Putting the Institution Back into Institutional Investing

Higher education in the United States is facing financial challenges that, for many schools, carry not only budget-busting revenue declines but existential pressures. A combination of weakening demographics, a shifting perception of the value and role of a college education, and a technological transformation of education options is creating tremendous challenges for educational institutions.

To compensate for these challenges, financial pressures are manifested in a number of ways:

• Elevated annual draws and/or large one-time “special” draws
• Declining relative strength of the investment portfolio
• Sudden risk appetite to pursue returns

These types of demands are not ideal for typical endowment portfolios, which often feature both considerable market exposure and the associated volatility, as well as significant constraints.

In this Webinar On Demand watch a discussion on the fundamental need for committees to:

• Correct the disconnect between the financial condition of the endowment portfolio and the overall institution
• Improve transparency from the top down into the use and range of financial demands across the institution
• Increase the understanding of downside challenges and the management of those risks
• Learn what asset management can and cannot do for the institution