Ariel Investments’ Post

Proud to have supported PGIM and UNCF in their recent research around the unique challenges facing HBCU endowments right now. Holding more modest assets on average compared to many peers, this resource gap has led to smaller investment teams at many HBCU institutions. As a result they tend to be more risk-averse and lack exposure to alternative asset classes that could potentially drive better investment outcomes over the long term. This means there is considerable opportunity in the years ahead for these endowments to bolster their returns and fund institutional growth, with investment partners complementing internal teams to drive greater success. https://lnkd.in/eyPxw-x2

Historically black colleges and universities (HBCUs) play a key role in uplifting students and communities. However, their endowments - crucial to their financial stability and growth - face serious systemic challenges. As part of PGIM's long-held commitment to advancing diversity, equity, and inclusion, we conducted a first-of-its-kind directional study in partnership with UNCF (United Negro College Fund) to understand the constraints that HBCU investment professionals face in growing their endowments and the impactful role the asset management industry can play to support them in their endowment efforts. Both PGIM and UNCF seek to support HBCU students, faculty and endowment stewards, ensuring the sustainability of these critical institutions to support the next generation of investment professionals. Access the research here: https://on.pru/3u3wotR #HBCUs #AssetManagement #Endowments

Historically Black colleges and universities (HBCUs) comprise just 3% of America's higher education institutions, yet confer over 15% of all bachelor's degrees awarded to Black students. There are many amazing elements to their role, but one that is less understood is the status of their endowments. Currently, no HBCU endowment exceeds $1 billion, and the majority manage less than $100 million. With strong endowment funds, colleges and universities can fund campus improvements, offer grants and scholarships, and keep tuition increases at bay, ensuring high-quality education is affordable and accessible. The asset management industry is in a unique position to work directly with HBCUs to strengthen their endowments in areas such as risk management and asset allocation, amplifying the impact of their investments and creating greater institutional stability for generations to come.    PGIM and the UNCF (United Negro College Fund) recently partnered together to publish a first-of-its-kind study on the opportunities for HBCUs to manage their endowments and how asset managers can play a larger role in helping. https://on.pru/3OBtVxL #HBCUs #AssetManagement #Endowments

“Despite only representing 3% of all four-year institutions, [HBCUs] graduate 17% of all bachelor’s degrees and 24% of all STEM-related bachelor’s degrees for Black students, enrolling ‘more than twice as many Pell Grant-eligible students as non-HBCUs.’ Charging tuition rates that are on average nearly 30% less than at comparable non-HBCUs, these schools are among the best return on our nation’s post-secondary education investments. However, HBCUs have historically been underfunded and continue to be.” Writing for Diverse: Issues In Higher Education, Thurgood Marshall College Fund president and CEO, Dr. Harry L. Williams, describes how investing in HBCUs can help increase higher education enrollment among Black students: https://lnkd.in/e8-qsAfB

Historically Black Colleges and Universities — despite offering a critical learning path for Black students seeking quality higher education — still face systemic challenges in accumulating substantial #endowments, a crucial factor for ensuring institutional stability and growth, according to a study released Monday. The study, “Investing in Change: A Call to Action for Strengthening HBCU Endowments,” was launched by the United Negro College Fund (UNCF) and PGIM, the global asset management business of Prudential Financial. The study illuminated the challenges HBCUs face — and discussed how the asset management industry can work with HBCUs to achieve better outcomes. The study makes clear that private HBCUs have far fewer resources than non-HBCUs when it comes to overseeing their endowment portfolios — placing limitations on how they are able to use their endowment, manage risk and make asset allocation decisions. The study indicates four main constraints for HBCU endowment professionals tied to lack of funding and the comparably small size of their endowments:

Historically black colleges and universities (HBCUs) face an uphill battle when it comes to accumulating substantial endowments. According to a joint survey by PGIM and the United Negro College Fund, HBCUs have much smaller endowments compared to Ivy League institutions and many public universities. This disparity poses a challenge to the financial stability and long-term growth of HBCUs. It's important to recognize this issue and work towards finding solutions that support and uplift these institutions. #HBCUs #HigherEducation #EndowmentDisparities https://lnkd.in/eUVKuAGt

