Brown University’s endowment saw an 11.3% return on investment for the year ending in June — ahead of a crucial vote this month in which the Ivy League school’s board of trustees Will decide whether to separate from Israel or not.
The endowment, which grew to $7.2 billion, provides the Providence, RI-based university with a record $281 million in its operating budget, according to a statement from Brown released Friday.
The head of the endowment is Brown alumnus Brian Moynihan. Chief Executive Officer of Bank of America which raised eyebrows last month when Decided to take volunteer position as Chancellor of the Corporation of Brown University.
The budget, representing 21% of total revenues, helped pay for financial aid for students as well as salary increases for employees.
The disinvestment vote, the date of which has not been made public, was a concession from the university administration to students who had set up a tent camp on the campus grounds. To protest the Israeli bombing of the Gaza Strip.
The vote will be held among the 54-member membership of the Board of Trustees. One of the members, Perceptive Advisors CEO Joseph Edelman, resigned in protest last month, saying the decision to hold the vote was “morally reprehensible” given that it “suggests that “The University’s response to growing anti-Semitism on campus.”
On October 7, 2023, Israel launched military operations in Gaza following terrorist attacks by Hamas, which killed approximately 1,400 soldiers and civilians. Monday marks the one-year anniversary of the massacre.
The administration promised students that there would be a formal vote on the question of disinvestment. In turn, students set up tent camps before graduation ceremonies last spring.
Brown was one of several universities that decided to reach a negotiated settlement with student leaders over campus protests.
Columbia, the University of Southern California, Northeastern University, Indiana University, Emory, Emerson College and other schools called on police officers to break up encampments and arrest protesters.
The Brown Divest Coalition is demanding that the board of trustees sever ties with companies “involved in human rights abuses in Palestine.”
In a letter published late last month, attorneys general from two dozen Republican-led states warned Brown that divesting from Israel could force them to “terminate any existing relationship with Brown and those associated with him.” , may be deprived of any university loans held by state pension schemes.” and other investment vehicles, and otherwise avoid associating with Brown.”
Like many other states, Rhode Island has laws that make it illegal to discriminate against Israel, but Brown is not subject to those laws because it is a private college.
While recent fighting in Israel, Gaza, and Lebanon have led to renewed calls for separation from the Jewish state, most colleges have rejected the idea, According to Insider Higher Ed,
Companies that have been targeted for ties to the Israeli military include arms manufacturers such as Leonardo and Lockheed Martin, as well as software giant Palantir and bulldozer maker Caterpillar.
Union Theological Seminary in Manhattan as well as San Francisco State University have agreed to reevaluate their investment screening processes. California State University, Sacramento made a similar decision earlier this year.
Brown’s endowment is the smallest in the Ivy League. The richest school in the world is Harvard, which boasts an endowment A total of more than $50 billion.
But the Cambridge, Massachusetts-based institutional fund has performed worse than rivals like Yale and Princeton over the past two decades, as fund managers have taken home a whopping $800 million in fees. The return on investment has been less than expected.
