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)

Describes how Saint Bonaventure University is using a ratio analysis based on a composite financial index to transform itself from an institution with adequate financial resources into a financially vibrant institution. (EV)

Why alternative investments? In a word: performance. Many higher education endowment and foundation managers are making increasing commitments to alternative investments, or AAs, in order to obtain higher returns and broader diversification for their investment portfolios than public securities instruments can usually provide. Learn how to handle…

The conventional wisdom suggests that colleges and universities that are highly dependent on endowment income should be risk-averse because a significant decrease in the value of the fund could potentially prove fatal. This article suggests that a conservative strategy may actually be self-defeating to institutions that rely heavily on endowment…

Offers insights on reigning in the costs of health care benefits from speakers at a two-day seminar for campus human resource professionals sponsored by TIAA-CREF Institute. Issues addressed include why chief financial officers must care, why higher education is different, drug costs, and changes in consumer behavior. (EV)

A series of articles provides coverage of experts discussing current endowment issues and implications for the future. The articles are: "The Spending Crisis: Spending Rules in Light of the Prolonged Bear Market,""A Principle Pair: Investment Insights from Yale's David Swensen,""Size Matters: Perspectives on the 2002…

Colleges and universities with mounting deficits may be tempted to sell surplus land for profit, but this is never a smart long-term choice. Through joint ventures and innovative financing, institutions can transform such holdings into development projects. In the current economy, there may be increased interest in such sites. (MSE)

When the Smithsonian Institution recently acquired a new financial management system, the concept of prototyping was used throughout the process, but in a broader sense than in software development. It was used to refine requirements, establish software management techniques, test a logistical system, and implement and apply the package. (MSE)

Many areas of investing have become so specialized and complex that they need to be addressed by a special effort. Chief financial officers must evaluate whether that effort can be delivered by internal staff or whether an outside contractor is appropriate. Diagnostic questions for making that determination are offered. (MSE)

The term life income fund refers to several gift vehicles, each providing donors or their designees with an income during their lifetime, with the remainder used to provide support to a nonprofit or charitable organization. These fund-raising vehicles can be very useful to a college or university, but the institution must evaluate carefully the…

The annual National Association of College and University Business Officers (NACUBO) Endowment Study measured the performance of college and university endowments. Preliminary results are presented in tables: (1) Institutions Ranked by Fiscal Year 2000 Market Value of Endowment Assets; (2) Investment Pool Nominal Returns for Years Ended June 30;…

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)

Findings of the 1985 National Association of College and University Business Officers' Comparative Performance Study and Endowment Questionnaire, with 277 participating institutions, are charted and discussed. (MSE)

Provides an overview of results of the 2002 National Association of College and University Business Officers (NACUBO) Endowment Study, which provides data on public and independent colleges' endowment performance. For an unprecedented second consecutive year, endowments lost value (6 percent). Includes a table of institutions' endowment…

Strategic planning enables colleges to direct discretionary dollars into high-impact areas that can enhance critical core activities, improving output. When the institution can disinvest financial resources in weak or noncritical core areas and redirect them through careful budgeting, it improves its chances for success. (MSE)