statewide, providing services and program funding in predominantly Hawaiian communities to expand quality educational opportunities
"Last fiscal year was an incredible year, where everyone at Kamehameha Schools found ways to reach out to Hawaiian communities," said Dee Jay Mailer, chief executive officer of Kamehameha Schools. "From our students and families, to our staff and alumni, all minds were seeking ways to extend Pauahi's legacy – it was amazing.
"This fiscal year, the seeds of that work are sprouting as we work alongside of incredibly dedicated people in their communities to change the quality of education. While so much more is to be done, we can't help but feel rewarded by the accomplishments of our people every day. Maika'i loa!"
Kamehameha Schools spent over $250 million in fiscal year 2007, an increase of nearly $30 million of fiscal year 2006. The funding includes campus-based and community outreach programs as well as financing on capital projects and repairs. Kamehameha Schools' spending policy sets a target of four percent of the five-year average market value of its endowment to be spent annually on its educational mission.
Enrollments in Kamehameha's preschool and K-12 classes in 2007 were 1,467 and 5,354 students respectively. Other progress towards achieving Kamehameha's educational strategic priorities included:
The second priority of the Education Strategic Plan calls for supporting children in grades four through post high school, sustaining the momentum created by Kamehameha's focus on early childhood education.
Summarized Financial Results for FY ending June 30, 2007:
Kamehameha enjoyed significant progress during the year in managing its assets as real estate, stocks and other equity investments boosted the fair value of the institution's Endowment by $1.39 billion to nearly $9.06 billion, a one-year total return of 22.3 percent.
This is the third consecutive year that Kamehameha Schools has realized a strong investment performance. In 2005, a 12.9 percent return brought a jump of $600 million to an Endowment fair value of $6.8 billion, while 2006 saw a 17 percent return, adding $897 million to a fair value of $7.66 billion.
"Endowment's overall success is a result of prudent investment and land management and a talented and dedicated management and support team," said Kirk Belsby, Kamehameha's vice president of Endowment.
Kamehameha Schools evaluates its investment performance using multiple benchmarks for various purposes. Kamehameha's FY 2007 endowment performance exceeded its internal (Endowment Fund Composite) benchmark by 6.8 percent and its peer group (Cambridge Associates Large Endowment Fund Median) benchmark by 2.1 percent. It also significantly exceeded Kamehameha Schools' longer term benchmark of CPI + 5 percent by 14.6 percent.
Investment return highlights for fiscal year 2007 included:
Emerging Markets 49.4% Hawaii Real Estate 31.7 Non-US Equity 26.5 US Equity 20.9 Venture/private equity 18.7 US mainland real estate 20.3
Overall the Endowment fund's inception-to-date returns are calculated from July 1, 1999. Kamehameha Schools' Endowment Fund total return was 11.3 percent for this period. This performance exceeded our Composite Benchmark by 3.6 percent and Cambridge Associates Large Endowment Fund benchmark by 0.9 percent. It also significantly exceeded the CPI + 5 benchmark by 6.5 percent.
A full copy of Kamehameha Schools' audited Consolidated Financial Statements and Supplemental Schedules for the fiscal year ending June 30, 2007, will be available at www.ksbe.edu on February 11, 2008.
Kamehameha Schools is a private, educational, charitable trust founded and endowed by the legacy of Princess Bernice Pauahi Bishop. Kamehameha Schools operates a statewide educational system enrolling more than 6,700 students of Hawaiian ancestry at K-12 campuses on O'ahu, Maui and Hawai'i and at 31 preschool sites statewide. Thousands of additional Hawaiian learners are also being served through a range of other Kamehameha Schools outreach programs, community collaborations and financial aid opportunities in Hawai'i and across the continental United States.
Kamehameha Schools’ policy is to give preference to applicants of Hawaiian ancestry to the extent permitted by law.
