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ERIC Number: ED112746
Record Type: Non-Journal
Publication Date: 1972-Mar
Current Trends in College and University Investment Policies and Practices.
Adams, Rodney H.
Studies in Management, v1 n3 Mar 1972
Investment trends and the total return concept discussed at the NACUBO Regional Investment Workshop are described. A survey was made by the NACUBO Committee on Investment of 1,059 institutions, 189 of which responded. The most important finding was that 26 institutions reported the adoption of total return investing. Other findings were that about 50 percent of the respondents classify and distinguish between endowment and quasi-endowment funds; over half operate an investment pool on a market value basis; all of those respondents have adopted the unit market value method for fund share accounting; and most institutions employ a single external advisor, with a small number having multiple advisors. The total return concept consists of two elements, yield and appreciation, and has a dual basis, one beging an investment performance objective and the second a systematic withdrawal or portfolio assets to augment investment yield. Investment objectives for colleges and universities are described and related to this concept. Attention is also directed toward the Uniform Management of Institutional Funds Act, which is being drafted to be applicable to all endowment funds. Recent tax legislation, especially the Tax Reform Act of 1969, is also reviewed. (LBH)
Descriptors: Accounting, Bookkeeping, Educational Finance, Financial Policy, Financial Services, Higher Education, Investment, Money Management, Philanthropic Foundations, Resource Allocation, School Surveys, Trusts (Financial)
National Association of College and University Business Officers, One Dupont Circle, Washington, D.C. 20036
Publication Type: Journal Articles
Education Level: N/A
Authoring Institution: National Association of College and University Business Officers, Washington, DC.