Several university investments re-structured

Some of Tufts University's investments have changed from commingled funds to a separately managed account, according to the Board of Trustees' Investment Committee Chair Steven M. Galbraith.

A commingled fund has assets from multiple accounts, and a separately managed account is a professional investment firm-controlled assets portfolio, according to Investopedia.

However, according to Galbraith, Tufts has not changed how it invests, nor has it proactively aimed for investments in separately managed accounts.

"Generally, Tufts' endowment investments are made through commingled funds because the highly selective, active managers we choose prefer to manage client assets in a single portfolio, rather than in several separately managed accounts," Galbraith told the Daily in an email.

Sometimes, a manager will want to provide separately managed accounts for business purposes, in which case the Investment Committee reviews this request and decides whether or not to move forward, according to Galbraith.

"Whether we invest in commingled funds or separately managed accounts, we do not direct managers where to invest," Galbraith wrote.

The largest benefit to using separately managed accounts as opposed to commingled funds is Tufts' ability to clearly see its portfolio holdings every day, Laurie Gabriel, a member of the Investment Committee, told the Daily in an email.

"Commingled funds typically provide their holdings on a monthly basis," Gabriel wrote.

As a result of using separately managed accounts, Tufts will be more aware of their invested holdings and can take increased responsibility in the investments made, according to Matt Webster, a valuation specialist for the student-run Tufts Financial Group (TFG).

"Investors are given better updates on their investments every quarter and every year," Webster told the Daily in an email.

Webster wrote that it is easier to control separately managed accounts than commingled funds.

As valuation specialist, Webster, a sophomore, works with various group sectors and conducts fundamental analysis to help groups contribute to the Tufts Alpha Fund, which has $152,000 in assets under management. He also gathers information on companies, performs valuations -- which are estimations of an item's value -- using multiple models and works with the Portfolio and Investments Committee regarding control of the group's investments.

Through the use of separately managed accounts, Tufts will also have the opportunity to see cost savings, Gabriel added.

 

 

Re-structuring could make a divestment from fossil fuels initiative at Tufts more likely in the future, according to Department of Sociology Professor Paul Joseph in an Oct. 25 Daily article.