Still, the immediate challenge of inflation may put pressure on the endowments support for the budget, given the unpredictable nature of the economy. U.S. colleges and universities maintain some of the largest endowments in the world, and make up the strong majority of educational institutions with endowments greater than $1billion. Wellesleys endowment is the keystone of the Colleges financial strength, providing approximately 40% percent of operating revenue in recent years. Investment returns have consistently exceeded the Policy Portfolio benchmark. By 2015, the table totaled $394.96 billion, an increase of 80%, and in 2018, the total further increased to $479.23 billion. The portfolio has sufficient exposure to liquid investments to maintain the endowments financial support of the Colleges operations and to provide for the liquidity needs of the portfolio. Here you'll find a collaborative, collegial team environment designed to include and motivate every individual. [9][10] Critics note that the tax could threaten financial aid for low-income students, stifle social mobility, and obstruct life-saving research. With an $887.4 million endowment last year, 186-year-old Oberlin is wealthier than most small private institutions, but far behind its wealthier peers -- colleges like Amherst, Swarthmore and Wellesley all reported endowments at or near $2 billion. The SIR evaluates these requests and may decide to recommend action to the Investment Committee. The other 80% is derived from last years amount of spending, adjusted for inflation. Watts said the college grew its endowment by about $45 million in the 2013 budget year and is working to cut spending. No affiliation or endorsement, express or implied, is provided by their use. Despite this increase, exposure as a percent of the portfolio fell as managers holding of public equity declined and other parts of the portfolio outperformed energy. [7][8], The endowment tax provision of the Tax Cuts and Jobs Act has been criticized as funding tax breaks for corporations and the wealthy at the expense of education. Wellesley College's endowment return fell by roughly $291 million in the 2022 fiscal year, the first year of negative return since 2017. It. In executing the investment strategy, the Investment Office team aims to add value within asset classes through long-term partnerships with strong performing, highly ethical investment managers. We will be in touch soon. Wellesley Racial/Ethnic Breakdown of Undergraduates We use a blend of 65 percent stocks (as measured by the MSCI ACWI) and 35 percent bonds (as measured by the Citigroup World Govt Bond Index). At Wellesley, the creamy treats are distributed through Hershey's Colleges and Universities ice cream program. Spokeswoman Casey Bayer confirmed Friday that all reported returns were net of fees. Wellesley College strives to be a responsible investor. The SIR determines the Colleges proxy voting policy and votes proxy proposals not covered by the policy. Debby Kuenstner 80 is Wellesley's chief investment officer. ", "Why the Endowment Tax Is Unconstitutional", "H.R.5220 - Don't Tax Higher Education Act", "H.R.4438 - Don't Tax Higher Education Act", "U.S. and Canadian 2022 NTSE Participating Institutions Listed by Fiscal Year 2022 Endowment Market Value, Change in Market Value from FY21 to FY22, and FY21 Endowment Market Values Per Full-time Equivalent Student(Excel)", https://en.wikipedia.org/w/index.php?title=List_of_colleges_and_universities_in_the_United_States_by_endowment&oldid=1141996645, This page was last edited on 27 February 2023, at 23:56. When Volent took on her position in the summer of 2000, Bowdoin's endowment stood at just over $465 million; in the year ended June 30, 2020, the endowment had gained 5.9 percent, growing to $1.8 billion, providing nearly $72 million to the annual operations of the College last year, including $33 million for need-based financial aid. An endowment is the total value of a school's investments, donations, and assets. As of June 30, 2022, the endowment's market value was $2.7 billion. Strong returns in fiscal year 2020-21 led the largest university endowments to soar. This growth added $958 million to the endowment, bringing its value to $3.22 billion as of June 2021. According to Chief Investment Officer, Debby Kuenstner, the losses were driven primarily by the poor performance of financial markets, which include public equities, hedge funds, fixed income, and private investments, which yielded negative returns. The Policy Portfolio benchmark is a measure of how the Colleges target asset allocation would perform if returns in every asset class matched the market. Debby Kuenstner joined Wellesley College as Chief Investment Officer in February 2009. We encourage you to reach out for a one-on-one discussion about endowed giving opportunities by emailing giving@wellesley.edu. Deborah F. KuenstnerChief Investment Officer, Investment OfficeNehoiden HouseWellesley College91 Dover RoadWellesley, MA 02482, Debby Kuenstner, Chief Investment Officer, Copyright Trustees of Wellesley College | Wellesley College 106 Central Street Wellesley, MA 02481 (781) 283-1000. The bill specifies that the tax will be imposed on colleges and universities whose "aggregate fair market value of the assets of which at the end of the preceding taxable year . Brick building in the campus of Wellesley College. The SIR also may make recommendations directly to the Investment Committee on issues that