Ever wondered where our money is invested? Middlebury has an endowment of roughly $871 million dollars, composed of hundreds of gifts from donors. This money, invested in companies around the world, creates returns goes back to the college to support college spending.
Tuesday evening, in response to many student requests after the most recent Trustee’s meeting for more information on how our endowment is invested, Vice President and Treasurer of the college Patrick Norton hosted a meeting in Dana Auditorium that was attended by roughly 200 students. He was joined by Derek Hammel, who works as Director of Investments in the Treasurer’s Office, and Oliver Platts-Miller, an analyst at Investure LLC, the firm that works with the college to manage the endowment.
There’s a decent amount of literature available online about the college’s endowment through the Socially Responsible Investment Club (SRI) and the college’s website here and here . In short, the college has a yearly operating budget of $272 million dollars. $48 million (18% of total budget) of that comes from returns on our endowment. Norton emphasized, in a point he returned to many times throughout the meeting, that our endowment philosophy is to maintain budget stability and predictability. Norton also continually mentioned several points about Middlebury’s commitment to its students: Middlebury is committed to need blind admission and the promise to meet full need of each admitted student, small classes with a 9:1 professor to student ratio, and “A+” facilities. All of these things require a budget that is stable and predictable.
To give you a breakdown of how the money is invested, while the college investment committee decides what and where we invest our funds, they have hired Investure LLC, an investment firm to manage the funds for us. Investure, which also manages the assests for 5 other colleges and 6 foundations, then invests in a number of other managers who themselves invest in 15 to 30 companies. Complicated, I know.
Beyond that, we don’t actually know much about where our money goes. $4 million of the $871 is committed to a fund known as the “Sustainable Investments Initiative” which invests in socially responsible and sustainable companies. After the jump, the Q and A session…
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