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One endowment expert, who did not want to comment on the record about a particular school's performance, said that diversification would provide better returns for the risk, but he cautioned that asset allocation to various asset classes was crucial.
The investment income from one endowment has supported fellowships for professors and other researchers from overseas.
One endowment chief noted that by shifting to funds that can be sold more easily, a more conservative strategy, Harvard may be forgoing some gains.
As one endowment manager explained: "So many of our firms raised a lot of money ending a year ago and have not come back since the world changed.
When a factor is scarce, the size of the rent will reflect the differences in quality, ease of access, or desirable geographic location of one endowment relative to others.
By delaying the release until May and tying it to a calendar year, not a fiscal year, one endowment specialist noted, pay and performance will cover different periods, which may make it harder to connect performance and compensation and thus defuse criticism of pay packages.
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A new research university is scheduled to launch soon with a day-one endowment of $10 billion, equal to what it took MIT 142 years to accumulate.
As one expert on endowments noted, it was an easy year to have a relatively high number, but for endowment managers the question was how they did against the internal benchmarks they create for each asset class.
This states that desirable goods are more valuable when they are part of one's endowment, i.e. individuals put more value on the loss of something they own or have experienced than its acquirement when they have not experienced it [ 81].
Deploying skills is costless within the limit of one's endowment, and it is subject to a constant marginal cost for any skill level beyond one's endowment, as in Fig. 2. In other words, workers are allowed to deploy a level of skills that goes beyond their endowments provided they pay a utility cost.
According to one former endowment official, it was Ms. Hingston who tried last December to delay approval of a grant for a California production of "Homebody/Kabul," Tony Kushner's play about a British woman who disappears in Taliban-era Afghanistan.
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