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Howard University Endowment Fund

Name: Howard University Endowment

Assets Under Management: $341 Million (Source: Howard University on 6/30/2014)

Annual Report: Howard University Finance and Investment Club

Portfolio Insights: “FY2013 was the fourth consecutive year of positive operating results at Howard, totaling $10 million for the year ended June 30, 2013. Net assets were positively impacted primarily by the restructuring of the retiree healthcare program to fully employ Medicare for certain retirees and improved investment performance. Howard’s balance sheet continues to be well positioned to support both long and short term financial needs through long-term public debt ($341 million) and a multi-bank three-year line of credit ($135 million).” (Source)

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Top Howard University Endowment Fund Headlines:

1) Howard University topped the list with more than $513 million in its endowment, despite a drop of more than $20 million from last year’s list. The list, which also accounts for return on investment for the top 10 endowments, posts North Carolina A&T State University as the HBCU with the highest yield with 17. 5 percent. William Foster, Publisher and Editor of HBCU Money, says that graduation rates are a short-term factor in the long-term building of Black college endowments.

“The demographics are working against us because we have the lowest graduation rates in this country,” says Foster, a graduate of Virginia State University and Prairie View A&M University.  “This matter is at the heart of our financial issue. Larger alumni pools increase the probability of producing high-quality donors or those who can make transformative donations.” (Source)

2) Donations will be gifted to the Howard University endowment through Howard University’s Annual Fund. Fundraise.com, a social fundraising platform, will serve as an intermediary — holding and dispersing the funds to Howard University. The endowment is the lifeline of our university and an important source of revenue for the school — supporting faculty, research and development, public service programs and activities, student financial aid, and future operations. (Source)

3) NEW YORK, April 4, 2013 — BNY Mellon, the global leader in investment management and investment services, announced that it has been named custodian for Howard University’s $1.1 billion endowment and pension plan. BNY Mellon will provide custody, accounting, benefit disbursements, and global risk solutions. BNY Mellon will also serve as trustee for Howard University’s pension plan.

“We needed a business partner with a strong track-record of working with endowments and academic administration,” said Robert M. Tarola, senior vice president for administration, chief financial officer and treasurer at Howard University. “Both from a human and technology resource perspective, BNY Mellon can assist us in administering these plans for the benefit of Howard, its faculty and its staff.”

“We’re proud to win the trust and confidence of such a prominent American institution as Howard University,” said Samir Pandiri, global head of Asset Servicing at BNY Mellon. “With this appointment, we’ll bring a range of investment services and expertise in support of the university’s team, its mission, employees and retirees.” (Source)

4) Jul 27, 2014 – Howard University recently received a $500,000 endowment from the Phi Beta Sigma fraternity, a gift the organization called a “reflection on its glorious past and the enormous achievements it has attained to date.” On July 25, Phi Sigma Beta Inc. International President Jonathan Mason presented the gift to newly appointed Howard University President Wayne A.I. Frederick.

In a release announcing the presentation, the fraternity called Howard University “beacon light from which all of the [Phi Sigma Beta] organization’s amazing accomplishments have shined.” (Source)

5) Howard University students have agreed to contribute $15 apiece to the school’s endowment each semester to raise about $2.5 million in four years and to underscore alumni support. Howard spokesman Henry Duvall said the Independence Initiative was approved by the university Board of Trustees during the weekend with the endorsement of student leaders, the student newspaper and respondents to a student survey.

”We believe that this may be the first time that students have ever sponsored such a fund-raising initiative,” said M. Kasim Reed, Howard’s undergraduate trustee, who developed the idea. He said ”it sets an example for the nation’s other colleges and universities to follow.”

Beginning this fall, in addition to tuition – $5,825 for 1991-92 – and other fees, all Howard students will pay a $15 surcharge each semester. (Source)

About Richard C. Wilson