In recent years, managers of university endowments have come under increased scrutiny about how their money is invested. There’s been a significant rise in fossil fuel divestment campaigns, calls to integrate environmental, social and governance (ESG) into endowment investment decision making, and a growing impetus on making investment delivering positive social impact.
University finance directors are faced with the challenge of ensuring their financial assets are invested to meet their current and long-term costs as well as ensuring that they are in alignment with the universities mission and values. They also have to respond to the concerns of stakeholders and students in their investment practices.
Impact investments can help managers of university endowments better align the financial asset of the university with its long-term institutional objectives. Many impact investments offer positive risk-adjusted financial returns as lower correlation to listed public market investments.
Impact investments can also help managers respond to student and other stakeholders’ calls for more responsible investment practices.
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To learn more about how universities can engage with impact investment, please get in touch.