Asserts that while the Nasdaq bubble did burst, the new economy is real and that failure to understand the rules of the digital economy can lead to substandard investment portfolio performance. Offers guidelines for higher education institutional investors. (EV)

Describes how Saint Bonaventure University is using a ratio analysis based on a composite financial index to transform itself from an institution with adequate financial resources into a financially vibrant institution. (EV)

Colleges and universities are facing difficult choices as insurance companies cancel coverage or demand premium increases of up to 800 percent. The current crisis is blamed on the way the industry has been managed. Financial managers, rather than underwriters, took over the industry. (MLW)

Why alternative investments? In a word: performance. Many higher education endowment and foundation managers are making increasing commitments to alternative investments, or AAs, in order to obtain higher returns and broader diversification for their investment portfolios than public securities instruments can usually provide. Learn how to handle…

Measured the impact of economic cycles on independent colleges and universities, using a national tuition discounting survey. Found that economic cycles and pricing pressures have measurable and predictable effects on independent higher education. (EV)

The conventional wisdom suggests that colleges and universities that are highly dependent on endowment income should be risk-averse because a significant decrease in the value of the fund could potentially prove fatal. This article suggests that a conservative strategy may actually be self-defeating to institutions that rely heavily on endowment…

Discusses the costs of online courses, including technology-specific, support personnel, faculty development, hidden, development, and teaching costs. Describes research at Marshall University into these costs and a resulting Web site that allows users to answer questions and receive a spreadsheet estimate of online course costs for their…

Discusses the Sarbanes-Oxley Act of 2002, a formal response to major corporate and accounting scandals, exploring its implications for higher education and promoting it as an opportunity both to reassess best practices for audit committees and executives and to refresh the ongoing dialogue with external auditors. (EV)

A series of articles provides coverage of experts discussing current endowment issues and implications for the future. The articles are: "The Spending Crisis: Spending Rules in Light of the Prolonged Bear Market,""A Principle Pair: Investment Insights from Yale's David Swensen,""Size Matters: Perspectives on the 2002…

Discusses results of a survey of independent institutions concerning tuition discounting. Results show that tuition discounting is increasing and appears to be pervasive part of enrollment management plans, despite the continuing debate over whether or not it is a wise strategy for attracting the best mix of students. (EV)

Describes the 20/20 Initiative of the National Association of College and University Business Officers and the 4 regional associations, a collaborative planning and change effort to help the associations serve the needs of higher education administrators and improve their services. Most member recommendations involved conducting targeted member…

Asserts that colleges and universities should apply the same analytical rigor to physical assets as they do financial assets. Presents a management tool, the Return on Physical Assets model, to help guide physical asset allocation decisions. (EV)

Describes how Harper Community College in Illinois, partnering with its financial advisor Kane, McKenna Capital, Inc., worked to receive the best bond rating available from Moody's Investors Service, thereby saving taxpayers three million dollars. (EV)

Analyzes data from the 1999 National Association of College and University Business Officers Endowment Study of 503 institutions. Finds that 80 percent of endowment wealth was held by 129 institutions; that the average institution withdrew 5.4 percent from its endowment; and that 86.5 percent of assets were invested in marketable securities. Lists…

Identifies various roles of a college or university's endowment fund, such as serving as a rainy day fund, funding one-time capital requirements, and enhancing program quality. Considers implications of various roles for asset allocation and endowment spending. (DB)