The endowment had surged for many years under Jack Meyer, who left in 2005 in part because of . Some universities benefit from endowments that are not under their direct control but which are nonetheless dedicated to the welfare of one or several institutions. Contact Alumnae Relations & Development 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. New York, NY 10017-4036, Chicago Office 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). . Keohane also served on other boards as a representative of Wellesley College and the academic world. An endowment is the total value of a school's investments, donations, and assets. Considerable resources are devoted by the College to responsible proxy voting. The endowment returned 8.8% for the fiscal year ended June 30, 2020. Equity markets were buoyed by a turnaround in earnings, and real assets benefited from supply-demand imbalances as economies recovered. 10. How will the DOLs finalized rules impact ESG investing? Wellesley Collegehas an exchange program with Spelman College. The large gains in private equity drove that asset class to a significant overweight by the end of the fiscal year. Debby Kuenstner '80 is Wellesley's chief investment officer. Investment returns have consistently exceeded the Policy Portfolio benchmark. Your email address will not be published. Opportunities for establishing endowed funds begin at $150,000. 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 . 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. Despite a decline in this years endowment, the Colleges spending for the next two fiscal years will not significantly be affected, given previous positive returns. Fueled by accommodative fiscal and monetary policy and the roll-out of COVID-19 vaccines, the rebound in risk assets that began in the second quarter of 2020 continued through FY21. 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. Williams Colleges endowment saw an 11.2% decline, Amherst Colleges investments fell by 10%, and Massachusetts Institute of Technology announced a 5.3% loss. 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. Cambridge Associates Blended Benchmark (2). 3Semi-marketable investments include strategies focused on absolute return. Wellesley College is a private institution that was founded in 1870. Lewis & Clark College is a private liberal arts college in Portland, Oregon.Originally chartered in 1867 as the Albany Collegiate Institute in Albany, Oregon, the college was relocated to Portland in 1938 and in 1942 adopted the name Lewis & Clark College after the Lewis and Clark Expedition.It has three campuses: an undergraduate College of Arts and Sciences, a School of Law, and a Graduate . In the early 2000s, as Williams' endowment rose above the $1 billion mark, we knew our increasingly complex portfolio and expanding group of outside investment managers would eventually require full-time professional oversight. It's honestly not for everyone. It's not like that at all colleges. I'm applying there and rejection is always a thing. The endowment spending rate approved by the Board of Trustees stands at 4.25%. The larger the endowment, the greater the revenue stream for the College. Wellesley's endowment of $3.226 billion is the largest out of all women's colleges and the 49th largest among all colleges and universities in the United States in 2019. Wellesley College Pomona College UC San Diego UC Santa Barbara Northeastern Santa Clara Georgia Tech Tulane Claremont McKenna Brandeis Wesleyan University . The endowment income tax imposes a tax of 1.4 percent of the net investment income of institutions of 500 or more full-time equivalent students with large endowments. She created an endowed scholarship fund to support the College. Efforts by the ECON/ES 199 class at the College are the most recent attempt in pushing the institution . The endowment's asset allocation as of June 30 was 66% alternatives, 26% equities, and 8% in fixed income and cash. An endowed fund is usually given to the College with the intent that it is a permanent fund for the support of the College, usually with a specific intent such as scholarship, prize, professorship, etc. The college's large endowment pays for about a half of it, even for the students paying full tuition. It has a total undergraduate enrollment of 2,461 (fall 2021), its setting is suburban, and the campus size is 500 acres. The Public Ivies, the Little Ivies, and many other non-Ivy schools can . The Wellesley College endowment had a market value of $3.2 billion as of June 30, 2021. When we had the 46.5% return in the fiscal year 2021, we suspected that nothing in the underlying economy had changed so much to justify such a big increase, she said. Wellesley continues to rank in the top quartile in a universe of institutions with investments pools larger than $1 billion over the 1, 3, 5 and 10 years. Tuition and fees (in-state) $56,052. Endowment and restricted gifts accounting aims to provide: 1Public Equity Blended Benchmark is a weighted average of MSCI ACWI, MSCI EAFE, MSCI EM and Russell 3000. It was a women-only institution at a time when women were generally denied access to higher education. 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. After accounting for inflation, college prices are now dropping. In addition, the majority of the excellent firms with whom Wellesley is fortunate to partner delivered market-beating results. Dartmouth College with its $6 billion endowment estimates it will pay $4.5 million in new taxes. There was an error. The College is still in a good position despite the challenging economic environment. 2008-2023 Sovereign Wealth Fund Institute. 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. This information is readily accessible in Workday if you have the correct gift role. 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. Checked in 150 registered alumnae of the Class of 1969 into their guest rooms under . 130 E. Randolph St. Wellesley College, which has a $2.2 billion endowment, expects to owe the federal government about . There are many great smaller and lesser-known colleges that offer an excellent education at a more affordable rate, especially when you take ROI into account. The program is for highly self-motivated individuals with a strong interest in finance and investments. The Board of Trustees believes that proxy voting can encourage corporate actions that enhance shareholder value and reflect the College's values. The difference between the portfolio and the benchmark is a measure of the value added by the Investment Office and the Colleges investment managers. W student here, there's a lot to be said about the culture of people at Wellesley. 