2008 Woodie Awards
MC and the Economic Downturn
Current Endowment Stands at $44 Million
Joseph H. Smith
Issue date: 10/1/08 Section: News
It is impossible today for a person to pick up a copy of the newspaper or turn on the television or radio and not be made painfully aware on the dire situation of our nation's economy. Bearing all of this awful news in mind, the next question that inevitably arises is how does this affect me, and to the more perceptive, how does this effect MC?
The economy, obviously, plays a large role in the cost of tuition and the state of the college's endowment. In order to gain a better perspective on the economic situation, Mr. Thomas Ryan, the Vice President for Finance, recently granted an interview to The Quadrangle.
A subject of considerable financial interest is the state of the College's endowment. The endowment is crucial to the continuing mission of the College; it provides the funds necessary for the College to continue functioning. The endowment currently stands around $44 million, and this is a fairly small figure when compared to the endowments of other colleges. Mr. Ryan explained that naturally it is better for the College to have a large endowment because this allows the College to control a greater number of assets. It also allows the College to obtain better rates when it wants to borrow money for capital projects, such as the Broadway Garage and East Hill II. The College is doing very well, financially speaking. It is operating in the "black," that is without a deficit.
Because of the recent unfavorable market activity, the endowment has, in theory, declined by about 6%. But, the College has not lost any money because money would only be lost if the College sold its stocks. There are no plans to do this because the College would, in reality, lose money. It is bad business and foolish to sell stocks when they are at a low point, as they are now. The College's investments are still faring better than comparable indices. Funds will be moved into fixed incomes and alternatives in order to combat the unfavorable market conditions currently present.
The economy, obviously, plays a large role in the cost of tuition and the state of the college's endowment. In order to gain a better perspective on the economic situation, Mr. Thomas Ryan, the Vice President for Finance, recently granted an interview to The Quadrangle.
A subject of considerable financial interest is the state of the College's endowment. The endowment is crucial to the continuing mission of the College; it provides the funds necessary for the College to continue functioning. The endowment currently stands around $44 million, and this is a fairly small figure when compared to the endowments of other colleges. Mr. Ryan explained that naturally it is better for the College to have a large endowment because this allows the College to control a greater number of assets. It also allows the College to obtain better rates when it wants to borrow money for capital projects, such as the Broadway Garage and East Hill II. The College is doing very well, financially speaking. It is operating in the "black," that is without a deficit.
Because of the recent unfavorable market activity, the endowment has, in theory, declined by about 6%. But, the College has not lost any money because money would only be lost if the College sold its stocks. There are no plans to do this because the College would, in reality, lose money. It is bad business and foolish to sell stocks when they are at a low point, as they are now. The College's investments are still faring better than comparable indices. Funds will be moved into fixed incomes and alternatives in order to combat the unfavorable market conditions currently present.