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FREQUENTLY ASKED QUESTIONS
Simply stated, an endowment is the permanent capital of a university, which provides funding for the academic mission of the institution for current and future students. Why does the endowment matter? The endowment lends fiscal stability to Georgetown and provides critical resources which enable the university to offer competitive tuition, support high-quality academic programs, attract top faculty, and ensure that the brightest students have access to a Georgetown education. How large is Georgetown's endowment?
How does the size of Georgetown's endowment compare to that of other schools? A top 25-ranked school, Georgetown has a modest endowment compared to schools with which it competes academically. According to the 2008 report of the National Association of College and University Business Officers (NACUBO), Dartmouth, by contrast, has an endowment of roughly $3.7 billion, UVA has an endowment of about $4.6 billion, Notre Dame has an endowment around $6.2 billion, and Yale and Harvard have roughly $22.9 billion and $36.6 billion, respectively. What percentage of Georgetown's operating budget does the endowment fund?
What is Georgetown's spending rate? The spending rate was raised to 6% in 2007 and is computed as a weighted 5-year average of the endowment market value. For fiscal year 2008, the endowment's payout was 5.55%. What is the endowment-to-full-time-student ratio? For fiscal year 2008, the endowment assets per full-time student equaled $77,948. What is the objective of the Georgetown University endowment? The university's primary investment objective for the endowment is to achieve the highest long-term total investment return on investment assets that is compatible with the university's risk tolerance and time horizons and consistent with prudent investment practices. What return did the endowment have in fiscal year 2008?
What is Georgetown's NACUBO ranking?
Who is responsible for fundraising for the endowment? The Office of Advancement is responsible for fundraising in support of the mission of the university, its faculty and students. Endowment policy is set by the chief investment officer of the university and the members of the Subcommittee on Investments of the Board of Directors. How does the Investment Office select managers? One of the primary ways in which value is added to the endowment investment portfolio is through investment manager selection. The selection process is designed to ensure that the portfolio has access to a broad array of the most skilled and highest quality investment managers. It is also an important risk management tool. In addition, managing risk through investment manager selection facilitates efficient portfolio management, reducing the number of providers to the minimum required to provide investment diversification and eliminating the need to over-diversify so as to minimize operational or business risk. The ultimate number of managers employed is predicated on the amount of assets individual investment managers can effectively manage, the prudent percentage of their total assets under management that would be represented by the overall portfolio, and the number of uncorrelated attractive managers that can be identified. What is Georgetown's policy with regard to socially responsible investing? Georgetown is strongly committed to investing in a socially responsible manner. To that end, the university Faculty Senate appoints members to the Committee on Investments and Social Responsibility, which is charged with reviewing all shareholder proposals on social responsibility. The Committee is comprised of ten people who form a broad representation of the university community, including members of the faculty, staff, student body, and Office of Campus Ministry. How does Georgetown's Jesuit identity impact its investment decisions? The Committee on Investments and Social Responsibility, which includes one representative from the Office of Campus Ministry, takes Georgetown's Jesuit identity into account when making decisions regarding shareholder proposals. Perhaps one of the greatest strengths of the university's Jesuit heritage is its firm belief in the importance of the freedom of intellectual thought and diversity of opinion. How is the Investment Office related to the Office of Advancement? The Office of Advancement is responsible for developing relationships with key constituencies, connecting and reconnecting alumni, and working with donors to highlight Georgetown's unique position in higher education and the opportunities for partnership with the university. The Investment Office is responsible for investing the endowment portfolio, adding value through asset allocation and the selection of investment managers. Why are gifts important to Georgetown's endowment? Gifts are essential to Georgetown because it is only through donations that the university endowment will catch up to and remain viable against other competitive educational institutions. Investments are subject to overall market conditions and encourage slow growth. Donations not only add significantly to the size of the endowment more immediately but also increase the amount of money being invested, making larger investment returns possible. If I want to make a gift, whom should I contact? If you would like to make a gift, please contact Bryn Dolan in the Office of Advancement at (202) 687-0805. We thank you for your support. How can I get more information?
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3300 Whitehaven Street, NW Suite 3200 Washington, DC 20007 Phone: (202) 687-6881 investmentoffice@georgetown.edu