NEPC Partner Kristin Reynolds shared her perspective with Bloomberg on the growing financial pressures leading some colleges and universities to draw more heavily from their endowments. She discusses how consistently elevated spending rates can put an endowment’s long-term sustainability at risk. Read the full article on the Bloomberg website for more insights.
Like borrowing from a 401(k), the tactic can help short-term but carries big long-range risks.
. . .
“Once you get much over a spending rate of 7%, consistently, you are an at-risk endowment,” said Kristin Reynolds, who advises endowment administrators on their investment strategies at consulting firm NEPC. She was speaking generally, not about a specific college.
We use cookies to provide the services and features offered on our website, and to improve our user experience. By using this website you agree to our use of these cookies as explained in our Privacy Statement.
