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Post by Pakachoag Phreek on Oct 8, 2016 15:38:16 GMT -5
HC has published a bit of financial information for the fiscal year ending June 30, 2016.
Endowment values are not provided, but the value of long-term investments is.
For 2015,
Long-term investments value: $729.3 million
Endowment value $721.3 million
For 2016
Long term investments value $686.7 million
Endowment value: Not given, but very likely below $685 million (unless endowment monies were shifted to short-term investments).
Endowment value likely to be down between 4.5 and 5 percent from 2015..
IMO, this decline puts the kibosh on joining the HE, as HC cannot afford M's ice hockey playing in the HE until the endowment recovers.
Long term debt increased by $24 million. This reflects the bonds that were issued to finance that portion of Luth not funded by the generous donors.
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Post by Chu Chu on Oct 10, 2016 14:41:15 GMT -5
How are HC's endowment funds invested? Who is responsible and how are they paid? We should do better.
I invest using Vanguard, and the Total Stock Market Fund is the keystone fund for me. It has a YTD return of 8.0%, 12 mo return of 11.4%, 3 year return of 11.7% and a 5 year return of 14.4%. Why don't we just put our money there?
I am currently the President of the Board of a health philanthropy in my area. We converted all of our investments to low fee Vanguard Funds 4 years ago, and our returns have consistently beaten what we would have made with our old advisors, due in large part to much lower fees and better diversity.
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Post by KY Crusader 75 on Oct 10, 2016 15:24:26 GMT -5
How are HC's endowment funds invested? Who is responsible and how are they paid? We should do better. I invest using Vanguard, and the Total Stock Market Fund is the keystone fund for me. It has a YTD return of 8.0%, 12 mo return of 11.4%, 3 year return of 11.7% and a 5 year return of 14.4%. Why don't we just put our money there? I am currently the President of the Board of a health philanthropy in my area. We converted all of our investments to low fee Vanguard Funds 4 years ago, and our returns have consistently beaten what we would have made with our old advisors, due in large part to much lower fees and better diversity. I cannot tell you how impressed I am/how happy I am to hear this. I think that you've made a great decision for your charity. Recently retired, I am putting all my assets into low cost index funds as well. Since the market is the total of all the mutual funds and individually held stocks, it is impossible for the actively managed funds, in aggregate, to beat the market as they have those high expenses for management. Why pay someone 1.0% to manage a fund when you can buy the entire market via an index fund with an expense ratio under 0.1%  Don't make the mistake of thinking that 1% is low--if your investment goes up, say, 6% and you pay 1% to a manager you have lost 17% of your gain..... |
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Post by Pakachoag Phreek on Oct 10, 2016 15:48:38 GMT -5
In 2015, for HC: dollars in millions (no values for ROI by sector) Fixed income U.S. Government (debt?) $28.5 Foreign (debt?) $22.0 Global equities U.S. $136.7 International (developed countries) $119.6 Emerging markets $62.1 Long-short $95.6 Absolute return $112.8 Private equity $68.1 Commodities $23.9 Energy $17.4 Real Estate $21.8 Split Interest $8.7 ______________________________ Net return on investments $12.5 Direct Management fees $3.8 (included in calculating net return) __________________________________ Bowdoin did spectacularly well in 2014 and 2015. Direct management fees are not given, but Bowfoin had a net investment return of $172.7M in 2015. If Druckenmiller is not still on Bowdoin's investment committee, he serves as an informal adviser. en.wikipedia.org/wiki/Stanley_DruckenmillerIf HC had returns like Bowdoin's, cost of HE membership would be much less of an issue. A $172M increase in endowment value would annually add $7.75M to the college's coffers to cover annual operating expenses. |
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Post by bison137 on Oct 10, 2016 20:09:13 GMT -5
How are HC's endowment funds invested? Who is responsible and how are they paid? We should do better. I invest using Vanguard, and the Total Stock Market Fund is the keystone fund for me. It has a YTD return of 8.0%, 12 mo return of 11.4%, 3 year return of 11.7% and a 5 year return of 14.4%. Why don't we just put our money there? I am currently the President of the Board of a health philanthropy in my area. We converted all of our investments to low fee Vanguard Funds 4 years ago, and our returns have consistently beaten what we would have made with our old advisors, due in large part to much lower fees and better diversity. Don't forget that the endowment figures are for the fiscal year ending 6/30/16, when the returns were significantly lower than the current YTD or 12-month. The S&P returned 1.5% for the fiscal year used by colleges, and the NASDAQ returned -3.7%. Additionally international returns were generally poor, as were returns on many alternative investments. The HC return seems to be on the low side, but it appears that the majority of colleges lost endowment for the year - which would have been the case even if they had been in a mix of index funds. |
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Post by sarasota on Oct 10, 2016 22:25:05 GMT -5
Chu- Much of institutional investing is hidebound. Congratulations for using your common sense.
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Post by HC1843 on Oct 11, 2016 4:50:39 GMT -5
In 2015, for HC: dollars in millions (no values for ROI by sector) Fixed income U.S. Government (debt?) $28.5 Foreign (debt?) $22.0 Global equities U.S. $136.7 International (developed countries) $119.6 Emerging markets $62.1 Long-short $95.6 Absolute return $112.8 Private equity $68.1 Commodities $23.9 Energy $17.4 Real Estate $21.8 Split Interest $8.7 ______________________________ Net return on investments $12.5 Direct Management fees $3.8 (included in calculating net return) __________________________________ Bowdoin did spectacularly well in 2014 and 2015. Direct management fees are not given, but Bowfoin had a net investment return of $172.7M in 2015. If Druckenmiller is not still on Bowdoin's investment committee, he serves as an informal adviser. en.wikipedia.org/wiki/Stanley_DruckenmillerIf HC had returns like Bowdoin's, cost of HE membership would be much less of an issue. A $172M increase in endowment value would annually add $7.75M to the college's coffers to cover annual operating expenses. Bowdoin lost 1.4% in '15-16. Oct. Press release. Cheers. |
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Post by Pakachoag Phreek on Feb 10, 2017 14:49:07 GMT -5
I'll cross-post a link from another thread. www.nytimes.com/2017/02/09/business/college-endowment-investment-returns.html?_r=0For Holy Cross in 2016, Endowment value July 2015, $721.3M Investment return -24 million Contributions to endowment +10 million Appropriated for college operations -27 million Endowment value June 2016, $681M, a decline of -5.5 percent For comparison, Colgate lost -30 Million on investment return Colgate's endowment value declined by 7.3 percent. For Colgate, $337M of $922M in its long term investment pool was in hedges. Holy Cross did not break out how much of its investment was in hedges. |
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Post by ncaam on Feb 10, 2017 16:12:58 GMT -5
I know what djt would say, "he's fired!"
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Post by hcgrad94 on Feb 10, 2017 18:40:14 GMT -5
Chu- Much of institutional investing is hidebound. Congratulations for using your common sense. Hidebound in what way? |
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Post by hchoops on Feb 10, 2017 19:03:29 GMT -5
I know what djt would say, "he's fired!" But if tweeted, would it be spelled correctly ? |
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Post by sarasota on Feb 11, 2017 0:43:34 GMT -5
hoops- He's a multi zillionaire business man with a wonderful family and The President of the United States of America, but you joke about his spelling.
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Don't make the mistake of thinking that 1% is low--if your investment goes up, say, 6% and you pay 1% to a manager you have lost 17% of your gain.....
