Contact Information: Contact: Michael Peltz Executive Editor Institutional Investor mpeltz@institutionalinvestor.com 212-224-3152
Institutional Investor Report: A College Endowment Is a Terrible Thing to Waste
The November Issue of Institutional Investor Magazine Looks at How Hundreds of Colleges Failed the Test of Reading Financial Markets, Losing Billions in Endowment Dollars
| Source: Institutional Investor
NEW YORK, NY--(Marketwire - November 5, 2009) - Hundreds of American universities and
colleges, including all the Ivy League institutions, lost tens of billions
in endowment dollars this year, forcing them to make painful staff cuts,
kill programs and halt construction projects.
Read the full story at www.iimagazine.com
Harvard, the richest of the U.S. schools, lost $10 billion alone from its
once-$36 billion endowment fund. Stanford saw its coffers drop by $3.5
billion, while Princeton lost $3.7 billion. The endowment funds for these
schools are run by some of the smartest people in finance, yet they blindly
followed a seductive endowment model set up years ago in a very different
financial environment.
Institutional Investor magazine spent months analyzing how this meltdown
could happen -- visiting campuses, talking to elusive endowment chiefs and
sifting through piles of academic reports and failed endowment formulas.
The resulting 6,000-word November cover story not only explores how the
endowment model could go so wrong, but also details what schools are doing
to address the ongoing problem. In addition, the story includes in-depth
profiles of schools like the University of Pennsylvania, whose CIO Kristin
Gilbertson is featured on the cover of the November issue, that managed to
escape the worst of the carnage. A full investigative report, expanding on
our November story, appears on the story at the magazine web site:
www.iimagazine.com
The lessons learned by endowment chiefs, university presidents, trustees
and boards of regents are likely to have a lasting impact on the way that
U.S. educational institutions manage their finances: "Liquidity is
something we and others had not paid as close attention to as we should
have," admits Christopher Brown, CIO of Bucknell University, whose $443
million endowment lost 16.9 percent for the 12 months ended June 30, 2009.
"I don't think in our lifetime we will take liquidity for granted ever,
ever again," adds Sandy Urie, CEO and president of Cambridge Associates.
Don't miss this vital assignment. Read the full story now at
www.iimagazine.com.
About Institutional Investor
Now entering its fifth decade, Institutional Investor has consistently
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ground-breaking journalism and incisive writing that provides "must read"
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Institutional Investor offers a host of proprietary research and rankings
that serve as respected industry benchmarks, informing and influencing its
carefully targeted circulation base throughout the year. For more
information visit www.iimagazine.com.