2008 Woodie Awards
Investing under wraps
With calls to divest, board of trustees looks into investment procedures
Kate Augusto
Issue date: 4/11/07 Section: News
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As universities around the nation take steps to divest from companies that do business in Sudan, Northeastern's board of trustees announced this week they will look into endowment investment procedures in the next several months.
Forty-one universities, including Harvard and Boston universities, have announced they plan to divest from companies with ties to the Sudanese government, which is sponsoring genocide in the Darfur region.
Northeastern's endowment investments are not public, and Bill Rosenfeld from advocacy group Fidelity Out of Sudan said, "Many [universities] don't release information [on endowment investments] at all and it's relatively difficult to get inside."
In a statement released Monday, the board of trustees said Northeastern's investments will remain private, but the board will examine its policy on socially conscious investing in the near future.
"The board takes seriously both its fiduciary responsibilities and its responsibility to ensure that the endowment is invested responsibly in accordance with Northeastern's values," according to the statement. "To that end, the board's committee on Investments is currently reviewing the university's approach to investment. The Board expects to formulate a statement of principles, as well as policies and procedures, that will guide the university in its investment decisions."
Jack McCarthy, senior vice president of administration and finance, would not say whether Northeastern is working formally or informally to investigate the matter, or what is being done.
"We're working very hard, but our investment committee only meets periodically and our board meets less frequently and this isn't something that we can do at a Wednesday afternoon meeting," McCarthy said.
Rosenfeld said fund managers do not like the concept of divesting.
"It's their job to make as much money as they can for their investors and [divestment makes them] feel restricted and like there's less of a chance of meeting their goal," he said.
Forty-one universities, including Harvard and Boston universities, have announced they plan to divest from companies with ties to the Sudanese government, which is sponsoring genocide in the Darfur region.
Northeastern's endowment investments are not public, and Bill Rosenfeld from advocacy group Fidelity Out of Sudan said, "Many [universities] don't release information [on endowment investments] at all and it's relatively difficult to get inside."
In a statement released Monday, the board of trustees said Northeastern's investments will remain private, but the board will examine its policy on socially conscious investing in the near future.
"The board takes seriously both its fiduciary responsibilities and its responsibility to ensure that the endowment is invested responsibly in accordance with Northeastern's values," according to the statement. "To that end, the board's committee on Investments is currently reviewing the university's approach to investment. The Board expects to formulate a statement of principles, as well as policies and procedures, that will guide the university in its investment decisions."
Jack McCarthy, senior vice president of administration and finance, would not say whether Northeastern is working formally or informally to investigate the matter, or what is being done.
"We're working very hard, but our investment committee only meets periodically and our board meets less frequently and this isn't something that we can do at a Wednesday afternoon meeting," McCarthy said.
Rosenfeld said fund managers do not like the concept of divesting.
"It's their job to make as much money as they can for their investors and [divestment makes them] feel restricted and like there's less of a chance of meeting their goal," he said.
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