Carol T. Christ, PhD, President of Smith College, Delivers Keynote Address
NEW YORK--(BUSINESS WIRE via COLLEGIATE PRESSWIRE)--Nov 10, 2003--The Bank of New York today announced that it held its annual ''Higher Education Finance & Investment Officers Forum'' at which representatives of educational institutions from throughout the United States gathered to discuss the key financial and investment issues presently confronting their sectors. More than 100 senior investment and financial officers, as well as trustees, attended the event, which was held in New York City on November 5th and 6th at the University Club and the Four Seasons Hotel.
Seminar guests were polled for their opinions on financial issues affecting their institutions such as tuition, funding and expenses. Nearly 80 percent of attendees feel that tuition will increase at a higher rate than the Consumer Price Index (CPI) for the foreseeable future. Over 60 percent feel that higher education funding will be reduced by their respective state governments next year. In addition, two thirds believe they will not be able to keep expense growth at their institutions below the rate of increase in the CPI over the next few years. Other concerns included the health of the financial markets, lack of alternative revenue streams, and declines in endowments.
In his welcoming remarks, Alan Griffith, vice chairman of The Bank of New York, said, ''Educational institutions are being forced to make difficult decisions as a result of the challenging economic environment in which they operate. The pressure to control the growth of operating budgets, or in some cases reduce them, is unavoidable. As a committed partner to the higher education marketplace, The Bank of New York feels it is important to provide a forum where finance and investment officers have an opportunity to share views and best practices, and to gain insights from a diverse group of speakers, panelists and participants.''
Carol T. Christ, PhD, president of Smith College, delivered the keynote address on the need for greater communication between publics and privates about shared budgetary constraints, mission and campus culture. She said, ''Publics increasingly act like privates in their attempts to generate resources independent of state support, through higher tuition, through increasing the proportion of out-of-state students, through fund raising, and through revenue producing programs. Privates act increasingly like publics in their efforts to recruit a diverse student body and to increase access.''
The event provided higher education officials the opportunity to interact with peers and to examine a range of pressing finance and investment issues unique to this marketplace, including the spending policy implications of lower endowment levels, challenging fundraising conditions, a declining state appropriations environment and an increasing reliance on debt financing for campus capital improvements. Educational sessions were held on these and other timely issues with the goal of facilitating best practices in the higher education finance and investment community.
Among the seminar topics:
-- Spending Policy Implications for Higher Education Institutions Following Three Fiscal Years of Difficult Endowment Performance; Speaker: Lou Morrell, vice president for investments and treasurer of Wake Forest
-- Moody`s Ratings Process & The Credit Trends Facing Higher Education Institutions Today: Exactly What Factors Lead to a Ratings Downgrade or a Negative Outlook; Speaker: Naomi Richman, senior vice president of the Higher Education Ratings Team for Moody`s Investors Service
-- Understanding ''Underwater'' Endowment Funds: The Accounting, Investment, Management and Business Policy Issues Associated With This Problem; Speakers: Jerry O`Neil, CPA, New York Higher Education Practice Leader, and Sean Riley, CPA, Higher Education Practice Manager, both of PriceWaterhouseCoopers, LLC
-- The 2004 Outlook for the U.S. Economy and Financial Markets - Where Do We Go From Here? How Can You Best Position Your Institution`s Endowment Portfolio Given the Current Environment; Speaker: Kevin Bannon, CFA, chief investment officer of The Bank of New York
''In an environment where the risks of inflation and deflation are both present, the range of potential scenarios that investors need to consider in their planning process has never been greater,'' said Kevin Bannon, executive vice president and chief investment officer of The Bank of New York. ''Broadening the array of asset classes in portfolios and increasing the allocation to non-traditional asset classes such as hedge funds and real estate are the responses that we see many institutions taking. The Bank of New York projects that the performance of the financial markets in the year ahead, while remaining challenging, should provide investors with the opportunity to earn the type of positive returns they need to meet their goals for growth and income.''
Along with its affiliates, The Bank of New York is a leading provider of specialized banking and investor services for higher education institutions, including asset management, hedge funds, institutional custody, performance measurement, brokerage, planned giving, cash management, bond trustee and debt financing services. The Bank has relationships with more than 150 institutions of higher education throughout the United States.
The Bank of New York Company, Inc. (NYSE: BK) is a global leader in securities servicing for issuers, investors and financial intermediaries. The Company plays an integral role in the infrastructure of the capital markets, servicing securities in more than 100 markets worldwide. The Company provides quality solutions through leading technology for global corporations, financial institutions, asset managers, governments, non-profit organizations, and individuals. Its principal subsidiary, The Bank of New York, founded in 1784, is the oldest bank in the United States and has a distinguished history of serving clients around the world through its five primary businesses: Securities Servicing and Global Payment Services, Private Client Services and Asset Management, Corporate Banking, Global Market Services, and Retail Banking. Additional information on the Company is available at www.bankofny.com.
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