University Endowments

I am thrilled to share with you here on the Capital Allocators blog interesting articles and publications on University endowments.

To begin, I want to quote what Charles D. Ellis says about endowments in his foreword to David Swensen’s book Pioneering Portfolio Management:

“Most of the Western world’s great educational and cultural institutions – universities, colleges, libraries, museums, and foundations – depend, to varying degrees, on their endowments and the spendable funds they produce. Usually the difference between ‘mediocre’ and ‘excellent’ is that margin of assured fiscal strength that only an endowment can produce. In this way, our society depends on endowments for that vital margin of fiscal strength that facilitates institutional excellence.”

The endowment supports the educational mission of a school. It provides for classrooms, libraries, and scholarships for today’s students. Investing that endowment appropriately and intelligently will ensure that funds are also available for future generations.

Yale campus

Post by Marcelino Pantoja