In honor of #BlackHistoryMonth, we are spotlighting a new study launched by UNCF and PGIM, which explores the systemic challenges Historically Black Colleges and Universities (HBCUs) face and how the asset management industry can work with HBCUs to achieve better outcomes. “Our hope is that this research initiates critical conversations about how to level the playing field for HBCU endowments and how asset managers can engage with these vital institutions to help them meet their long-term goals,” said Sancia Dalley managing director and head of #PGIM’s DEI Portfolio and #HBCU Investment Strategy. “PGIM’s work with HBCUs and UNCF is one way we can help fuel an ecosystem that is already producing a strong talent pool of future professionals for our industry.” To read the full report, visit https://lnkd.in/dJe5keeG Shout out to the #community and #membership organizations working to bridge the #fundinggap including the National Association of Investment Companies (NAIC) National Association of Securities Professionals VC Include Black Women in Asset Management (BWAM) Black Venture Capital Consortium (BVCC), Toigo Foundation, and so many more. Comment below to add to the list! #blackhistorymonth #endowments #HBCUs #capitalmarkets #WhyIDiF

The National HBCU Business Deans Roundtable is honored to share a transformative scholarship program brought to you by the Descendants Truth & Reconciliation Foundation (DTRF) and the Thurgood Marshall College Fund (TMCF). This initiative is designed to support the educational dreams of Descendants of Jesuit and Catholic slaveholding families in the United States. Scholarship Details: Award: Up to $10,000 per year for college expenses, based on financial need Eligibility: Descendants who are currently enrolled or have been admitted to an accredited two- or four-year post-secondary institution Purpose: To assist with tuition and associated fees for the Academic Year 2024-2025 Eligibility Requirements: Must be enrolled full-time or part-time at an accredited post-secondary institution or continuous education program Open to students attending two-year or four-year institutions Must be a U.S. Citizen or legal permanent resident with a valid permanent resident card or passport stamped I-551 Must demonstrate financial need and have the 2024-2025 FAFSA on file at your selected university/college Must remain in good academic standing, meeting satisfactory academic progress Must have a verification number or certification number from the GU272 Descendants Association How to Apply: Confirm your status as a lineal descendant: Visit the Descendants Truth & Reconciliation Foundation website to verify your certification. Complete your application. Important Dates: Application Closes: Applications will be accepted until funds are exhausted. This scholarship represents a powerful step toward honoring history and empowering the future. If you are a Descendant, don’t miss this opportunity to receive financial support for your education and continue your journey toward success. #HBCU #ScholarshipOpportunity #BusinessEducation #DTRF #TMCF #HBCUBusinessDeansRoundtable https://lnkd.in/ghEis89A

#DYK: Money ranked UNCSA as one of the best-value colleges in North Carolina! In their 2024 Best College roundup, Money analyzed colleges across the U.S. based on alumni salaries, cost of attendance, financial aid, graduation rates and more. UNCSA scored 4.5 stars, placing it at the top of UNC System schools for value, and near the top in the state. See how colleges in North Carolina ranked ➡️ https://zurl.co/1YQy

Empowering Local Impact: Highlighting the Crucial Role of HBCUs In Oklahoma and across the nation, the underfunding of Historically Black Colleges and Universities (HBCUs) like Langston University remains a critical issue. Today, Oklahoma House Democrats, including Representatives Jason Lowe and Regina Goodwin, have brought attention to this disparity, advocating for equitable funding that reflects the vital role HBCUs play in our educational landscape. - Ensuring Support: HBCUs, such as Langston University, are not just institutions of higher learning but pillars of support within their communities. Despite facing financial challenges, these universities continue to provide invaluable opportunities for students to thrive academically and professionally. - Impact on Business Education: For HBCU Business schools, this advocacy underscores the importance of nurturing local talent and fostering innovation. By championing equitable funding, we ensure that future business leaders receive the resources they need to excel and drive economic growth in their communities. - Local Engagement: As students and faculty at HBCUs advocate for fair funding, they exemplify the values of community impact and resilience. Their efforts highlight the integral role that educational institutions play in shaping not only individual futures but also the broader economic landscape. Let's continue to support initiatives that uplift HBCUs and empower students to make a lasting impact. Together, we can foster an environment where every student has the opportunity to succeed and contribute meaningfully to our shared future. #HBCU #HigherEducation #CommunityImpact #EquitableFunding #LangstonUniversity #BusinessEducation #StudentAdvocacy #SupportLocal