Among the Trustees’ core responsibilities is to raise funds in support of Athens College and to manage, invest, and protect the assets of the endowment, which was established in 1928.
The endowment is comprised of funds that have been given to the Trustees over the years to be held in perpetuity. The income from these funds is spent on an annual basis as the original donor directed, for example for scholarship, faculty support, and academic enhancement. As of December 30, 2023, the market value of the endowment stood at $17 Million. The average annual return over the last 5 years was 8.2% net of fees.
Endowment Spending
The amount to be spent from endowed funds is calculated on an annual basis according to the spending formula set by the Trustees.
Currently, the spending formula is equal to 4.5% of the twenty-quarter moving average of a particular fund’s quarter-end market value. For example, if in a given year the average value of the fund is $1,000,000, $45,000 will be available to be spent. Income and capital appreciation above this amount are retained and reinvested within the endowment allowing the fund to grow. Over time this policy helps to maintain the buying power of the funds. In determining the spending formula for endowed funds the Trustees are legally obligated to consider a number of factors including general economic conditions, the possible effect of inflation or deflation, and the expected total return from income and appreciation of the investments.
Investment of the Endowment
The endowed funds held by The Trustees of Athens College in Greece are currently managed by the Capital Group, founded in 1931 and one of the world’s largest investment firms with $2.5 trillion in accounts.
The endowed funds held by the Trustees are overseen by the Finance and Audit Committee of the Board which meets regularly to review the assets and investments. Capital Group works closely with the Committee and recommends investments in line with its goals and long-term strategy as well as the Trustees’ investment policy.
How Endowments are Protected
Endowed funds in the United States are subject to various federal and state laws as well as accounting rules, which are designed to protect gifts designated for endowment and regulate the investment of and spending from these funds.
Endowments are overseen by the attorney general of the state in which they are located, in our case New York. Individual endowed funds are documented by a binding contract between the donor and the Trustees. The endowed funds held by the Trustees are audited on an annual basis by an external independent accounting firm.
Further information regarding the Trustees of Athens College in Greece endowment is available upon request.
