The Investment Committee, Second Edition, offers essential guidance and resources for higher education board members to effectively manage endowments and align investment strategies with institutional missions.
WASHINGTON, Oct. 23, 2024 /PRNewswire-PRWeb/ -- The Association of Governing Boards of Universities and Colleges (AGB) is pleased to announce the release of the second edition of The Investment Committee, authored by Nicole Wellmann Kraus. The book supports the effective and prudent management of endowments, ensuring that they will provide current and ongoing funding for student financial aid, faculty, research, and other critical purposes. It emphasizes investment committee members' need for understanding both the global market landscape and the nuances of higher education governance and operations.
The updated edition retains valuable insights from the first edition (authored by Jay A. Yoder) while introducing new material to address current challenges in endowment management. It covers critical topics ranging from foundational concepts such as the investment committee's purpose, responsibilities, and composition to advanced considerations such as aligning the investment portfolio with the institution's mission, assessing risk appetite, determining effective spending policy, and more.
Nicole Wellmann Kraus, chief executive officer of Strategic Investment Group, brings 30 years of experience in the outsourced chief investment officer (OCIO) industry, with a rich background in advising investment committees. "The second edition of The Investment Committee is timely," she said. "Board members require the knowledge and tools to make informed, strategic decisions that will protect and grow their institution's endowments, particularly during a period when many colleges and universities are grappling with inflation, high prices, and a distressed business model."
The book describes best practices, identifies potential pitfalls, and provides other practical guidance, including sample committee charters for a private institution and a university-related foundation. Kraus offers advice for creating a diverse investment committee, advocating for a blend of professional expertise, cultural perspectives, and age ranges to gather a broad array of useful perspectives. She also underscores the need for clear performance expectations and regular evaluations to ensure members effectively contribute to the institution's financial goals.
College and university endowments currently are under scrutiny, facing calls from student activists to divest from companies associated with the Israel-Hamas war and legislators' criticism of investment policies targeting fossil fuels or advancing diversity. This may challenge boards to think about the fundamental values and objectives that inform their investment decisions while fulfilling fiduciary responsibilities, commitments to donors, and obligations to both current and future beneficiaries of the endowment.
David Bass, AGB executive director of philanthropic governance, reinforced the value of the investment committee. "Endowments play an important and growing role in funding student financial aid and other critical purposes. As institutions struggle to develop sustainable business models and manage costs, the investment committee's role is more crucial than ever," he said. "Institutions and their affiliated foundations have to sustain the long-term value of funds contributed to support the institution in perpetuity while striving to maximize funding for current students and other purposes. It's a challenging balancing act and one that requires exemplary governance practice and sophisticated investment strategy. This book provides invaluable guidance on both."
The book is available on the AGB website, and a digital e-book version is complimentary for members. The new edition is part of AGB's Effective Committee Series, published to strengthen the various committees that empower effective higher education board governance.
About AGB
At the Association of Governing Boards of Universities and Colleges (AGB), we believe in the power of higher education to transform lives, strengthen inclusive democracy, and support a thriving society. We believe that strong higher education starts with great governing boards. AGB provides advocacy, leading practices, educational resources, expert support, and renowned programs that advance board excellence for 40,000 AGB members from more than 2,000 institutions and foundations. For more than 100 years, AGB has been the trusted authority for board members, chief executives, board professionals, and key administrators on higher education governance and leadership. Learn more at AGB.org.
Media Contact
Chris Jacobs, Association of Governing Boards of Universities and Colleges, 1 202-776-0846, [email protected], www.AGB.org
SOURCE Association of Governing Boards of Universities and Colleges
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