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Our “Spring of Service” continues…Student volunteers staffed the registration booth for the Autism Speaks Walk and got their hands dirty cleaning up Duke Forest. MBAs from UNC Kenan-Flagler Business School joined in, as the events were part of the annual Blue Cup competition between our schools.
How conversations with alumni helped Jeff Iannacone, Weekend Executive ’13, take the MBA plunge himself, and how he’s paying it forward with future generations of Fuqua students.
http://dukefuqua.com/1STY8ki
How conversations with alumni while researching MBAs can make an impact on your life and career.
Congrats to Delphine Sherman, MBA 06, CFO of Aspire Public Schools and finalist for Bay Area CFO of the Year (non-profits)! #bayareacfo
Business school endowments can seem a little like the controversy over income inequality. The most richly funded schools seem to get richer and richer, while the poorer schools pretty much remain poor.
Harvard Business School, for example, was the first school of business to have a billion-dollar endowment–back in the late 1990s. Today, it’s still number one, with a $3.3 billion endowment at a time when only two other schools–both among the richest in the year 2000–also boast endowments that exceed $1 billion: Stanford Graduate School of Business, and the University of Pennsylvania’s Wharton School. By 2020, there’s a strong chance that there will be at least eight schools in the billionaire category, including Chicago Booth, Northwestern Kellogg, MIT Sloan, Yale School of Management, and Columbia Business School.
An analysis of historical endowment data for 49 leading business schools by Poets&Quants shows that since 2010 endowments rose on average 7.7% per year. However, UC-Davis GSM grew its endowment 19.1% a year during the same time–the fastest growing endowment in the U.S. Not too far behind is another UC-school, UCLA Anderson with a 17.1% yearly growth rate. Michigan State’s Broad School and Babson College have both seen a 12.0% yearly increase, followed by USC’s Marshall School with 11.5% yearly growth and the Wharton School with 11.4% growth.
ENDOWMENT GAPS GROWING BETWEEN THE ‘RICH’ AND THE ‘POOR’
On the flip side, the schools with the slowest growing endowments are either not raising much money or investing for the future, be it facilities improvements or other developments. Ironically enough, the slowest growing endowment is that of another UC school, UC Irvine’s Merage with a 3.1% growth rate, which recently invested some of its endowment into their campus entrepreneurial hub: UCI Applied Innovation. Vanderbilt’s Owen school has also seen relatively slow growth since 2010, with 4.6% yearly growth along with Syracuse’s Whitman school with a 5.2% yearly growth. Michigan Ross is also growing relatively slowly, with a 5.5% annual growth rate since 2010.
Schools at the turn of the century looked much different than they do today. Institutions had just recovered from the dot-com bubble, which did not affect most endowments as dramatically as the 2008-2009 crisis. The gap between Harvard and Stanford was only $1 billion instead of the current $2 billion. Twenty schools had endowments above $100M and below $500M (Harvard was the only exception) so the “endowment gap” was small.
Fast forward to today and you’ll notice that endowments are starting to play a much bigger role in business schools. Greater endowment distributions are generating greater revenues for schools, allowing them to grant more scholarships to attract the best talent, hire the best faculty and staff, and keep their campuses new, or looking like new.
WHAT FUELS GROWTH? MARKET UPSWINGS AND DONATIONS
What causes endowments to change in value? It’s not simply a function of investment returns, though upswings in the markets certainly help to boost endowment values. But growth is more often than not a function of contributions from corporations, alumni and friends. And endowments are reduced for the yearly distributions (normally about 4.5%) which goes to fund faculty, student scholarships and programs.
In the not-too-distant past, endowments did not play as large a role in business school budgets. Today they have grown significantly and are starting to have a stronger influence on the competitive race among the schools. That influence will continue to grow into the future, giving the schools with larger endowments an edge when it comes to developing their programs, absorbing future economic shocks, and maintaining their elite reputations into the future.
(See following page for our historical data on nearly 50 business schools)
Author Daniel Bonsoms, a CFA, is undecided on which MBA offer he will ultimately accept. He’s worked in private equity for the past four years and currently lives in Los Angeles.
