A Note on the Current Economic Situation

 As the current economic climate has severely damaged investment values globally, institutional endowments are anything but immune, and have unfortunately faced the full force of this loss of value.  From 2004-2008, Dickinson’s Endowment saw record returns and took great strides, eventually building a market value of $349.8 million by fiscal year ‘08.  However, as global markets plummeted due to the residual effects of the housing bubble, leading to the worst financial crisis since the Great Depression, college and university endowments lost value. On average, college and university endowments and affiliated foundations returned -18.7 percent (net of fees) in fiscal year ’09 (NACUBO-Commonfund Study of Endowments).  Dickinson’s Endowment held ground at $286.8 million by fiscal year ‘09, a decrease of -18 percent.    

The College and Investure LLC, Dickinson’s Endowment investment managers, has made a key effort to rebuild and preserve the Endowment during continued unstable economic times.  As of July 21, 2010 the College Endowment’s market value is $312.7 million, a 9% gain compared to fiscal year ‘09.   The Endowment’s performance track-record reflects the College’s commitment and can be seen graphically in “Facts and Figures”, or more quantitatively in the “Budget & Endowment Report” sections of this website.  Additionally, the College has taken a firm stance on carefully utilizing the Endowment’s capital.  With an endowment spending policy of no more than 5% per year, the College protects the intergenerational equity for future students.    

Dickinson College has given considerable thought to the issue of SRI in these challenging economic times. While the College, like many other institutions, has felt the negative effects of the financial crisis, it has remained committed to balancing environmental, social and financial outcomes in making fiscal decisions, as a way to ensure the protection of valuable assets for the future. In a statement from July 2009, College Treasurer Annette Parker wrote that “the College approaches its finances from a Triple Bottom Line perspective, i.e., the management of three bottom lines or net business outcomes: financial, social, and environmental.” Though the report acknowledges the fact that the College’s endowment has suffered monetary losses, it still contains plans to balance the budget, increase financial aid for students, and remain true to the Strategic Plan goals and initiatives. The continuing support of socially responsible investment in a time of turbulence marks the important role that this type of thinking plays in Dickinson’s financial policies. In June of 2010, Dickinson approved an initial $3 million allocation to the Sustainable Investments Initiative, managed by Investure. The  initiative is planned to reach over $80 million.  More information can be found here.