University faces ‘complicated choices’
Not long after the Harvard Management Company reported an 11.3 percent return for fiscal 2013, and Harvard launched a $6.5 billion capital campaign, the University’s annual financial report strikes a somber note and points to challenging times in the near future. Vice President and Chief Financial Officer Dan Shore talks about the “complicated choices” facing the University. GAZETTE: The Harvard Management Company reported strong endowment results in September, but this report from the University strikes a very different tone. Can you explain the difference between the two reports for people who might feel as though they are somehow out of sync? SHORE: Sure. We did have a great year for endowment returns, and it’s critically important for the University that we have strong endowment returns. But the endowment, while it’s an important piece of our finances, it’s one piece, and it needs to be sustained in perpetuity. Even with strong investment...