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50th Anniversary
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T H E I N D E P E N D E N T D A I LY AT D U K E U N I V E R S I T Y
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XXXXXDAY, MONDAY, OCTOBER MMMM 7, XX,2013 2013
ONE ONE HUNDRED HUNDRED AND AND EIGHTH NINTHYEAR, YEAR,ISSUE ISSUEXXX 30
Trustees adopt endowment policy changes
DukeOpen aims not fully met
by Danielle Muoio THE CHRONICLE
The Board of Trustees made several endowment policy changes at their meeting this weekend. The changes include an expansion to the Advisory Committee on Investment Responsibility, the creation of a social choice fund and a more streamlined process to review investment-related concerns. These changes were presented by President Richard Brodhead, who held several meetings with DukeOpen—a student coalition that aims to increase the transparency of the Duke Endowment. Although DukeOpen’s proposal for endowment transparency included the creation of a social choice fund, their recommendation for hard-copy, time-delayed disclosure of the endowment’s direct investments was not presented at the meeting. DukeOpen interrupted the meeting Friday to present this proposal, which would allow members of the Duke community to view paper records of the endowment’s direct holdings in an office setting, six months after investments have been made. “We learned that over the past year the Duke Endowment return was [13.5 percent] because of the shrewdness of our investment managers,” Brodhead said. “If we make that public, we lose all of that [advantage].” The ACIR, which oversees and advises on issues of social responsibility related to endowment assets, was previously composed of three faculty members, two students, four administrators and one alumnus. The ACIR will now add one trustee, one faculty member, one undergraduate student and one graduate student. The Board also voted to eliminate the President’s Special Committee on Investment Responsibility, making the ACIR the chief See BOT, page 12
by Emma Baccellieri THE CHRONICLE
30, endowment gains funded approximately 16 percent of the University’s $2.2 billion in operating revenues, according to draft statements provided by administrators. The endowment is professionally managed by DUMAC, an investment group controlled by the University. “Duke is known for its many great assets, and DUMAC is one of those assets,” said Board
Although the Board of Trustees made several changes to endowment policies this weekend, members of DukeOpen were dissatisfied that endowment transparency was not presented at the meeting. Among the reforms are the establishment of a social choice fund, modifications to the Advisory Committee on Investment Responsibility and a more direct manner of reviewing concerns related to investments. DukeOpen’s request for limited disclosure of the endowment’s investments—an arrangement in which members of the Duke community would be able to view timedelayed, hard-copies of direct holdings in an office setting—was not presented to the Board. DukeOpen interrupted the Board meeting Friday in an attempt to present their full proposal. “I’ve given them an answer, as they well know, which is in accord with the majority of what they asked,” Brodhead said before presenting to the Board. “The part that I did not agree to represents a fairly technical feature. The notion that if I were to agree to that, suddenly everything would be transparent—and that if I didn’t, everything is opaque—is really not the nature of this.” David Rubenstein, Trinity ’70 and chair of the Board, analogized endowment transparency to everyone in the University having access to students’ grades. While it is important for select administrators and professors to view students’ academic records, not everyone should be given access to that information, he said.
See ENDOWMENT, page 12
See DUKEOPEN, page 4
CHRIS DIECKHAUS/THE CHRONICLE
Arthur Holland, a DUPD police officer, instructs DukeOpen members to move away from the door leading to the Board of Trustees meeting.
Duke posts 13.5 percent return on endowment by Yeshwanth Kandimalla THE CHRONICLE
The University reported a 13.5 percent return on its endowment investments for fiscal year 2013, raising the endowment’s value to $6 billion from $5.6 billion. The return was significantly higher than fiscal year 2012, when investments only returned 1 percent and the value actually declined due to withdrawals for the operating budget. For fiscal year 2013, which ends June