Harvard breaks new ground
In an attempt to attract new dollars to the already enormous Harvard endowment (the largest of all university endowments), Harvard has broken new ground according to a New York Times story (registration required) that details how it now allows trusts to be invested in a new fund that mirrors its high-performing endowment:
Harvard has been marketing the new strategy in letters to existing donors and in its alumni e-mail newsletter. A large ad in Harvard's alumni magazine proclaims: "New Investment Opportunity. Qualifying charitable trusts at Harvard can now be invested in Harvard's endowment." Since the beginning of the year, about $225 million in trust assets have been invested in this new endowment fund, says David Scudder, vice president of trusts at Harvard Management Co., which oversees the endowment and is a wholly owned subsidiary of Harvard. Harvard is offering the new fund in part because of requests from alumni who have long wanted to invest in the endowment, Mr. Scudder adds.