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Should Your Endowment Invest in Alternatives?

Title: Should Your Endowment Invest in Alternatives?
Language: English
Authors: Yoder, Jay A.; Association of Governing Boards of Universities and Colleges, Washington, DC.
Source: Trusteeship. Jul-Aug 2005 13(4):1-4.
Availability: Association of Governing Boards of Universities and Colleges. 1133 20th Street NW Suite 300, Washington, DC 20036. Tel: 800-356-6317; Tel: 202-296-8400; Fax: 202-223-7053; Web site: http://www.agb.org
Peer Reviewed: N
Page Count: 4
Publication Date: 2005
Intended Audience: Administrators
Document Type: Guides - Non-Classroom; Journal Articles
Education Level: Higher Education
Descriptors: Investment; Endowment Funds; College Administration; Educational Finance
ISSN: 1068-1027
Abstract: Alternative investments (those that exhibit risk and return properties not easily attainable from traditional asset classes) constitute an investment option that no modern college or university investment strategist can ignore. Colleges and universities with larger allocations to alternatives outperformed institutions with smaller allocations in both the bull market of the late 1990s and in the bear market of the early 2000s. Given this widespread acceptance and generally successful performance of nontraditional investments, should all colleges and universities invest in alternatives? The author answers this question by reviewing the advantages and disadvantages of alternative investments, and concludes that, despite their successful record, they are not the right fit for every institution. Only colleges and universities willing to make substantial, diversified, policy-driven commitments implemented by experienced, full-time professionals are advised to consider alternative investments in their plans. (Contains 1 table.)
Abstractor: ERIC
Entry Date: 2007
Access URL: http://www.agb.org/wmspage.cfm?parm1=1088
Accession Number: ED496453
Database: ERIC