A Message from the Board of Trustees: Update from the Trustee Investor Responsibility Committee
December 2, 2024
Dear all,
I am writing to share the memo below from members of the Board of Trustees.
Dear Members of the Vassar Community,
We write today, on behalf of the Board of Trustees, with a response to the request from the Campus Investor Responsibility Committee (CIRC) for the Trustees to consider a proposal made by students advocating for Vassar’s divestment from military and surveillance companies in its endowment.
As a Board, we are committed to working with the Vassar community to address global concerns in a manner consistent with Vassar’s educational mission and the Board’s fiduciary duty. We thank the students, CIRC, the Trustee Investor Responsibility Committee (TIRC), and all members of the Vassar community for providing useful perspectives.
In May 2024, CIRC convened with students to discuss the students’ proposal to “divest its endowment from companies that design, manufacture, sell, and/or finance military and/or surveillance technologies.” The students authoring the proposal also requested that Vassar implement a military divestment screen for new and renewed managers of funds and that the College improve the transparency of its investments and practices used to manage the endowment. In the ensuing weeks, CIRC met to consider the proposal.
In September 2024, although CIRC did not support or reject the proposal, CIRC voted to forward the proposal to TIRC for a thorough and considered review. On October 25, TIRC met with CIRC and students who had helped craft the proposal. Since then, the Board of Trustees, including members from TIRC, has taken time to discuss the proposal fully and weigh the various considerations, and has come to the decision that Vassar will not divest from military investments. The Board did, however, decide to enhance transparency about the policies and practices that govern our stewardship of the endowment.
The Board’s decision was the result of robust dialogue—with students, CIRC, TIRC, discussions with Vassar’s endowment investment manager, and the full Board—and re-affirmation of the College’s educational mission and the Board’s fiduciary duty. Our focus is on working to ensure Vassar is financially accessible and continues to offer a dynamic curriculum. As a Board, we discussed the importance of stewarding the College’s assets for the long-term future. Almost 30% of the College’s operating budget each year comes from the endowment. Making an investment decision that does not have a basis in the College’s long-term investment strategy could have a negative impact on the ability of the College to support its educational mission over time. Extraordinary circumstances will, and should, result in the need for the Board of Trustees to take those circumstances into consideration when making investment decisions. We address such decisions within their unique historical, financial and political circumstances.
It is important to understand that Vassar does not select or directly control the selection of companies in which the endowment is invested. Vassar’s investment strategy relies on investing through third-party investment managers and funds. While the endowment’s exposure to companies engaged in the manufacturing of military and surveillance technologies is negligible, the companies in which the endowment is invested change regularly. Even limited exclusionary changes in the composition of our investments would reduce our access to investment managers, potentially compromising the long-term return of the endowment.
The Board understands the benefits of enhanced clarity and community education about how the endowment is managed. To address this need, we will make information available on the Web about how the endowment works including the targeted asset class allocation and how investments are managed. Additionally, Vassar’s Office of Finance and Administration will offer multiple workshops for interested members of the community to learn more about the endowment and its operations.
In summary, the Board has decided not to change its approach to its investment strategy; however, we have committed to increasing community education about how the endowment is managed. Again, we are grateful for the effort that students, faculty, alums, and CIRC have put into these discussions and our decision reflects our deep commitment to Vassar’s educational mission and to fulfilling the Board’s fiduciary duty.
Sharon Davidson Chang ’84, P’19
Chair, Board of TrusteesLeslie Jackson Chihuly ’83
Chair, Trustee Investor Responsibility CommitteeJohn McCormick ’89
Chair, Investments Committee
Thanks,
Elizabeth H. Bradley, President
Vassar College
Poughkeepsie, NY 12604
@EHBVassar