For more information contact: emailus@marcusevans.com James T. McGill who is the Senior VP for Finance and Administration form Johns Hopkins University delivered his presentation entitled "Exploring the Role of the Endowment within the Parent Institution's Overall Financial Risk Management Strategy" Join the 2014 North American Summit along with 60 CIO’s and top decision makers from North America’s largest corporate and public pension funds as well as foundations, endowments and those offering the latest investment strategies on the marketing. For more information contact: emailus@marcusevans.com

1. J
Jim McGill
Senior VP for Finance and Administration
Johns Hopkins University (retired)
1

2. Governing
Board
Investment Finance
Committee Committee
C i
SVP/EVP/CFO
Faculty Donors
CIO
Stude ts
Students Development
Staff
2

3. 3

4. 1. Comparative Economics
C i E i
2. Control
• Fiduciary responsibility
• Division of responsibility
between i tit ti
b t institution and
d
investment manager
4

5. 1. Investment Committee
• Size
• Composition
2. Relative roles of CIO and
Committee
C itt
• Asset allocation
• Benchmark selection
• Manager selection
• Performance reporting
• St ffi
Staffing d i i
decisions
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6. 6

7. 1. Make money with controlled risk
2. Other duties
Oh d i
• Serve mission and objectives of
organization
• Understand , acknowledge, participate
in broad, strategic, financial matters of
parent
• Always appreciate the primary
interests of parent
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8. 8

9. 1. q y
Institutional liquidity
• Not just endowment investment risk,
but need for institutional liquidity
• Endowment payouts, i tit ti
E d t t institutionall
dependence on capital markets (e.g.,
variable rate debt)capital calls
2. Reputational risks
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10. 1. Relate to faculty, students and donors
• Some faculty with professional investment interests;
f l h f l
others in monitoring administration
• Some student directed investments
2. Positional politics, e.g., apartheid, Darfur, sweat
shops, etc., etc.
3.
3 Serve on institutional committees – risk
management, capital planning, benefits, etc.
4. Broader community service
• Philanthropic entities – boards, investment committees
• Institutional professional groups, e.g., NACUBO
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