ERIC Number: ED051765
Record Type: Non-Journal
Publication Date: 1970-Feb
The Definition of Endowment Income.
Princeton Univ., NJ.
This booklet addresses itself to two basic questions: (1) what should be the University's objective in investing endowment funds? and (2) what part of the University's total return on endowment should be regarded as spendable income in any given year? After outlining the basic objective, which should be to obtain the highest possible total rate of return, the booklet defines spendable income and discusses the current financial rules of Princeton University, and the legal issues, the economic issues and questions of general policy involved. It then makes a proposal for a redefinition of endowment income and outlines and discusses in some detail the general features of a "Basic Plan." Included in the appendices are: (1) a glossary of terms; (2) historical data on the performance of the Princeton investment pool; (3) a review of plans at other institutions for the treatment of capital appreciation; and (4) notes to accompany illustrations of the proposed plan for a redefinition of endowment income. (AF)
Publication Type: N/A
Education Level: N/A
Authoring Institution: Princeton Univ., NJ.