Management

The? e cf endowments in academic finances of higher education is examined. Two-effects of the d'ecline cf endowment funding, their failure to keep pace with inflation and'Ipss of income for innoatilie programs, re cited. The historical role of endowments in iibtitutional finances is reviewed. Present concepts'of etdowment manageient are dl,scussed, including the "total return " inlrestment aPproach afiiipal*.gement objectives in the areas of spending policy, portfolio ditersification, and endowment gromth. The possible effectS of ethical issues'on endowment funds is illustrated by the South African-releifed investments. recisions to divest all South African Stocps cause a number of prcblems-for institutions, net only possible-JCloss of revenue due to divestiture costs and-lack of sound investment possibilitiesJut also possible loss of potential contributions from business. A current attitude among.college and university'investors, is that their presence in South Africa can contribute tq changing current conditions. It is concluded-that the decline"of endowments&apos