The relationship between the type of management and decisions to invest in local or foreign assets: the case of university endowment funds

Abstract

Universities are known to follow different models when making asset allocation decisions such employing external fund managers to manage asset allocation strategies and manage their investments. At other times the university uses internal mechanisms for management. This paper studies the impact of type of management on the choice of assets. The findings show that management is not a major determinant of choice of assets in the USA but is a determinant in the UK.