Sunday Mid-day Learning Opps

TIAA Corporate Showcase

Evaluating Spending Policies in a Low-Return Environment

  • Sunday, July 22
  • 02:00 PM - 03:15 PM
  • Long Beach Conv Center
  • Level 2
  • FIN

Speakers

Chris Carabell

Managing Director - Head of Business Development, Endowment and Philanthropic Services

TIAA

Charlotte, North Carolina

Dennis Johnson

Chief Investment Officer, Investment Management Group

TIAA

Charlotte, North Carolina

Bob Shea

Associate Vice President for Business, Finance and Technology

Elon University

Elon, North Carolina

Description

Managing an endowment for both intergenerational equity and short-term support presents inherent complexities. Recent financial markets have further complicated this tension, as many organizations consider the implications of lower portfolio growth in the future. While some have incorporated lower return expectations into their forecasts, many institutions have found it difficult to reduce and align their spending targets. According to recent National Association of College and University Business Officers (NACUBO) studies of endowment performance, most institutions have been increasing endowment spending despite lower long-term returns. Industry leaders will discuss ways your institution can address these challenges, including having a clearly defined and thoughtfully applied spending rule.

Learning Objectives

  • Consider the challenges of maintaining and adjusting your endowment spending policy.
  • Calibrate your endowment spending policy to the projected low-return environment.
  • Work with your board to grasp the implications of spending policy decisions and the endowment’s long-term viability.