2023 Endowment Leadership Series

Schedule

Fundamentals of College and Nonprofit Endowments

February 9, 2023 • 2–3:15 pm ET • 1.5 CPE Credits

If endowments are not reserves or rainy-day funds, what are they? Experts will explain the legal and governing structure of endowment funds and cover how endowments are managed to provide colleges, universities, and other nonprofit organizations with a steady and reliable source of funding over the long term. This session explores the basic structure of endowments and covers how they are managed to support current operations without shortchanging the future.

Learning Objectives

• Describe the importance of endowment funds for scholarships and student aid, university research, public service, and campus infrastructure
• Recognize the long-term objectives of investment practices and policies
• Compare the differences between in-house versus outsourced investment management
• Explore current issues impacting endowments such as socially conscious investing

Speakers

• William Jarvis, managing director, philanthropic executive, Bank of America Private Bank
• Sue Menditto, senior director, accounting policy, NACUBO

Results from the 2022 NACUBO-TIAA Study of Endowments

February 23, 2023 • 2–3:15 pm ET • 1.5 CPE Credits

The 2022 NACUBO-TIAA Study of Endowments is expected to show that college and university endowments posted sharply lower returns in fiscal year 2022. These lower returns, and the prospect for tough market conditions in the future, bring even more pressure for universities to spend more endowment dollars to support students and faculty. The returns also come as campus leaders are facing rising inflation, lower enrollments, and increasing calls for adding new diversity, equity, and inclusion policies.

This session provides an overview of the results of the 2022 NACUBO-TIAA Study of Endowments, the most comprehensive analysis of endowment investment returns, asset allocations, and governance policies and practices at U.S. higher education institutions and affiliated foundations. College and university chief investment officers and other panelists will look back at the investment returns, asset allocations, and other factors that influenced performance in fiscal 2022. Panelists will also address the challenges of the financial market conditions they are facing in 2023 and beyond. We will also review the potential changes in spending strategies institutions used during the year.  

Learning Objectives

• Compare your institution’s FY22 investment results against national averages by endowment size and institution type
• Recognize differences in returns by endowment sizes and asset class
• Appraise the market challenges in fiscal 2023 and beyond
• Discover how institutions are integrating diversity, equity, and inclusion (DEI) policies into their endowment investing policies and practices

Speakers

• Renee Hanna, managing director of investments, Baylor University
• Robert Pompey, vice chancellor, business and finance, North Carolina A&T State University
• Ivy Flores, managing director, institutional advisory services, Nuveen, a TIAA Company
• Ken Redd, senior director, research and policy analysis, NACUBO (moderator)

Legislative and Regulatory Considerations for 2023

March 9, 2023 • 2–3:15 pm ET • 1.5 CPE Credits

In recent years, congress enacted a new net investment income tax on certain private college and university endowments, the Federal Trade Commission proposed changes to the Hart-Scott-Rodino Antitrust Improvement Act, and the Securities and Exchange Commission proposed new security-based swap reporting rules and new private investor disclosures. On Capitol Hill, several lawmakers introduced proposals for new endowment taxes and spending requirements. During this session, government affairs experts will explore what the new congress may seek to enact in the 118th congress and discuss the federal regulatory outlook for 2023.

Learning Objectives

• Understand the impact of the 2023 midterm election results and what it means for the federal legislative agenda
• Recognize the federal rulemaking processes that are underway and how they may impact college and university investment operations
• Develop strategies for working with advocates to monitor and respond to federal legislative and regulatory actions

Speakers

• C. Ndu Ozor, associate general counsel, University of Michigan
• Rick Grafmeyer, partner, Capitol Tax Partners
• Deborah S. Prutzman, chief executive officer, The Regulatory Fundamentals Group LLC
• Liz Clark, vice president, policy and research, NACUBO

RI, ESG, and Diversity: Defining Goals and Designing Strategies

March 23, 2023 • 2–3:15 pm ET • 1.5 CPE Credits

College and university investment offices have been responding to stakeholders’ social concerns for decades. Responsible investing (RI) involved responding to calls to divest from South Africa because of apartheid in the 1960s-1980s and now includes considering concerns about climate change and racial equity issues in terms of management and fund ownership. For example, data has shown that a lack of diversity in the asset management field, and a lack of diversity among college and university asset managers specifically, is an ongoing and persistent issue that some colleges and universities have begun to address. Others have made major new strategic investment decisions to stop investing in fossil fuels. Further, there is increasing interest from regulators and others to increase reporting on hard-to-define environmental, social, and governance (ESG) investing. During this session, explore strategies for investing with impact and with fiduciary duty.

Learning Objectives

• Learn how to define investing with impact
• Discover how colleges and universities are seeking high-impact solutions that deliver competitive returns and pursue ESG goals
• Understand diverse asset management myths and opportunities

Speakers

• Stacy Lewis Daher, associate vice president, finance and treasury, University of San Francisco
• Kelly Hagg, senior managing director, head of responsible investing strategy and solutions, Nuveen
• Drew Krepelka, managing director, senior investment strategist, TIAA
• Liz Clark, vice president, policy and research, NACUBO

Endowment Spending Considerations

April 6, 2023 • 2–3:15 pm ET • 1.5 CPE Credits

With record rates of return reported by all types of institutions in FY21 followed by significant market declines in FY22, colleges and universities continued an upward endowment spending trajectory. When do spending increases compromise intergenerational equity? How might institutions approach spending policies, target spending amounts, purpose spending in support of goals and objectives, and meeting changing student, academic, and campus needs? What are the best strategies to ensure stability with increased spending pressures? This session’s experts will address such questions, especially given large swings in returns over the past two years. The latest strategic investment practices that consider national and global economic policy decisions will also be discussed.

Learning Objectives

• Evaluate trends in spending rates and dollars by endowment size
• Assess spending practices that can meet institutional resource needs
• Explain the inputs and outputs of endowment spending decisions

Speakers

• Jim Bethea, chief investment officer, University of Iowa Center for Advancement
• Richard M. Hisey, chief investment officer, Berklee College of Music
• William Jarvis, managing director, philanthropic executive, Bank of America Private Bank
• Sue Menditto, senior director, accounting policy, NACUBO

Portfolio Construction

April 20, 2023 • 2–3:15 pm ET • 1.5 CPE Credits

With endowment returns sharply lower, college and university chief investment officers, investment committees, and outsourced chief investment offices continue to face difficult questions related to how best to deploy their assets. Is now the time to consider a portfolio rebalance? If not, what asset allocation discussions should institutions be making? What role should current and future spending needs play in conversations related to allocation decisions? This session will provide a deep dive into asset allocation considerations to ensure intergenerational equity in an era of even greater market volatility. Specifically, the speakers will discuss key factors in developing a resilient portfolio that includes risk tolerance, spending considerations, and rebalancing approaches. 

Learning Objectives

• Evaluate asset allocation strategies while incorporating lessons learned from the FY22 market declines
• Discover new ways to harness technology in portfolio management to improve decision making
• Learn how campus investment offices are incorporating emerging asset classes into their endowment portfolios

Speakers

• Tom Lenehan, chief investment officer, Wallace Foundation
• Deborah Spalding, chief investment officer, Commonfund
• George Suttles, executive director, Commonfund Institute (moderator)