Finance/Accounting Please Help Endowment Analysis There is no minimum or maximum

Question

Finance/Accounting Please Help

Endowment Analysis

There is no minimum or maximum length answer required but be sure to provide all of the requested elements for each of the four parts within the allotted time Given your expertise in investment management, GIT's student newspaper, the Polytechnic ("Poly"), has asked you to analyze and make recommendations regarding the university's endowment assets. Below is the actual statement of investments from the 2017 GITfinancial statements. A definition of each asset category is included at the end of this examination. 5.Investments The Institute's investments are overseen by the Investment Committee of the Board of Trustees The fair value and cost of investments at June 30 is as follows 2017 2016 Fair Value Cost Fair Value Cost Cash and cash equivalents Fixed income Domestic equity Global equity Foreign equity Real assets Marketable alternatives S 22,598 $ 22,598$ 36,338 S 69,695 126,327 53,211 126,516 4,287 68,742 124,404 38,028 99,206 4,115 82,368 80,253 64,429 70,735 3,186 36,338 79,445 75,983 53,350 61,625 2,873 Fixed income Multi strategy Equity 33,098 9,634 16,677 25,764 8.368 14,737 28,363 28,479 13,393 18,864 16,392 15,179 Private investments Fixed income Real assets Equity 6,518 57,606 93,804 619,971 10,179 104,427 64,921 585,489 7,623 65,438 99.346 579,951 10,179 110,382 69,730 550,340 Subtotal

Explanation / Answer

The Endowment fund is basically treated as financial assets. An Endowment is a fund which by nature is perpetual which only pay out a small portion which may be equal to somewhere around 4 to 5 percent per year. The endowment fund get utilised in campus's operations and various other programs and serve dual goals to grow the principal and generates income.

If we compare the endowment of GIT with Harward, the harward in 2016 is having $36 Billion Endowment fund which is quite high as compare to GIT.

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