Asserts that while the Nasdaq bubble did burst, the new economy is real and that failure to understand the rules of the digital economy can lead to substandard investment portfolio performance. Offers guidelines for higher education institutional investors. (EV)

Faculty members should consider becoming more involved in the oversight of their personal retirement funds. Both price and inflation risks are best controlled by taking a balanced or diversified approach to investing, with a portfolio based on a predetermined percentage of each type of investment. (MSE)

Identifies various roles of a college or university's endowment fund, such as serving as a rainy day fund, funding one-time capital requirements, and enhancing program quality. Considers implications of various roles for asset allocation and endowment spending. (DB)

With the variety of available investment options and a volatile securities market, it is vital that boards make wise choices about employee retirement programs. Issues to consider when discussing pension-plan changes are presented. (Author/MLW)

As the business environment becomes more global, so should a college or university's investment portfolio. Global diversification is becoming increasingly important in controlling risk and enhancing return. This article examines the size of bond markets and returns on bond investments in several nations, performance of world equity markets, and…

College and university business officers are encouraged to implement an endowment distribution method that increases the amount distributed by a fixed annual percentage based on asset mix, inflation, and expected return. Such a payout system provides a predictable, steadily increasing level of endowment income yet maintains the purchasing power of…

Two important responsibilities of a trustee investment committee are the selection of the managers and the asset allocation of the endowment fund. Benefits from outside management include the ability to select firms that specialize in a particular segment of the market and the spreading of assets to reduce risk. (Author/MLW)

College and university employees are exposed to considerable risk in the management of their retirement funds, but there are also extraordinary opportunities for careful investors. Colleges should help employees gain knowledge of investing and ensure that a broad range of adequate investment options are available. (MSE)

The article recommends that colleges and universities have a clear and detailed endowment policy that will meet donors' demands for accountability. The disclosure document needs to address investment policy and use of gifts and be communicated to trustees and staff. A collaborative relationship between fund-raising and financial operations is…

To meet demand for increased funding, in a period of probable declining investment returns, colleges and universities must fine-tune their asset suballocations to enhance returns. While the institution should adhere to major asset allocation classes, there can be much flexibility, and enhanced return, in shifting suballocations within the major…

Issues in college divestiture of investments based on moral considerations, such as South Africa's apartheid system, are outlined. A governing board's options, role, and responsibility to the institution in the face of such decisions are discussed. (MSE)

Faced with deteriorating physical plants, a need for new facilities, and a shortage of financial aid funds, colleges and universities have become players in a debt-financing game, which can hasten the organization's demise. The board must ensure that today's securities do not become tomorrow's junk bonds. (Author/MSE)

College administrators have an obligation to educate faculty and staff as consumers of retirement plan services. Employers can face liability if they limit plan participation to overly restrictive investment alternatives. A task force representing employees should be appointed to make vendor selections. (MSE)

In retirement planning, the college or university human resources manager is positioned as representative of both the college administration, which has a simple legal obligation to employees, and employees, who must plan for financial security and independence. This administrator can affect employees' financial well-being by effective retirement…

Successful college and university investments hinge on an asset allocation strategy capable of meeting the institution's needs for income and growth in principal at the lowest possible risk. Periodic adjustments must be made when there is a shift in the institution's risk tolerance, modification in need for income distribution, and changes in…