Last Wednesday, UNC administrators opened the dialogue with students by presenting and answering questions at the long-awaited Endowment 101 forum. They should be commended for responding to questions, but this dialogue should continue.
Even though UNC administrators stood firm behind the way the endowment is currently invested, they should work with students to make the investment process more transparent and responsive to concerns from students and donors.
While it’s true that UNC Management Company doesn’t pick which particular stocks and bonds to invest in for most of the endowment, it does control some bond selection.
The University can maintain a commitment to getting the highest return on its investments while taking steps to reflect a commitment to sustainability.
A good start would be to establish official channels for further student input on endowment transparency.
Duke University’s Advisory Committee on Investment Responsibility provides a good model.
The committee investigates concerns from donors, students, faculty and staff about ethical practices in investing the endowment. If the committee judges the concern important enough, it presents that concern to the school’s president for consideration by the Board of Trustees.
UNC administrators and students should create a similar committee as a permanent place for dialogue on endowment issues.
But for this to happen, administrators must continue to meet with students and make information about the endowment more accessible.
