Endowment Investment Policy Updates
Milton Academy’s endowment performance is critical to the school’s current and long-term success. With a value of approximately $400 million the endowment contributed 18 percent of the school’s budget last year.
Recently, Milton Academy’s Board of Trustees discussed how the school’s endowment investment decisions are made and how environmental, social, and governance factors (also called ESG factors) are considered as part of the school’s investing philosophy. Following a review of university, college, and other independent school best practices, the Investment Committee recommended that the school add more specific environmental, social, and governance (ESG) guidance to the school’s Investment Policy Statement, which sets forth the guidelines the committee uses to manage the school’s endowment. These guidelines require that the committee collect ESG data annually, review existing and prospective investment managers’ holdings and firm practices, and incorporate that information to better inform investment decisions. The Trustees approved these changes in 2021, ensuring that ESG considerations play a larger role in the school’s investment process.
Overall, the incorporation of ESG factors into Milton’s investment policy marks an important step forward and places Milton in a leadership position among independent schools. It also demonstrates the school’s ongoing commitment to data-driven decision making, environmental sustainability, and diversity.