ELS24: Endowment Spending Considerations
Recorded On: 04/04/2024
Most institutional endowments have seen lower investment rates of return over the past two years. At the same time, there is pressure on campuses to spend more endowment dollars on student financial aid and other important functions. To deal with these pressures, some institutions made special spending appropriations, while others stayed the course in their spending dollars, resulting in modest spending increases over time due to the spending “smoothing” effect of multi-year trailing average returns. Can a single year of significant spending compromise intergenerational equity? Since returns can be unrealized, what will continued market volatility mean for institutions that significantly increase spending? What are the best strategies to ensure stability while increasing spending? This session’s experts will address such questions, especially given large swings in returns over the past two years. Panelists will also discuss the latest strategic investment practices that consider national and global economic policy decisions.
Learning Objectives
After this session, you will be able to—
- Evaluate trends in endowment spending rates and spending dollars by endowment size
- Appraise the challenges and opportunities of spending when spending in the short-term diverges from policy
- Assess spending rate policies and practices that can better meet institutionally specific resource needs
Recording
This session will be recorded. Registrants will receive an email when the recording is available.
Sponsor
This session in the 2024 Endowment Leadership Series is supported by:
CPE Available: 1.5 Credits in Finance
Each individual must register and attend separately to earn credit.
NACUBO is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website www.nasbaregistry.org
Event Information
- Level: Intermediate
- Prerequisites: Minimum 1-2 years of experience as a professional in higher education or a related private industry.
- Advanced Preparation: None
- Delivery Mode: Group internet based
- Field of Study: Finance
- Length: 75 minutes
How to Earn CPE Credit
CPE credit is awarded per session. You can only earn credit for attending a session live. CPE credit cannot be earned for watching the recordings.
To earn CPE credit, you will complete the following tasks under the Content tab, after the session has ended:
- Pass the CPE codeword quiz. Write down the codewords posted in the Zoom chat at random times throughout the session and complete the quiz at the end of the session.
- Submit the CPE check-out code displayed at the end of the session.
- Download your CPE certificate.
You have until 5 pm Eastern Time on April 5 to complete these three steps or report technology issues with this site to online@nacubo.org.
For more detailed instructions, review the CPE Instructions page.
Diane Hoehnke
Vice President, Finance
Wisconsin Lutheran College
A graduate of Carroll University in Wisconsin and a certified public accountant (CPA), Diane Hoehnke has been working in the non-profit sector for over 30 years. Although in the role of vice president for 2 years, Hoehnke has been at Wisconsin Lutheran College for 25 years.
James Bell
Senior Consultant
Crewcial Partners
James Bell, CFA, is a senior consultant and the director of hedge funds. Bell has been with Crewcial since 2008 and has over 20 years of investment experience. Bell helps provide the firm's clients with advice on asset allocation, manager selection, and performance evaluation/attribution. Bell also helps lead the firm's hedge-fund research efforts and has conducted manager research across all major asset classes, including US and international equity, credit, and private equity. Prior to joining Crewcial, Bell worked for Muirfield Capital, where he focused on hedge-fund sourcing and diligence for its fund-of-hedge-funds products.
Bell holds a BA in economics from The University of Chicago.
Charles Georgalas
Managing Director, Investment Team
Crewcial Partners
Charlie Georgalas, managing director at Crewcial Partners, LLC. Georgalas provides the firm’s clients with advice on asset allocation, manager selection, and performance evaluation/attribution, and he is an integral part of Crewcial’s research process. Georgalas has been with Crewcial (formerly known as Colonial Consulting) for 27 years and has 36 years of investment experience. He is currently the lead consultant for 24 of Crewcial’s clients and is one of the largest equity owners of Crewcial.
After completing his bachelor’s of science in management from SUNY Binghamton, Georgalas worked for The Bank of New York for over eight years. Georgalas rose through the ranks and focused on portfolio management for high-net-worth individuals for over six years, while also contributing to the bank’s research efforts by following the paper/forest products industry. Immediately prior to joining Crewcial, Georgalas worked for Kidder Peabody – Paine Webber, where he performed investment manager due diligence from 1993 to 1996.
Georgalas received his MBA from Fordham University and holds the CFA designation.
Ken Redd (Moderator)
Senior Director, Research and Policy Analysis
NACUBO
Kenneth E. Redd is senior director, research and policy analysis for NACUBO. At NACUBO, Redd directs the annual NACUBO-TIAA Study of Endowments, the NACUBO Tuition Discounting Study, and other studies on higher education finance issues.
In addition to his work at NACUBO, Redd also serves on the board of trustees for the Meadville Lombard School of Theology in Chicago, IL, and is a member of the board of directors for the Unitarian Universalist Common Endowment Fund (UUCEF) and the Association for the Study of Higher Education (ASHE).
Redd has a master’s degree in public affairs from the Hubert H. Humphrey School of Public Affairs, University of Minnesota.
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LockedCrewcial Partners is a 100% employee-owned, boutique-style investment firm that has been focused on providing customized investment advice to non-profit institutions since 1980. As a result, we've developed a deep level of experience to support such clients as they navigate the requirements and challenges inherent to their particular investment journey.
Our firm’s evolution over the past 40 years includes expanding our scope of research from US to international, building out a robust private-assets team, developing a comprehensive diverse-manager discovery process, and anticipating and developing solutions to the ever-expanding requirements and concerns of our clients, from investment policy statements to critical administrative responsibilities.
While our approach is, of course, rooted in strong performance, it also includes understanding each community and its needs. Crewcial is differentiated because we invest aspirationally, aiming for top-quartile performance inclusive of your mission. Our work in ESG and inclusion supports this by allowing our clients to invest in a manner that drives impact beyond nominal portfolio returns.
Contacts
- Michael Miller (CIO)
- Angela Matheny (Director Diverse Manager Equity)
- Stephane Ligonde (Director of Business Development)
- Charlie Georgalas (Senior Consultant & Managing Partner)
- James Bell (Consultant)
- Tuokpe Ajuyah (Head of ESG & Impact Investments)
- Jonathan Goldberg (Investment Committee Chair & Consultant)
