A lesson: Endowment fund of Harvard and Yale University

How does the way in which endowment offices are organized contribute to their returns? 

 First, the top-performing endowments have active investment committees, typically drawn from the ranks of alumni. These bodies typically see their role not as micro-managing the decisions of the investment staff, but rather in setting broad policy and serving as an informed sounding board. The contrast with public pension funds, where the bulk of the staff is drawn from rankand-file employees, is particularly stark.

Second, the staff of successful academic endowments typically has considerable experience and has often worked together for many years.

Finally, the staff of successful university and college endowments has an academic orientation, which leads to a process of periodic self-evaluation. Many of these funds occasionally stop to consider the processes that led them to make investments that proved particularly successful or problematic. They often engage in an active dialog with their peers.



Oh,, great!!Take many lesson inshaAllah:)