Endowment quadruples in 12 years

by Skip Anderson

Vanderbilt University's endowment -- which more than quadrupled over the past 12 years -- can be attributed to careful planning, a redefined internal reporting structure and good timing, said the institution's chief investment officer.

"It's easier for large endowments [of $1 billion or more] to perform well than it is for medium-sized and small ones," said William T. Spitz, vice chancellor for investments and treasurer. "You can afford to be more aggressive, and it's easier to work with the managers of the best-performing funds. Believe it or not, getting them to take your money is highly competitive business."

Spitz said recent changes in his office's reporting procedure to the University's Investment Committee enables his office to "pull the trigger very quickly" on investing in the most desirable funds.

"It's our competitive advantage," said Spitz. "It might take other institutions six weeks to authorize the deal, which makes working with us even more attractive to fund managers."

Spitz said the growth of the endowment during the '90s was unprecedented, but the performance last fiscal year was exceptional.

"That kind of performance is a once-in-a-lifetime deal," he said.

Growth of the endowment

2000 $2.3 billion

1999 $1.8 billion

1998 $1.5 billion

1997 $1.3 billion

1996 $1.1 billion

1995 $953 million

1994 $838 million

1993 $801 million

1992 $669 million

1991 $612 million

1990 $604 million

1989 $557 million

Source: William T. Spitz, vice chancellor for investments and treasurer