"Compounding Interest in Your Investment Committee," an article written by Hamilton trustee and co-chair of the board's investment committee Henry W. Bedford, II, '76, was published in the July/August 2007 issue of Trusteeship magazine. Produced by the Association of Governing Boards of Universities and Colleges (AGB), Trusteeship reports trends, issues and practices in higher education to help board members and chief executives better understand their distinctive and complementary roles and to strengthen board performance. AGB is the only national association that serves the interests and needs of academic governing boards, boards of institutionally related foundations and campus CEOs and other senior-level campus administrators on issues related to higher education governance and leadership.
Bedford's article detailed how Hamilton's endowment returns have consistently ranked in the top decile of all colleges and universities nationally. He credited this outstanding record to the commitment of experienced alumni members of the board's investment committee. Committee members have been instrumental in guiding the asset allocation and strategies of the fund, which has outperformed the Standard & Poor's index by more than 4 percent annually over the last decade.
The article detailed six rules to which Bedford attributes the committee's success. They include choosing committee members who are willing and able to devote a significant amount of time on a weekly basis to the committee, selecting members who have varied and complementary expertise, identifying members who have experienced several market cycles, knowing money managers well before investing with them, avoiding conflicts of interest and planning for succession.
"Clearly, an investment committee organized and run in line with these guidelines requires a committed membership. One of Hamilton's strengths is the passion and loyalty of its alumni, evidenced by 25 consecutive years of better than 50 percent participation in our annual fund," Bedford concluded.
Bedford's article detailed how Hamilton's endowment returns have consistently ranked in the top decile of all colleges and universities nationally. He credited this outstanding record to the commitment of experienced alumni members of the board's investment committee. Committee members have been instrumental in guiding the asset allocation and strategies of the fund, which has outperformed the Standard & Poor's index by more than 4 percent annually over the last decade.
The article detailed six rules to which Bedford attributes the committee's success. They include choosing committee members who are willing and able to devote a significant amount of time on a weekly basis to the committee, selecting members who have varied and complementary expertise, identifying members who have experienced several market cycles, knowing money managers well before investing with them, avoiding conflicts of interest and planning for succession.
"Clearly, an investment committee organized and run in line with these guidelines requires a committed membership. One of Hamilton's strengths is the passion and loyalty of its alumni, evidenced by 25 consecutive years of better than 50 percent participation in our annual fund," Bedford concluded.
