Innermost Parts

Dear Alex,

I am writing in response to your email concerning the investment of the University’s endowment.  There are good reasons why the University does not disclose the details of its investments.  Disclosure of holdings rarely, if ever, improves returns, and in most cases, disclosure hurts returns.  Indeed, many of the University’s investment managers not only do not disclose holdings to us, they prohibit us from disclosing information about the funds that we are in, including the fact that we are investors in their funds.  There are groups and individuals, who in no way have the best interest of the University at heart, who seek transparency for the advancement of their own interests in ways that could be contrary to the University’s interests.

In response to your specific concern about how the community is to know if the University invests in a socially responsible manner, you should know that the Investment Committee of the Board of Trustees reports annually to the full Board regarding investment policy and social responsibility.  As a responsible investor, the University follows guidelines adopted by the Board of Trustees almost thirty-five years ago, in April 1973.  Vice President Deborah Kuenstner, the Chief Investment Officer, is working on putting together a website that will include an annual commentary similar to the one most recently reported to the Board of Trustees at its October meeting, which will include information on the investment policy and social responsibility.  

If you wish more information, Vice President Kuenstner would be pleased to meet with you to provide a broad overview of the strategy.  If you wish to schedule an appointment with her, she can be reached by email at <kuenstne@brandeis.edu>.  She can also provide you with a copy of the April 1973 guidelines.

You have my good wishes for a successful spring semester.

Sincerely,

Jehuda Reinharz