Camosun College and Royal Roads University are crediting conservative investment strategies for minimizing the financial fallout for students dependent on scholarships and bursaries paid by endowment funds.
The Camosun College Foundation will come through with payouts for all its nearly 1,100 students eligible for bursaries and scholarships, thanks to investment losses of less than three per cent in 2008.
"I think we're feeling rewarded that we took a cautious approach," said Susan Haddon, executive director of Camosun's foundation, noting that its $11-million principal has not been touched.
The Royal Roads University Foundation lost about nine per cent of its $5-million nest egg. No more than 15 students were expected to be affected by curtailed payouts on 10 to 20 per cent of the funds.
The "really critical" awards for people who need to pass means tests are all being funded, said Royal Roads foundation vice-president Dan Spiller, adding that bursaries are more important than ever in the current economic climate.
Camosun and Royal Roads stand in marked contrast to the University of Victoria Foundation. UVic's investment losses of more than 18 per cent prompted cancellation of payouts for 40 per cent of its 995 separate endowment funds worth $157 million.
Many endowments are worth less now than when they were set up, and hundreds of UVic students are thought to be affected.
Camosun heavily invested in dividend and interest income, with only 40 per cent in more volatile equities. That aversion to risk means gains aren't as large during market upswings but losses not as deep in downturns.
Seventy per cent of Royal Roads' funds are in bonds and only 30 per cent in equities, Spinner said, adding that the impact has also been tempered by using about $60,000 in unrestricted donor funds to top up critical bursaries.
UVic's foundation invested 65 per cent in equities and 35 per cent in bonds.
It has opted to curtail payments to protect what's left of the principal to support UVic students in perpetuity.
The university must now try to figure out ways to assist students in need.
Camosun payouts are expected to be down a bit across the board when decisions are made at a June 17 meeting.
About 15 per cent of students benefit from Camosun's annual bursary program and more than half apply for some kind of financial assistance. Last year, Camosun distributed about $450,000 in endowment funds.
Last year, the UVic foundation paid out $5.4 million; calculations for this year have not been completed.
