According to Wesleyan Student Assembly (WSA) Endowment Committee Chair Andrew Huynh ‘11, the WSA’s endowment rose by 6.00 percent in the third quarter to a total balance of $223,588. These gains offset the 3.07 percent loss that the endowment saw in the second quarter, which was principally due to a 14.58 percent drop in the value of the endowment’s shares in the Winslow Green Fund.
“[The endowment’s increase] is great, but it’s also a reflection of the fact that the stock market has seen a considerable rally in the last couple of months,” Huynh said. “So, it’s really not that surprising that the returns are great.”
In the third quarter, all four investments of the endowment portfolio experienced growth. Socially responsible fund PIMCO rose by 3.93 percent, the Winslow Green Growth fund rose by 14.42 percent, the Wesleyan Endowment-tied investment rose by 6.75 percent, and MiddConn share certificated rose by .44 percent.
Third quarter returns totaled $12,095. Additionally, the WSA recently added $10,000 to the endowment, which was derived from the $68,155 Student Budget Committee (SBC) surplus generated during the 2009-2010 academic year.
Although the WSA Endowment Committee has not yet determined where they will be investing the additional funds, both Huynh and WSA President Micah Feiring ’11 emphasize that they want to avoid investing in volatile funds.
“It’s my preference to diversify our portfolio more, which includes possibly reducing our holdings in the Winslow Green Growth Fund, just because it is a fairly volatile fund,” Huynh said. “I don’t want to completely divest from the Winslow Fund, but I do think that we can both expand our reach and achieve more consistent returns by investing in additional mutual funds.”
Feiring, who sits on the WSA Endowment Committee with Huynh, said that the committee is focused on finding secure investments.
“The Endowment Committee is probably not going to be looking for risky investments with high returns,” he said.
The WSA endowment was created with the intention of eventually eliminating the $270 student activities fee.
Huynh said that he will continue to look into other potential investment opportunities in the future.
“I think this quarter’s numbers are great. I don’t want to rest upon our laurels here and think that just because this one quarter is doing well, that we don’t continuously look into how were investing,” Huynh said.