Abaev A.P. Activities of Endowment Funds for the Period of Destabilization of the Economy

DOI: https://doi.org/10.15688/jvolsu3.2016.3.15

Alan Pavlovich Abaev
Candidate for a Degree, Teacher,
Kaliningrad Branch of Moscow University of Finance and Law
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Ermaka St., 3, 236022 Kaliningrad, Russian Federation

Abstract. Endowment fund is gaining its importance as a source of financing higher education institution, and, therefore, the research of endowments’ activities is an urgent task. The current state of the economy in Russia is most often characterized as recessionary. The article sets the task to assess the conditions of endowment funds in times of crisis, under existing sanctions, lower oil quotations and other factors, as well as to analyze the profitability of endowment funds in this period. The study showed that the slowdown in the economy was reflected in the activities of endowment funds. Yield investment strategies significantly decreased in comparison with previous periods. The evaluation of the impact of various economic and political factors on the activities of endowment funds reveals their weaknesses and justifies the need for new approaches in the work of endowment funds. According to the author, the main problem is the lack of opportunities to invest in high-yield financial instruments (investments in futures, options, etc.). Therefore, in the years of economic instability it is more difficult for management companies to balance the profitability of the investment portfolios of endowment funds. According to a study of thirty endowment funds, yield for 2014 was 4.68 %, which did not exceed inflation. The financial turmoil in the world is reflected in the activities of endowment funds. Thereby giving rise to the need for new approaches in the work of endowment funds would enable them to overcome the existing problems and be more resilient in the future.
Key words: endowment funds, financial crisis, profitability of investment strategies, motivational incentives of donors, university.

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Activities of Endowment Funds for the Period of Destabilization of the Economy by Abaev A.P. is licensed under a Creative Commons Attribution 4.0 International License.

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