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The half reserved for endowments has declined by 14percentt, or about $126 million, to $774 million, according to the Army.
Traditionally, discussion about endowments has focused on the balance between using the money for the current generation versus saving it for the benefit of future generations.
How deeply colleges dip into their endowments has become a contentious issue as some lawmakers have questioned the rapid pace of tuition increases at a time some colleges' resources have grown.
In the meantime, perhaps one-third of the value of university endowments has vanished in the recent financial market collapse.
"Of all the places I've worked," Douvos says, including Princeton University Investment Company – "it's, 'I want cash.' The dogma among endowments has been to focus on blowing out of these positions as soon as possible".
The value of their assets (i.e., endowments) has plummeted, they are over-leveraged, liabilities (debts) are increasing, liquidity is drying up, fixed costs continue to climb, their product is increasingly unaffordable and of questionable value in the marketplace, and income is declining.
Similar(53)
Endowments have also revolutionised commodities.
Private colleges' endowments' have shrivelled.
Pension funds and endowments have spurred this.
Historically, the largest endowments have posted the best investment returns.
Their endowments have also shrunk with the stockmarket.
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