After a Harvard Management Company official said that the natural resources portfolio is "pausing" investments in fossil fuels, the University maintained that the remarks did not represent a change in investment strategy.
Faust said the renown of American universities is “contingent” on continued federal support during a panel discussion with university presidents in the nation’s capital.
As Harvard cuts the size of its internal workforce and begins to outsource its funds to more expensive external managers, Harvard Management Company will begin to more closely resemble investment offices at Yale and other peer institutions.
Harvard Management Company’s head of natural resources Colin Butterfield said that Harvard is “pausing” investments in some fossil fuels.
As FAS struggles with budget constraints, SEAS is continuing with “measured growth” and plans to partner with outside firms to generate additional revenue.
As Harvard seeks to cope with disappointing endowment returns from last fiscal year, some of the University's twelve constituent schools will be harder hit than others.
Students have launched a new effort urging Harvard to divest—this time taking aim at the University’s holdings in private prison stocks.
The cost of attending Harvard College will be $65,609 in the 2017-2018 academic year, representing a 4.10 percent increase from last year.
"The sense was that the fees that would be charged by external managers in relationship to the insight and success of external managers was worth undertaking,” Faust said.
Experts say that if the real estate team continues to do business with Harvard Management Company as an external management unit, it could earn salaries well above what members of the team drew in at HMC for doing mostly the same job.
Harvard’s endowment grew slower than was average for university endowments in fiscal year 2016, according to a recent report from the National Association of College and Business Officers.