From MarketWatch: Harvard University’s endowment could shrink by a dramatic 40% compared to what it would have been due to Trump administration policies. That’s according to the modelling done by a Dutch software company, Ortec Finance, which look at three major policies: the loss of research funding, the change in tax status and the loss of revenue from international students. “The endowments now face a two-sided front of needing to prioritize both liquidity and return. On one hand, endowments need liquidity to pay out larger support to the universities on a yearly basis. On the other hand, the endowments will also need to prioritize higher returns to meet higher payout rates,” a report finds.
...The Ortec modeling considers Harvard’s investment policy of last year, which was an 80%/20% split between illiquid and liquid assets. It also assumed a 5.25% payout from the endowment to the university, which is in line with recent averages...
Full story at https://www.marketwatch.com/story/harvards-endowment-could-shrink-as-much-as-40-from-white-house-policies-analysis-finds-d8e597da.
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