2018 Endowment and Debt Management Forum

Presenter(s):

Carl Vance, Lewis and Clark College

Tamara Larsen, Perella Weinberg Partners

Eileen DiBenedetto, Barnard College

Thomas Heck, Ball State University Foundation

More than ever, capital markets are powerfully shaped by shifting demographics, technological advancement, availability of natural resources, climate risk, and evolving social values, factors that are re‐drawing the investment landscape. The confluence of these trends, along with a growing body of research, is changing the way investors integrate sustainability research into traditional investment processes. Against this backdrop, institutional investors are seeking to align their portfolio with their mission, generating environmental and social impact without compromising financial return. This session will explore how endowments are approaching mission‐aligned investing; what works, what doesn’t, and the opportunities and challenges that exist.

Presenter(s):

Christopher Philips, Vanguard

William Abt, Carthage College

How should an investor allocate across active and passive investments? Without a structured process, it's an arbitrary decision based on implicit assumptions. To make clear the explicit attributes behind the decision, Vanguard has developed a quantitative framework for active-passive decision‐making. This discussion will center on the importance of the active‐passive decision and how the absence of a disciplined decision‐making process can lead to less‐than‐optimal outcomes and a lack of confidence in one’s choice. Presenters will provide a framework that allows investors to think more deliberately about their expectations and the risks they’re willing to take.

Presenter(s):

Craig Barker, University of Arizona Foundation

Nolan Bean, Fund Evaluation Group, LLC

Matt Finke, Fund Evaluation Group, LLC

Historically private equity has been one of the best performing asset classes. With expected returns lower for traditional stocks and bonds, should more endowments increase their allocation to private equity? Or, are the best returns for private equity behind us and an increase is too late to the party?
This presentation will provide background information and a road map for how to prudently build a private equity program.

Presenter(s):

Michael Hillman, Aptitude Investment Management

Lower endowment returns recently have provided cause for concern for many, particularly given increasing spending rates. Some investors have begun to question hedge funds given their high fees and recent mediocre returns. This presentation will explore the hedge fund market environment, why we believe they are still valuable, and how investors may establish greater manager alignment and better understand the fee model.

Presenter(s):

John Griswold, Commonfund

Ken Redd, NACUBO

Michelle Matis, Northern Arizona University Foundation

Thomas Heck, Ball State University Foundation

This annual panel will provide a brief overview of the NACUBO-Commonfund Study of Endowments. The panel will take a look at the challenges of the past year and identify challenges and opportunities going forward.

Presenter(s):

Lindsay Wayt, NACUBO

Bob Huth, Stetson University

Presenter(s):

Ken Redd, NACUBO

Mark Haas, Michigan State University

**This session is not open to members of the press and media.

Presenter(s):

Bob Huth, Stetson University

John Griffith, Hirtle, Callaghan & Co.

J. Michael Gower, Rutgers, The State University of New Jersey New Brunswick Campus

Susan Wallace, Saint Mary's College of California

Hear how three institutions each went about deciding how to manage their endowment in this rapidly changing environment. In the last year these three institutions reviewed their endowment management and came up with the solution that was right for them. Each chose a different solution - outsourcing, building an internal office and hiring a consultant to work with the board.

Presenter(s):

Jeremy Bass, PFM Group

Biagio Manieri, PFM Group

Michael Nicolescu, PFM Group

David Carson, Flagler College

The current environment calls for college and university professionals to expand how they evaluate a risk budget in the context of managing endowment portfolios. Enterprise risk encompasses consideration of the entire balance sheet when defining risk of an endowment portfolio. This presentation will offer an overview of the “endowment model” and demonstrate how debt, capital structure, and forecasting all interact within the risk management construct.

Presenter(s):

Beverly Daniel Tatum, Spelman College

The ABCs - affirming identity, building community, and cultivating leadership in a pluralistic context - are three critical components that every campus leader should understand in order to lead effectively in a diverse community.

Presenter(s):

Thomas Herbert, Miami University

Lindy Sherwood, TIAA Kaspick

Ann Kaplan, Council for Advancement and Support of Education

What role do charitable contributions play in growing the endowment? How do changing demographics and changing donor expectations and behavior impact giving? This session will explore these questions and strategies for addressing them as well as the essential teamwork of the CBO, CAO and COD in successful college and university fundraising.

Presenter(s):

Libby George, North Carolina State University

Mary Peloquin-Dodd, North Carolina State University

When NC State received a sizable endowment gift from a donor, with the provision that it employ SRI‐based principles in the endowment, the university needed to develop the necessary investment policies, establish the governance necessary for oversight, and create a pipeline of ESG‐driven investment managers. Learn how the University developed its initial approach to investing and the path it took to its current portfolio. Hear a discussion about how its approach to investments and managers evolved over a short period of time.

Presenter(s):

Cathleen Rittereiser, Commonfund

Nikki Kraus, Strategic Investment Group

Jeffrey Eisenbarth,

The task of a college or university investment committee member has never been more important. Many committees focus all of their time on the technical elements of managing endowments, yet good governance is essential to achieve that growth. The last decade has dealt out many important lessons for investors. Join a stimulating discussion of endowment management best practices.

Presenter(s):

Edward Jennings, University of Michigan

This presentation is designed to help college and university investment directors and managers better grasp the tax implications and consequences of investing in alternative investments. The discussion will include at‐risk tax topics as well as 'best practices' on how to manage them. The audience will leave with an understanding of these implications, including possible legislative tax reform proposals. Moreover, the participants will appreciate having college and university tax professionals develop relationships with external management firms, allowing them to manage these tax risks and liabilities, which will further bolster the relationship with their investment directors and managers.

Presenter(s):

Nancy Lazar, Cornerstone Management

From her viewpoint as leader of the economic research team at Cornerstone Macro, LLC, Ms. Lazar will discuss the emerging outlook for a healthier US and global economy.

Presenter(s):

Edie Behr, Moody's Investors Service

Linda Fan, The Yuba Group, LLC

Jon Moellenberg,

Jessica Matsumori, S&P Global

Craig Woody, University of Denver

Join a panel representing ratings agencies, underwriting and financial advising to examine issues related to issuance and management of debt. Topics will range from the impact of indebtedness on credit ratings, the pros and cons of negotiated vs competitive bond sales, to regulatory and reporting obligations at time of issue and continuing disclosure. Gain understanding of the underwriter's role and how to assess effectiveness, and explore the strategic considerations in deciding to issue taxable vs tax-exempt debt.