The endowment is more than a pool of capital, it is a strategic asset and vital force that sustains the university’s future. Guided by the University's motto - "Spiritus est qui vivificat." ("It is the Spirit who gives life.") - the endowment is managed through a rigorous process and aligned strongly with the spirit and mission of the institution—breathing life into academic excellence and servant leadership. The primary long-term objective of the endowment is to earn a rate of return that is sufficient to support a prudent spending policy and preserve the endowment's inflation-adjusted asset value.
Impact
Each year the University spends approximately 4.5% of fair market value of the endowment assets measured on a trailing sixteen quarter basis. Annual spending from the endowment contributes to various areas across University life:
- Scholarships and financial aid to students and student athletes
- Programs and research for faculty
- Resources to attract and retain faculty chairs and deans
- Support for critical operations
For the 2024-25 academic year, the endowment distributed $31 million supporting scholarships (16%), salaries and benefits (4%), and general operations (80%).
Understanding the Endowment
The endowment is an investment pool comprised of nearly a thousand gifts made over several decades having a variety of designations and purposes. Some endowment funds are permanently restricted which require the original corpus of the gift to be maintained in perpetuity, while only income distributions generated from investing the corpus may be expended. Term endowments are donor-restricted gifts which require a specific payout, of which, the corpus may be spent in order to meet the payout requirements. Quasi endowments are Board designated funds that are generally unrestricted to help support critical needs of the University. While each fund is distinct, they are commingled for investment purposes and managed on a unitized basis similar to that of a mutual fund.
Governance
A process-driven approach to governance is optimal to maximize chances for long-term success. The Board of Directors is responsible for the endowment. The Board of Directors delegates its fiduciary oversight to the Investment Committee, whose members all have professional investment experience and provide advice and direction to the Investment Office. The Investment Office manages the day-to-day operations of the endowment within the guidelines and philosophies articulated by policy, which is reviewed annually by the Board of Directors.
Partnering with Duquesne
Without the good work of our investment partners, we cannot do ours. The Investment Office seeks out differentiated investment partners showing:
- Clear culture and business vision
- Strong shared cognitions
- Properly sized and aligned strategy
Interns (The Obsenica Scholars Program)
Named after Duquesne alum, Adam Obsenica who passed away in 2013, the Obsenica Scholars Program is a two to three year internship program in which undergraduates are hired for professional mentoring and training in the field of institutional investment management.