Wednesday, December 17, 2008
Brodhead to faculty & staff: “Duke’s endowment … has declined”
From The Chronicle tonight - - -
Duke's endowment has lost 19 percent of its value as of early December, despite assurances from University officials in recent weeks that Duke's financial situation is secure.
President Richard Brodhead attributed the drop to the ongoing recession and financial turmoil in an e-mail sent to faculty and staff early Wednesday evening and obtained by The Chronicle.
According to the Web site of the Duke University Management Company, which manages Duke's endowment, the value of the endowment June 30 was $6.1 billion. That would put the current value at approximately $4.9 billion.
"Duke is not immune from the powerful forces that are buffeting the economy. Duke's endowment, like virtually every other investment fund, has declined over the past few months," Brodhead wrote in the e-mail. "In addition, research universities such as Duke are also uncertain about the future of other funding sources, including federal research support."
Endowment spending typically comprises 15 percent of Duke's annual budget. Spending policies call for a payout of 5.5 percent of the endowment's three-year average value, and these policies are intentionally structured to compensate for difficult economic times.
In light of the endowment losses, senior administrators will begin drafting plans and recommendations to adjust to lower revenues, Brodhead wrote in the e-mail.
SC: There are still some things which Brodhead and Steel cannot googlewash.If I had good reason to believe(as everyone else does) that my contributions to Duke were going to fight(but,in the end ,inevitably pay) for tens of millions in litigation,I would not contribute one further cent to the Duke coffers until the arrogant poltroons directly culpable for this legal fiasco heist their hind ends off the BOT and,preferably, beyond the purview of their fellow men.