A Resource for Financial Sustainability
Dickinson’s endowment consists of more than 880 individual funds established by donors and quasi-endowed by the college. Endowed funds are managed to ensure that the college carries out donors’ charitable intent in perpetuity by investing assets in a manner that is intended to produce results that exceed the endowment spending rate plus inflation.
In 2006, Dickinson joined the Investure consortium, an outsourced chief investment office that serves the needs of a select group of prestigious colleges and foundations. This relationship allows Dickinson to benefit from the capabilities and advantages of a larger investment office which would not be accessible to an endowment of our size. Investure manages over $11 billion in assets across all asset classes, including approximately 80%, or $358 million of Dickinson’s endowment (the remaining 20% of Dickinson’s endowment is primarily held in trusts in accordance with donor agreements). Dickinson’s endowment pool has grown by $148 million since joining Investure (through June 30, 2014) and has experienced exceptional returns as confirmed by the 2013 NACUBO-Commonfund Study of Endowments, which places Dickinson in the 94th percentile for all reported 10-year returns (510 colleges and universities).
Investure has, and continues to be, a partner with Dickinson and other consortium clients in exploring the issue of sustainable investing and what it means within our combined portfolio. The following are some of the highlights of this collaboration:
- Sustainable Investment Initiative: In 2010, Investure created a Sustainable Series within its Global Equity Fund in response to requests made by clients. The core of the Sustainable Series consists of investments in high-quality businesses with high-quality management teams that have taken a long-term approach to managing the economic, environmental and social aspects of their business. The Sustainable Series may also include more thematic investments with managers who focus on specific sustainability issues (clean energy, water, climate change, green real estate, etc.). Dickinson committed $4 million of its pooled endowment to this initiative in 2010 and doubled its commitment to $8 million in 2014.
- Proxy Voting Principles: In 2012, consortium clients engaged with Investure to develop a set of proxy voting principles to be shared with fund managers. These principles reflect the core values of many consortium clients with regard to socially responsible investing and are intended to promote a culture of active shareholder engagement.
- Sustainable Investments Reporting: Investure provides the investment committee of the board of trustees with a quarterly analysis of sustainability investments within the endowment. This report shows both specific investments in sustainability within the portfolio as well as managers that utilize environmental, social and governance (“ESG”) criteria in their investment process. As of June 30, 2014, Dickinson’s exposure to sustainability investments in the endowment pool totaled 10%.
In addition to the focus on sustainability within our endowment portfolio, the enhanced returns we have experienced from the endowment pool have allowed us to increase our direct investments in sustainability on campus and within our community. Annual spending from the endowment supports 11% of the Dickinson operating budget and provides funding for other restricted funds as designated by donors. Spending from the endowment for FY15 is expected to exceed $17 million, which provides ongoing support for financial aid, academic programming and faculty salary support, facilities maintenance and a variety of other purposes. Examples of Dickinson’s direct investments in environmental sustainability can be found under the section on Expenditures.