What a difference a year makes.
In early 2003, the effects of the bear market on endowment earnings and on college and university operating budgets dominated the discussion of endowment management issues.
This January, at NACUBO"s 2004 Endowment Management Forum, held in New York City, experts elaborated for the convened higher education investment, financial, and administrative officers on the generally improved endowment investment performances from 2003.
They discussed endowment spending rates, alternative investments, risk control, and governance, plus offered predictions for the road ahead. The forum is held, by design, shortly after the annual NACUBO Endowment Study (NES) is completed. This year"s report recorded more favorable results for the fiscal year ending June 30, 2003, when compared to the previous two years. Even though the 2003 NES showed that, on average, equity investment performance improved and institutions were able to make spending adjustments, the forum speakers speculated that a fundamental change in the economy would nevertheless result in needed changes in the operations and investment decisions in educational institutions. Investment strategies that worked previously may not perform now, especially in this volatile environment.
