Research On Management Policy For University Endowment Funds

University endowment funds are a diverse group. They display huge differences in terms of size, risk tolerance, and immediate purpose. It's a new subject in China on the research of management strategy in university endowment funds. Based on the economic behaviour of the donater, the role of endowment funds, the spending rules, the idea of asset allocation, asset portfolio and risk controlling, the strategy of investment and management contents, this paper makes systematical analysis of management strategy in university endowment funds.1.This paper reviews and gives a summary on the contents, results and status of the University Endowment Funds at home and abroad. It points out the shortages in the study and management of the University Endowment Funds in China. It defines many concepts, summmarizes the train of thought, method, framework, difficulties and innovations of the dissertation.2.This paper analyzes the economic behaviour of denoter. It presents the cultural undertakings of endowment should be reinforced in the university, and tried to foster donative consciousness for students.3.It is also analyzes the important purposes of endowment funds to the development of univeresities. Endowment funds is not only the important capitals in many universities, but also the important symbol of position. It existed for two functions of university endowment funds: maintain the purchasing power of each endowment with the goal of providing a predictable and sustainable level of income to support current operations.4. A lot of universities target their endowment spending at a fixed spending ratio or all of them. Because of volatile inflation, this is not optimal. This paper suggested three dynamic models of spending rules in accordance with historical capital values, inflation-adjusted value and setting a target rate.5.The features of investment of university endowment funds is chronicity and stability, and the asset allocation is the key points in investment. It has been argued the asset class, the importence of asset allocation, the process of asset allocation and the kinds of asset allocation;then discusses about assets allocation at continous tome. It has been also suggested that the factors of asset allocation should be considered to university endowment funds:Liquedity,risk and return are three indispensable elements, and proposed the optimal asset allocation strategies of university endowment funds in china.6.The management of university endowment funds.is a portfolio choice of long-time investment. This paper expounded thecontent and system of asset portfolio throry from several angels. This paper analyzes the features of returns and risks of asset portfolios; discribing and evaluating risk measuring methods of funds; putting forward policies and techniques of risk management: scatterring risk by assets allocation, lowing risk by long-term investing, evading risk by using financial dervative tools and diverting risk by many otherchannels;.proposed one asset allocation model based on risk neutral features and the principle of maximizing utlity. It introduced the application two typical asset allocation strategy of university endowment funds.7.This paper has addressed the models of management decision process and the asset portfolios decision of university endowment funds.