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The endowment is a diversified investment portfolio primarily composed of gifts to the college, as well as the investment appreciation of those gifts over time. The purpose of the endowment is to support the college’s mission in perpetuity. Achieving this objective means that two primary objectives must be satisfied in ways that maintain intergenerational equity: 1) providing ongoing support for current programs and operations; while 2) protecting the purchasing power of the endowment from inflation and excessive spending.

The endowment is a major source of the college’s income and is used to support many aspects of the ³Ô¹ÏÍø experience, including financial aid, professorships, and academic support.

How is the endowment managed?

The ³Ô¹ÏÍø Investment Committee, a functional committee of the Board of Trustees, determines the investment and asset allocation strategy for the endowment. The Investment Committee employs investment consultants who assist in determining the overall investment strategy of the endowment, as well as recommending investment managers for the portfolio.  College employees, including the Vice President for Finance and Administration and the Director of Investments, assist the Investment Committee and consultants in their duties. Each member of the Investment Committee, the college’s investment consultants, and college staff have a fiduciary duty to the college — i.e., all investment decisions and related actions must be made exclusively in the best interests of the college. The full Board of Trustees ratifies and approves the investment and asset allocation strategy for the endowment.

How is the endowment invested?

Whitman invests in a diverse array of asset classes, including public equities, private equities, private credit, real estate, and fixed income. The endowment typically does not make direct equity or bond investments in specific companies or entities, but instead hires 40-50 investment managers who make decisions on behalf of their investment funds based on their knowledge, expertise, and experience. These investment managers pool funds from the college’s endowment with other outside investors’ funds. Once these commingled funds are formed, the investment managers make direct investments to support the fund’s performance and risk objectives as they seek to outperform their benchmarks. 

Performance and Risk

The goal of the college’s endowment is to prudently maximize returns to support the college, while avoiding permanent loss of investment capital. The Investment Committee continuously analyzes the performance of the endowment — versus both benchmarks and peers — to ensure it is meeting the portfolio’s return objectives while maintaining an acceptable level of risk. The college’s endowment returns have consistently been in the top quartile of peer endowment returns over long time horizons.

Mission-Aligned Investments

In addition to investments made through investment managers, the endowment also includes “Mission-Aligned Investments.” Although composing a relatively small portion of the endowment — approximately 5% — these investments provide both a financial return to the college as well as ancillary benefits that support the college’s strategic priorities. Some mission-aligned investments include the student investment fund (to advance the academic mission), farm properties (to garner additional farm gifts and advance the academic mission), and local rental properties (to provide housing for faculty, staff, and students). The Investment Committee monitors endowment performance from two different perspectives: including, and also excluding, these mission-aligned investments.

Additional Information

• Endowment FAQs
• Endowment Divestment Policy