Wednesday, October 19, 2016

The Ivy Leagues’ Humbling: Richest Endowments in Decline - JIM SCHAFFER, Bloomberg

Endowment investing drives major universities. Endowment income accounts for more than 30 percent of total operations at some institutions, supporting everything from financial aid to research. Management teams and boards establish governance and management structures to strive for positive returns. No investment approach constitutes an industry best practice. A clean audit opinion does not say anything about an institution’s success at risk mitigation. Positive performance calls for complex diversification strategies. When it works, students enjoy new amenities and alumni and other donors are proud. When it doesn’t work, misery abounds.

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