…. as green investments/sustainability become a focal point

The Yale endowment has a substantial and growing exposure to green investments with allocations in timberland, emerging markets and venture capital including more than $100 million in cleantech.

In the endowment’s 2009 fiscal year report it states that its exposure to cleantech is growing rapidly and in the past year alone Yale’s venture capital managers invested in more than nine new cleantech companies.

There are about 70 early-stage cleantech companies in the Yale portfolio.

Yale has increased its exposure to the sector in the marketable, real assets, and leveraged buyout portfolios as well.

“We are confident that the University stands to benefit enormously from the endowment’s involvement in green ventures, both as an investor and as a stakeholder in the health of the environment.”

Sponsored Content

The report disclosed a number of significant investments in cleantech companies, including Silver Spring (the developer of technology for smart grids), and Mascoma, a bio-ethanol research and development company.

Within emerging markets the endowment has invested in a number of public and private companies that provide solutions to reduce reliance on highly polluting fossil fuels including HT Blade, a Chinese wind turbine producer which among other things provides 90 per cent of the Chinese domestic demand and has just signed a $300 million deal to provide wind farms in Dallas, Texas.

Suntech Power Holdings has also been an endowment investment, the largest solar cell manufacturer in the world, also a Chinese-based company but listed on the New York Stock Exchange.

Yale has more than three million acres of timber investments that are all managed in a sustainable fashion.

In recent years Yale’s timberland managers have become increasingly involved in alternative energy projects that curtail carbon dioxide emissions.

Windfarms on forestlands represent another opportunity in which the endowment’s managers see potential.

“Investments in wind on Yale lands could provide a meaningful economic return to the endowment while helping the university achieve its sustainability goals. Yale’s wind power projects could play a critical role in helping Yale reach its stated goal of reducing 2020 emissions to 10 per cent below 1990 levels, further Yale in its quest to become the world’s greenest university,”the report said.

Timber is part of Yale’s real assets portfolio which in the past year returned 32 per cent, and since inception in 1978 has returned 14.3 per cent per annum.

According to the 2009 report a critical component of Yale’s ivnestment strategy is to create strong, long-term partnerships between the investments office and its investment managers. In the last decade, Yale has been involved in the development and growth of more than 12 organisations involveed in the management of real assets.

For real assets Yale uses an active benchmark of NCREIF and Cambridge Associates Composite and for private equity it uses the Cambridge Associates Composite.

Leave a Comment

Sort content by

Environmental engagement through benchmarking

Engaging real estate fund managers on their carbon footprint will be more easily implemented following the creation of a Global Real Estate Sustainability Benchmark, the result of collaborative work by a group of 11 of the world’s largest pension asset managers and Maastricht University.mrec4inarticleinline Sponsored Content scnative1 scnative2 scnative3

NEST-eggs incubated ethically through sharia mandate

The UK’s National Employment Savings Trust (NEST) has awarded F&C Asset Management and HSBC Global Asset Management the management of its ethical and sharia mandates.mrec4inarticleinline Sponsored Content scnative1 scnative2 scnative3

Most managers set to look outside the US

The managers most in demand by US investors are those with compelling presences in global and emerging markets’ equities, hedge funds, funds of hedge funds, private equity and real assets.mrec4inarticleinline Sponsored Content scnative1 scnative2 scnative3

Long-term risks and the human factor for fiduciaries

While risk for investment portfolios has been well-studied in the light of the financial crisis – if insufficiently before – the notion of long-term risk is still underexplored, according to Roger Urwin.mrec4inarticleinline Sponsored Content scnative1 scnative2 scnative3

Restrict rebalancing to US stocks and bonds: Morgan Stanley

A more efficient way to rebalance highly diversified multi-asset portfolios – which contain illiquid assets – could be to restrict the rebalancing to exchanges between US stocks and US bonds only, according to new analysis by Morgan Stanley.mrec4inarticleinline Sponsored Content scnative1 scnative2 scnative3

Deepwater execs strike oil with safety bonuses

As incongruous as it sounds, executives at Transocean Ltd – the company that owns the Deepwater Horizon oil rig which exploded in the Gulf of Mexico last year killing 11 people – have been paid bonuses for their improved safety performance.mrec4inarticleinline Sponsored Content scnative1 scnative2 scnative3

Previous