FRIDAY • NOVEMBER 6, 2015
CHICAGOMAROON.COM
THE INDEPENDENT STUDENT NEWSPAPER OF THE UNIVERSITY OF CHICAGO SINCE 1892
ISSUE 11 • VOLUME 127
University endowment reaches alltime high of $7.58 billion Emily Kramer Maroon Contributor
A crowd surrounds Chicago police on November 2 as they arrest UChicago student Spencer McAvoy at a protest at the Chicago Board of Trade. COURTESY OF MORAL MONDAYS ILLINOIS FACEBOOK
Four students arrested at downtown protest Katherine Vega Senior News Reporter Forty-two protesters, including four University of Chicago students and two alumni, were arrested at a protest at the Chicago Board of Trade on Monday. The protest, organized by a statewide coalition called Fair Economy Illinois (FEI), called for higher taxes on the rich to balance
Illinois’s budget. Hundreds of protestors representing organizations across Chicago and Illinois participated. Carrying signs that read “Students’ needs, not Corporate Greed” and “Fund Education, Tax Big Corporations,” the protesters marched from the Thompson Center to the Chicago Board of Trade, where they blocked entrances and staged a die-in.
Southside Solidarity Network (SSN) and UChicago Climate Action Network (UCAN) were two of the organizations that sent protesters. Both groups are part of IIRON, an Illinois organization that promotes economic equality and social justice. IIRON is a member organization of FEI. According to second-year Anna Wood, an organizer ARREST continued on page 3
Doug Hallward-Driemeier addresses gay marriage decision at Law School Pete Grieve Maroon Contributor One of the two attorneys who successfully argued that state bans on same-sex marriages were unconstitutional in Obergefell v. Hodges spoke at the Law School on Wednesday. Doug Hallward-Driemeier began his discussion by saying the Obergefell v. Hodges case rested on two questions: 1) are states required to license marriages between two people of the same sex? and 2) are states required to recognize marriages of same-sex couples licensed out-of-state? Mary Bonauto argued Question 1 for the plain-
Hallward-Driemeier spoke about his role in the landmark Supreme Court case Obergefell v. Hodge on November 4.
LAWYER continued on page 3
COURTESY OF THE NEW YORK TIMES
The University of Chicago’s endowment is at an alltime high of $7.58 billion as of June 30, 2015, according to a press release from the University News Office last week. The portfolio’s return for the fiscal year, which ended on June 30, was 4.8 percent. This exceeded the 3.1 percent previously used as the portfolio’s benchmark return. During the financial crisis of 2008 and 2009, the University of Chicago’s endowments decreased in value by approximately 21.5 percent. Since then, average investment returns of 11.4 percent have contributed over $4 billion to the endowment. In the past two decades,
the University of Chicago’s endowment has grown more than sixfold, increasing from $1.1 billion to its current $7.58 billion. The University of Chicago’s investment gain for the past year is higher than the 3.6 percent that Wilshire Trust Universe Comparison Service reported to be the median return for endowments above $500 million. However, the University’s return is lower than the investment gains of some of its self-declared peer institutions, such as Brown University, the lowest-performing Ivy League Institution, which had a return of 5.7 percent. The highest performing institutions include Princeton and Yale, whose investment gains are 12.7 percent and 11.5 percent respectively. Every year, a portion of
the endowment is appropriated to the University budget. Trustees of the University may approve a certain amount of spending that falls within the range of 4.5 to 5.5 percent of a certain average market value over a three-year period. “We view investments as an important part of an integrated approach to the University’s fiscal health,” Vice President and Chief Investment Officer Mark Schmid said in the University’s press release. “Working closely with the Board of Trustees’ Investment Committee and Financial Planning Committee, as well as University leadership, we continue to believe this integrated approach will best support the University’s mission in all types of market conditions on a long-term basis.”
Economist ranks UChicago below peer institutions for “best value” Katherine Vega Senior News Reporter The Economist has ranked the University of Chicago 1151st out of 1275 institutions for “best value” on its first-ever list of college rankings, released October 29. Rather than using metrics such as acceptance and retention rates, the study operated on a “simple, if debatable premise,” according to The Economist—that the true economic value of a school lies in whether or not its students could have had higher earnings had they attended a different school. The list measures best value by taking the average amount of money a student earns 10 years after graduation and then subtracting how much money the students would be expected to earn at a comparable school. In other words, the list subtracts “expected earnings” from the actual earnings of graduates. The study controlled for schools with
similar racial breakdowns, religious affiliations, sex ratios, average SAT scores, and a number of other variables. The Economist’s methodology used a governmentcompiled dataset from the Department of Education’s college scorecard that matched a student’s college loan application with his or her student tax returns 10 years later. In a blog post explaining the ranking methodology, The Economist noted a study by economists Stacy Dale and Alan Krueger that found that students who were accepted to, but did not attend, top colleges made as much money as people who did attend the schools. Thus, the “best value” concept stems from the idea that students who are smart and hardworking might do well regardless of the school they attended. According to a 2012 study by the Chronicle of Higher Education, the University has eight peer institutions
that also consider UChicago a peer. Of these eight, University of Pennsylvania ranked 15th, Cornell ranked 203rd, Northwestern ranked 696th, Washington University in St. Louis ranked 988th, Johns Hopkins ranked 1029th, Brown ranked 1125th, California Institute of Technology ranked 1260th, and Yale ranked 1270th. The Economist did note potential shortcomings of the study, including the fact that the government information only included students applying for federal loans, which is a small subset of students in college. In addition, the earnings are taken from 10 years after graduation, meaning that a large percentage of future high-earners could have been in the middle of graduate school. Finally, the numbers used are for the entering class of 2001, meaning the information might be outdated or the year might be an outlier for high earners.
IN VIEWPOINTS
IN ARTS
IN SPORTS
EDITORIAL: Independent Review Committee in review » Page 4
Plenty to celebrate in Chicago Sinfonietta’s Día de los Muertos concert » Page 8
FOOTBALL: Beltrano carries “Good Works” off the gridiron
CROSSWORD: Advice columns » Page 9
M. SOCCER: Postseason dreams on the line this weekend »Backpage
BLACKLIGHT: Shining a blacklight on society » Page 5
» Backpage