(05-17-2017 05:47 PM)Captain Bearcat Wrote:  

(05-17-2017 04:29 PM)SlyFox Wrote:  Part of the big jump was us choosing to move cash in the bank into the endowment. For years we chose to keep most of it liquid so we had more flexibility in how we spent the money. But now that we are nearly complete on a $1B renovation of campus over the past couple of years, we are moving more of the funds to longterm investments through endowment. It was the natural progression.

They kept $927 million in a savings account? The CFO should be fired on the spot.

Endowments earn 4% right now. A big part of endowments are typically in treasury bills or low-risk stocks, which are pretty liquid anyways. In a worst-case scenario if they ran out of cash and couldn't sell the treasuries, they could easily get a 1-year loan against the endowment.

If they really kept it in a bank, they gave up nearly $40 million in extra revenue for no reason.

There is no way they kept $927 million in the bank account. They are smart business people who would invest such a large amount to make it larger. I'm poor and I know that.