Planning for Targeted Endowment Growth
8 min Read
Chapman modeled the outcome of annually investing a portion of its operating income in to a fund used to cover major repair and renewal, as well as a portion to increase the size of its endowment. After implementation, this strategy has allowed Chapman to grow the market value of its endowment from $134 million to $392 million over the last decade as of FY 2018. Harold W.Hewitt Jr., Chief Operating Offi¬cer explains, “We have been able to take our endowment from roughly eight percent true, or restricted and inaccessible, and we have flipped that ratio to about 50 percent liquid.” The University’s liquidity is significant for credit evaluations and allows for a readily accessible portfolio of cash, made possible through analysis and optimization in Synario™.