DON’T MISS: AMERICAN’S WEALTHIEST BUSINESS SCHOOLS or THE WEALTHIEST INTERNATIONAL BUSINESS SCHOOLS
The post The Boom In Business School Endowments appeared first on Poets and Quants.
Put your skills in international corporate strategy and risk management to the test at the Zurich Enterprise Challenge. (For Masters and MBA students). Register at https://goo.gl/BhG094
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The Kelley School of Business at Indiana University has announced the MBA application deadlines for the 2016-17 admissions cycle. They are as follows:
Early RoundDeadline: October 15, 2016
Notification: by December 20, 2016
Deadline: January 5, 2017
Notification: by March 15, 2017
Deadline: March 1, 2017
Notification: by April 30, 2017
Deadline: April 15, 2017
Notification: by May 31, 2017
Early application is encouraged. The first two deadlines are priority deadlines for merit-based financial aid consideration. For additional information, please visit the Kelley MBA admissions website.
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We'll take one of each, please!
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Yesterday was an amazing and very emotional day at the Startup Lab and Business Impact Lab with the final presentations. Awards were given to the best idea, best presentation, best team, most innovative and crowd favourite idea!Congrats to all participants, well done! And a big thank you to all IMBA team specially to our dear Sugata!
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There are many different approaches in tackling a GMAT Quantitative question effectively. Algebraically, working backwards from the answer choices, considering “lucky twins” – a smart test taker is flexible and takes a fresh new approach by evaluating each quantitative question individually, taking the route that is efficient and effective.
But how does said test taker become the smart test taker – what kinds of signs tip us off that we should go down a certain strategy road for a tricky and/or difficult quantitative question?
Think of the “kitchen calculator” – the kind of cheap plastic, four-digit calculator that you find at a Dollar Store that is only meant for grocery shoppers adding up the bill for bread, cheese, and milk. If you find yourself doing time-consuming multiplication or division calculations, and it seems like something the kitchen calculator cannot handle, stop and reevaluate how you are tackling the question.
Here’s a data sufficiency example where the kitchen calculator policy applies:
If a and b are positive integers, is a/b < 9/11 ?
(1) a/b = 0.818
(2) b/a = 1.223
Most test takers immediately take of the route of thinking they need to divide the fraction 9/11 – and yikes, is that a messy road (turning out it is 0.818 repeating). Is 9/11 that difficult to divide with a kitchen calculator? No, it is not. But if you immediately recognize something cannot be cleanly divided or multiplied, then you need to think again – the GMAT is not testing your ability to do endless division calculations and make tiny, minute comparisons (say 0.2221 versus 0.2223). Reassess your strategy.
For this particular question, the best way to look at it is to consider rules for inequalities and think of easier numbers to estimate. 9/10 is equal to 0.9, so we know that 9/11 is a little bit under 0.9, so (1) is very likely sufficient on its own.
For statement (2) if I actually think about the initial inequality given – a/b < 9/11, then I should realize that flipping this will give me b/a > 11/9. Obviously, 9/9 is equal to 1, so 11/9 is probably 1.223 making (2) sufficient on its own.
Therefore, our answer is (D).
Some test takers will feel they need to get to some a bit closer and accurate for the sake of their comfortable level and sanity that (D) is the right answer.
If you feel like you are one of these test takers, than an alternative way is knowing common fractional to decimal conversions (⅛, ⅜, ⅝ and so on) including 1/11, which is equal to 0.0909… From there, we are able to simply multiple 9 * 0.0909 to give us 0.81818, helping us with the first statement. 1/9 is equal to 0.1111, so 11 * 0.1111 gives us 1.222, therefore helping us evaluate the second.
But try to consider the kitchen calculator method, or at the very least, understanding the GMAT is not looking for crazy decimal or fractional calculations, and there is probably a reasonably accurate way of estimating the right answer.
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As Uber, Airbnb, and others grow, answering questions about employment and benefits becomes urgent.
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