U of M will apply institutional neutrality to investment decisions in Consolidated Endowment Fund

Board of Regents action follows public discussion and community input

Following Board of Regents approval at a special meeting earlier today, the University of Minnesota will adopt a position of neutrality related to investing its Consolidated Endowment Fund. The Board’s action instructs that those investment decisions continue to be based on financial criteria already defined in policy. 

Last spring, the Board received requests to divest from Israeli companies or companies that do business in Israel. Community feedback since that time has both supported and opposed divestment. The Board’s action formally declines the request to divest from Israel-related investments. 

“For the past several months, we have sought out expert analysis and a variety of perspectives on how the University invests its Consolidated Endowment Fund,” said Board Chair Janie Mayeron. “We have reviewed how this fund operates, how it supports affordable education for students, groundbreaking research, and community engagement, and the possible financial challenges of divestment. We’ve also welcomed input from members of our community, and we respect their deeply held perspectives. In the end, it is clear our community is divided on the topic. After careful consideration of all this input, we believe today’s action honors our fiduciary duty and the long-term needs of the University.”

The Board’s action follows an in-depth discussion about the Consolidated Endowment Fund in June and a July review of options for policy direction for the endowment’s investments — including a potential position of neutrality. 

In the approved resolution, the Board recognized that divestment may be appropriate in very rare circumstances and directed President Rebecca Cunningham to develop a process for future requests, which is expected to come before the Board for its review by the end of the academic year. The Board has requested that process require requests to: 

• Demonstrate how the investment is fundamentally incompatible with the University’s core mission and values, 
• Confirm there is broad consensus regarding the request within the University community of students, faculty, staff and alumni,
• Outline the potential impact on the social and political matters and events that the request is designed to address, and
• Illustrate the financial and operational impact to the consolidated endowment fund should divestment be implemented.

This action does not reverse any previously adopted positions or affect ongoing efforts to integrate environmental, social, and governance (ESG) principles into consolidated endowment fund investment decisions, a focus that is already codified in Board policy. The Board has previously cited that the decision to shift some investments toward ESG-related funds has been broadly supported within the University community and directly reflects commitments related to the University’s strategic sustainability plans. The action also does not limit the ability of the University community to express views of important social, global and political natures. The University will continue to provide a forum for expression and dialogue to occur.

Public comment encouraged through Board of Regents Virtual Forum

The Board continues to welcome public comment on any topic through the Board’s Virtual Forum. The public may submit audio, video or written comments to the Virtual Forum from anywhere at any time. All comments are shared directly with Regents and included in the Board’s public docket materials. Individuals are encouraged to visit the Virtual Forum to submit their comments.

The Board of Regents is scheduled to meet next on Sept. 12-13. Visit regents.umn.edu for more information.