are raised by Subcommittee members. Across the portfolio, our managers must have an uncompromising focus on integrity, which not only ensures alignment with the Colleges values, but protects long-term returns as these managers put client interests first. Request Profile Update Download Data $2,991,368,000 Assets 10 Contacts Home Profiles Endowment North America Dartmouth College with its $6 billion endowment estimates it will pay $4.5 million in new taxes. Investment OfficeNehoiden HouseWellesley College91 Dover RoadWellesley, MA 02482, Debby Kuenstner, Chief Investment Officer, Copyright Trustees of Wellesley College | Wellesley College 106 Central Street Wellesley, MA 02481 (781) 283-1000. The Investment Office and the Investment Committee remain focused on long-term growth to ensure that the endowment continues to support the Colleges mission. For the five, 10 and 15 years ended June 30, the $3.2 billion endowment returned 16.5%, 11.7% and 9.8%, respectively, vs. their respective benchmarks of 14%, 9.9% and 8.4%. On June 30, 2021, the portfolios exposure to fossil fuels was 2.9%, down from 3.7% a year earlier. Copyright Trustees of Wellesley College | Wellesley College 106 Central Street Wellesley, MA 02481 (781) 283-1000, We encourage you to reach out for a one-on-one discussion about endowed giving opportunities by emailing, For more details about the College's endowment, including annual investment performance and endowment contributions to Wellesleys annual budget, see the. Returns by asset class and long-term . Investment OfficeNehoiden HouseWellesley College91 Dover RoadWellesley, MA 02482, Debby Kuenstner, Chief Investment Officer, Copyright Trustees of Wellesley College | Wellesley College 106 Central Street Wellesley, MA 02481 (781) 283-1000. The amount of income available to be spent in the fiscal year is determined by taking the number of shares the fund owns and multiplying by the distribution rate per share determined by the College. Established in 1919, its central focus is on entrepreneurship education . [1][2] In 2005, the endowment table totaled $219.37billion. The Wellesley College Board of Trustees is responsible for the investment of the College's Endowment. Wellesley College posted an 8.8% return for its endowment for the fiscal year ended June 30, according to the Massachusetts-based college's annual report. For public universities, the larger endowments are often associated with flagship state universities, especially those associated with a medical school. SWFI facilitates sovereign fund, pension, endowment, superannuation fund and central bank events around the world. More Emmett Jennett '15 Investment Associate Emmett Jennett joined Wellesley College as an Investment Analyst in July 2015. Your email address will not be published. So our belief was that the fiscal and monetary policy during that period had pulled returns forward and that there would be some correction.. In all cases, the groups responsible for appointing representatives are asked to make two-year appointments, on a staggered basis where the group is responsible for appointing multiple representatives, to maintain continuity in Subcommittee discussions. Wellesley College 1875 The endowment is invested across diverse asset classes, strategies, geographies, and managers with the objective of providing strong operating support while preserving purchasing power. Grinnell College has three primary sources of revenue: 1) the annual endowment spending distribution, 2) revenue from students, and 3) philanthropic support, plus other auxiliary operations (e.g. SWFI is a minority-owned organization. These institutions are exclusively private. The stewardship of these resources includes the investment of the endowment and other financial assets of the College as well as oversight of the investment of planned giving assets. Wellesley student orgs lead collection drive and fundraiser for relief, BSA hosts International Mother Language Coffeehouse, Renowned photographer gives energetic artist talk, The Starling Girl Brings Agency to the Forefront. Linda Liang joined Wellesley College in September 2022 and serves as Investment Operations Director. By asset class, long-term alternatives returned 77.6% for the fiscal year ended June 30, followed by equities, at 39.8%; semimarketable investments, which include absolute return, 22.8%; cash and equivalents, -0.1%; and fixed income, -10%. The 9.6% endowment decline, which brought the endowments total value to $2.94 billion, came in sharp contrast to the record-breaking 46.5% returns the College enjoyed last fiscal year. The National Association of College and University Business Officers (NACUBO) maintains information on college endowments. Babson College is a world-class business school, empowering entrepreneurial leaders to create great economic and social value - everywhere. Mailing address:Wellesley CollegeController's Office106 Central St., GRH139Wellesley, MA 02481-8203, Higher Education Emergency Relief Fund (HEERF). Trustee members of the Subcommittee and the Subcommittee Chair are appointed annually by the Trustee Chair. Smith's endowment, now valued at more than $2 billion, funds more than one-third of the college's operating budget and enables the college to invest in such key areas as student financial aid, faculty recruitment and retention, and strong academic programming. View the 'FIN Gift Spendable Balance' for the gift. 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