Tufts prides itself on being a socially conscious university whose students care deeply about global issues. Recently, however, an activist group has questioned whether or not Tufts practices what it preaches when it comes to how the university invests the money in its endowment fund.
That group is the Sudan Divestment Task Force (SDTF), whose Web site states that it is calling on institutions such as Tufts to divest themselves of companies that do business with the Sudanese government.
The companies targeted by this campaign are ones who both "contribute to government revenue" and "impart minimal benefit to the country's underprivileged." The SDTF hopes that universities will use their financial power to prevent companies from supporting the Sudanese government, in the hopes of alleviating the problem of the country's ongoing conflicts.
This question has taken on additional importance now that Tufts has kicked off its "Beyond Boundaries" fundraising campaign, which means that the university will have more money to invest than ever before.
According to the campaign Web site, the university already had an endowment worth $1.2 billion as of June 30. With the start of this new, intensive fundraising initiative, Tufts is on its way to raising another $1.2 billion, 60 percent of which would go into the endowment fund.
In May of this year, Tufts Director of Public Relations for Medford and Somerville Kim Thurler told the Daily that Tufts has no direct investments in the Sudan. To this, she added, "We reviewed our direct investment holdings some time ago and determined that we didn't have investments in Sudan, and we do not plan to make such investments in the future."
Thurler said that the money that currently makes up the endowment was largely donated by private individuals who have some connection to Tufts. "Nearly two-thirds of contributions come from individuals including alumni, parents, students and friends of Tufts," Thurler said. She added that "corporate and foundation grants generally make up the remaining one-third."
Thurler's statements, however, do not eliminate the possibility that indirect investments in companies whose business practices have been called into question exist. "As a matter of policy, Tufts doesn't talk about specific endowment investments," she said.
The university only provides basic information about its investments: "We do talk about asset classes in which the university invests," Thurler said. According to information from Tufts' Finance Division Web site, endowment funds are currently being managed "to maximize endowed resources." According to a pie chart found on the Web site, 45 percent of the endowment is invested in global equity, 15 percent in absolute return, ten percent in private equity, ten percent in core fixed income, seven percent in real estate, five percent in TIPS/commodities, five percent in high yield investments, and three percent in timber.
The Web site states that the purpose of these endowment funds is "to support the long-term welfare of the university."
Income is generated through the investment of endowment funds, a process which is overseen by Tufts' Investment Committee, a division of the Administration and Finance Committee. According to its Web site, it is responsible for the "investment, reinvestment and management of all investment assets." Chief Investment Officer Sally Dungan declined to be interviewed about the workings of this group.
Sophomore Mary Langan, one of the 188 students at press time who had signed a petition calling for Tufts to divest itself of companies connected to the Sudanese government, feels that Tufts should be more open about its investments. "Tufts has a corporate and social responsibility to be responsible with where it invests, and by not being more forthright with where it invests its money, it's really letting the university and students down," Langan said.
Another possible concern is the lack of guidelines in place designed to prevent the Investment Committee from making such investments. "Tufts does not have a policy on socially responsible investing," Thurler said.
Despite the lack of transparency about the workings of the Investment Committee, there are some initiatives that clearly benefit the global community as well as Tufts.
One such program is the Omidyar-Tufts Microfinance Fund, which resulted from a $100 million endowment gift from Pierre and Pam Omidyar. The Omidyar-Tufts Microfinance Fund describes microfinance as a way to help impoverished people by offering them loans that are relatively small compared to other types of loans.
The income from the Omidyar fund will also support a number of socially conscious programs at Tufts, as well as the continuation of the microfinancing initiative itself. According to the fund's Web site, "Fifty percent of earnings from the fund will be reinvested in the original pool for additional microfinance programs. The remaining 50 percent of income will advance important Tufts programs, such as support for faculty, financial aid, debt forgiveness for graduates pursuing careers in public service and scholarships to enable economically disadvantaged students to attend classes during summer session."