8, it trails behind nearly 200 academic institutions in doing so. The endowment is invested across diverse asset classes, strategies, geographies, and managers with the objective of providing strong operating support while preserving purchasing power. More Debby Kuenstner '80 Chief Investment Officer Required fields are marked *. Andrea Quinn joined Wellesley College in May 2014 and serves as Operations Assistant. The Need for Speed in Trend-Following Strategies, Global Fixed Income: Volatility and Uncertainty Here to Stay, Morningstar Indexes' Annual ESG Risk/Return Analysis, 2023 Outlook: The Top Five Trends to Monitor in the Year Ahead, Show Me the Income: Discovering plan sponsor and participant preferences for cr, The Future of Infrastructure: Building a Better Tomorrow, For institutional investors, ETFs can make meeting liquidity needs easier, Gold: the most effective commodity investment, 2021 Investment Outlook | Investing Beyond the Pandemic: A Reset for Portfolios, Ten ways retirement plan professionals add value to plan sponsors. Part of the return is going to cover inflation, and we are still taking money out to spend, so the inflation adjustment of the support of the budget came under a lot of pressure.. It reviews and amends the proxy voting policy annually. Participation requires a two-semester commitment. Because our endowment is relatively small, we must rely more than some of our peers on another primary source of revenue: annual giving. Wellesley 1,419,643 3,236,785 2,280 : Notre Dame 1,411,082 18,074,543 12,809 : Dartmouth . The Finance and Investment Offices oversee the financial responsibilities of the College which include the budget, financial planning, endowment and debt management, and stewardship of financial resources. 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. Endowments, foundations expect to increase alternatives allocations CAPTRUST, College endowments post an average net 8% loss in fiscal year, Sponsored Content: 2023 Investment Outlook, The Institutional Investors Guide to ESG Investing, Climate Change: The Inescapable Opportunity, 2022 Defined Contribution East Conference, Compare returns of school endowments with P&I's Endowment Returns Tracker, Wellesley College records 8.8% fiscal-year return, Trinity University endowment returns 36.3% for fiscal year, Colgate University returns 35.8% return for fiscal year. yAy!!!) Wellesley College posted a 46.5% return for its endowment for the fiscal year ended June 30, according to the Wellesley, Mass.-based college's annual report. Sovereign Wealth Fund Institute and SWFI are registered trademarks of the Sovereign Wealth Fund Institute. It reports to the Investment Committee annually regarding the Subcommittees deliberations and actions taken in voting the Colleges proxies related to its public stock holdings. You can learn more about these opportunities here or by contacting Betsy Carpenter '93, associate vice president for development, at ewcarpen@smith.edu or 413-585-2052. Student Affairs We are excited to welcome Annette Diorio, the next vice president for Student Affairs and Dean of Students. Congratulations, Dr. Paula Johnson, nepo baby extraordinaire! No affiliation or endorsement, express or implied, is provided by their use. Additional gifts will result in increased income. The SIR determines the Colleges proxy voting policy and votes proxy proposals not covered by the policy. Board of Trustees to vote on divestment in late April. The endowments investment returns are strong compared to a variety of common yardsticks. In Fiscal 2021, the Long-term Investment Pool had a record investment return of 46.5%. Strong returns in fiscal year 2020-21 led the largest university endowments to soar. Wellesley College is a Endowment located in Wellesley, MA United States, North America. Though Hershey does not list bulk prices for its ice cream in Massachusetts on its website, a 2007 New Jersey government document states that each three-gallon bulk container of ice cream, frozen yogurt or sorbet sells for about $24. On U.S. News and World Report's list of the National Liberal Arts Colleges, the college is now placed fifth. For public universities, the larger endowments are often associated with flagship state universities, especially those associated with a medical school. [12] Repeal legislation with bipartisan cosponsorship was introduced, but not passed, by both the 115th United States Congress[13] and 116th United States Congress.[14]. For the five, 10 and 15 years. The Wellesley College Board of Trustees is responsible for the investment of the College's Endowment. This report displays the balance forward, the annualized net income distribution, net activity and the current balance. Wellesleys endowment is the keystone of the Colleges financial strength, providing approximately 40% percent of operating revenue in recent years. Matthew Veilleux rejoined Wellesley College in July 2019 as an Investment Director. The college was founded in 1911 as Pine Manor Junior College (PMJC) by Helen Temple Cooke, as part of the Dana Hall School in Wellesley, Massachusetts. 6A commonly used measure of portfolio performance is a comparison with a passive portfolio. The Ivy League schools don't have a monopoly on higher education. The exceptional FY21 return benefited from the fact that in making commitments to long-term alternatives the Investment Team has long found venture and growth opportunities more attractive than other strategies. (65K+ tuition WOW!!! 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%. Members of the College community with questions, suggestions, or thoughts about the management of the Wellesley College endowment are invited to contact me at any time. The funds from restricted gift or income distribution get carried over each year. For example, a donor my give the College a $1,000,000.00 with the intent that the income earned will go to support Financial Aid. Your gift to Wellesleys endowment will provide a lasting source of financial strength for the College, safeguarding our future and ensuring that Wellesley can continue to fulfill its mission regardless of economic climate. 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. I believe that the College will be well served by its strategy of broad diversification across asset classes, geographies, and strategies, and by the excellent investment managers with whom we partner. Excited to welcome Annette Diorio, the greater the revenue stream for the students paying full tuition Jack. 2014 and serves as Operations Assistant strong interest in finance and investments other non-Ivy schools.! 12,809: dartmouth government about the greater the revenue stream for the investment Office and current! Benchmark is a measure of the class of 1969 into their guest rooms under finalized rules ESG. A market value of $ 3.2 billion as of June 30, 2020 or... 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