Harvard Sees Crimson in Endowment Losses
Tuesday, December 2nd, 2008In today’s sweeping economic plague, there’s nowhere to hide.
Even the Ivy Leagues are wilting under the tough market climate.
Harvard University, the richest school in the nation, is anticipating a 30% loss in their endowment this year. At $36.9 billion, Harvard’s endowment fund which normally gains excellent returns from diverse investments into a variety of markets; pays for over one third of the University’s operating expenses. A staggering cut of over $11 billion means serious change is in the air of Harvard’s quad.
The University President, Drew Faust, said the school is figuring out ways to tighten up on spending and examine compensation costs (which make up almost half of their budget). A large scale expansion plan to build into Allston is also under review.
In a University-wide email, President Faust cautioned staff and students; “we must recognize that Harvard is not invulnerable to the seismic financial shocks in the larger world. Our own economic landscape has been significantly altered.”
Perhaps we can take a cue from the big dogs in the Ivy Leagues and reflect on ways that we can all be leaner and meaner in our own spending choices. As a sure fire time and money saver on college search and selection, CampusCompare is your economically sound option!
As one of our strongest and smartest institutions, do you think Harvard will bounce back?
