Here’s an interesting news item from Bloomberg. American university endowments are faring well again as investments are once more producing much better returns. That’s not what I am drawing attention to, however. The article also tells us that the 835 institutions surveyed between them hold $448.6 billion of assets. This means that the average US university has reserves of some $537 million. Wrapped up in that is Harvard’s mouth-watering $32.7 billion, a sum that would allow it to bail out Greece if it wished.
We should not however sit around in amazement, those of us in other countries need to do something to build up viable reserves. University endowments are not about creating luxury in higher education, they are about creating an ability to invest in real excellence, and also to provide proper supports for students who not so well off. US graduates have long accepted that supporting their university is one of the things that you do, and this acceptance allowed American universities to become truly world-beating. We need to develop the same habits. We need to create the kind of reserves that allow universities to secure their future and to avoid that constant knife-edge budgeting that afflicts most universities across the world. We need our universities to be really excellent and to invest in the future of all parts of society.