FAQs
The college does not directly invest in stocks and bonds (or other financial instruments). Instead, the endowment is invested through investment managers, each with its own specific strategy and role in the portfolio. This allows the investment office to build a portfolio of talented investors with specific expertise and talent in their respective fields. For example, we invest in funds that have expertise in a particular sector (e.g. biotechnology, renewable energy) or in a particular geography (e.g. U.S. or emerging markets), or in a particular market (public equity, venture capital, credit, etc.) On average, the portfolio has approximately 50 to 60 active manager relationships at any given time.
The endowment’s mission is to contribute financial support to both the present and future needs of the College and its students, faculty, and staff. We want to ensure that the benefits of the endowment are fairly distributed across multiple generations. Said differently, we want the wonders of Williams experienced today to be able to be experienced in 100 years. This means we must balance the current spending needs with the preservation and growth of the endowment over the long-term.
There are two main reasons why we can’t take more from the endowment in bad years. First, given the endowment’s focus on intergenerational equity, supporting both present and future needs of the College, it is critical to balance the current spending needs with the preservation and growth of the endowment over the long-term. If we take more from the endowment in bad years, it could equate to having less in the endowment in future years and less resources for future generations. Second, the Williams endowment is made up of more than 1,800 individual funds designated for various uses across the institution. Many of the individual funds are restricted, meaning they support a specific objective set by a donor and are designated to aid that activity perpetually. So, even if more was taken from the endowment in a bad year, it might not be able to go to the specific area of need in a specific year.
The Annual Reports contain detailed information on the endowment’s performance. These reports are published each December when final fiscal year end (June 30th) results are available.
Given the diversified nature of the investment strategies in the endowment, there are a range of external investment partners (“managers”) that we use to build the portfolio.
Significant work is dedicated to identifying, researching, and accessing managers who are aligned with Williams’ financial and fiduciary interests. When selected well, these managers have the potential to add investment return for Williams—this is critical to support the long-term mission. Not disclosing the details of these partnerships (such as manager names or underlying holdings) reflects industry standards and is therefore the expectation of most high-performing managers in the field. Making that information public would very likely erode Williams’ ability to build strong relationships and access the managers we need to continue to build and maintain the portfolio. This practice is embraced by most endowments and is often legally binding.
Beginning in 2021, the decision was made that the endowment would not make new investments in funds dedicated to oil and gas extraction. Any existing investments are in the process of being phased out over time.
You can learn more about the Advisory Committee on Shareholder Responsibility here.
The Investment Office’s location is no accident. We are close enough to the college to stay in constant contact through committees, recruiting, and other means, but we’re also in the heart of an active investment community. Many of our investment managers are located in, or travel through Boston, making it easier to have regular touchpoints and updates from our managers. Many of our peers also have their Investment Offices in Boston (Dartmouth, Smith, Amherst, Mount Holyoke, Harvard, MIT, Tufts, and Wellesley are all examples), and this makes for a more vibrant investment community.
For Investment Managers, please see our team staffing page. We are always looking for differentiated strategies for the portfolio and welcome your outreach.
For the Williams community, please see the community engagement section of our website, or reach out directly to a member of our team. Our contact information can be found on our team page. We welcome your questions and appreciate the opportunity to engage further with you about the endowment.