Transition to Endowment
Our ultimate aim is to establish a needs-blind admission policy, which would enable a third of our pupils to access means-tested bursary support, as in the days of the Direct Grant Scheme. To achieve this, we would require a total endowment fund of over £100m.
The MGS Trust has now set up a dedicated Bursary Endowment Fund, with £5m of the existing assets (£24m) transferred and ring-fenced. The Endowment Fund will be invested into a balanced portfolio consisting of equities, bonds, alternative asset classes and cash, with the aim of generating a distributable income of 3% per annum to support bursaries, whilst protecting the underlying capital against inflation (measured by CPI) over the long-term. The income from the endowment fund will combine with the income from the existing high draw bursary fund to make up the annual bursary grant to the School each year. Our aim is to prudently increase the proportion of endowed funds to high draw funds over a period of time. We believe that an Endowment Fund of £50m would generate sufficient income in perpetuity to maintain the number of means-tested bursaries at its current level of one in six pupils.
The journey towards full endowment is likely to take decades, but it is a challenge to which we are wholeheartedly committed. It is the vision of Old Mancunians and the School alike that we should have a needs-blind admissions policy once more. Thanks to the continued support and generosity of our supporters, we shall establish a true Bursary Endowment and remain true to our Founder's ethos.
To view a copy of our annual report, please click here.