A Survey of University Endowment Management Research

Journal of Investment Management, Third Quarter 2014

40 Pages Posted: 23 Jan 2013 Last revised: 12 Dec 2014

See all articles by Georg Cejnek

Georg Cejnek

ZZ Vermögensverwaltung

Richard Franz

Vienna University of Economics and Business

Otto Randl

WU Vienna University of Economics and Business

Neal Stoughton

Vienna University of Economics and Business; Vienna Graduate School of Finance (VGSF)

Multiple version iconThere are 2 versions of this paper

Date Written: November 25, 2013

Abstract

There is significant interest in how university endowments manage money and perform, and an emerging strand of finance research specializes in this growing area. The purpose of this paper is to survey and review the state-of-the-art in this field. We classify papers into four areas. (1) asset allocation, where we discuss the main theoretical framework and the relevant observations both across time and across types of endowment; (2) performance, where (risk-adjusted) performance is discussed and distinguished by type and size of endowment; (3) spending, where the relation to the classical views and theoretical literature is reviewed as well as what university endowments do in practice; (4) organization, where governance structure and the investment policy statement are discussed. We find that the modern framework for theoretical and empirical analysis can provide a very useful perspective for understanding the role of endowments. Nonetheless we highlight areas where more work remains to be done.

Keywords: university endowments, performance, asset allocation, spending policy

JEL Classification: G10, G11, G23

Suggested Citation

Cejnek, Georg and Franz, Richard and Randl, Otto and Stoughton, Neal M., A Survey of University Endowment Management Research (November 25, 2013). Journal of Investment Management, Third Quarter 2014 . Available at SSRN: https://ssrn.com/abstract=2205207 or http://dx.doi.org/10.2139/ssrn.2205207

Georg Cejnek

ZZ Vermögensverwaltung ( email )

Coburgbastei 4, Top5
Vienna, 1010
Austria
+43151818934 (Phone)

Richard Franz

Vienna University of Economics and Business ( email )

Welthandelsplatz 1
Vienna, 1020
Austria
+43 1 51818 545 (Phone)

Otto Randl (Contact Author)

WU Vienna University of Economics and Business ( email )

Welthandelsplatz 1
Vienna, 1020
Austria
+ 43 1 313 36 - 5076 (Phone)

Neal M. Stoughton

Vienna University of Economics and Business ( email )

Austria

Vienna Graduate School of Finance (VGSF) ( email )

Austria

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