NTHU Endowment Fund

Introduction

For many years, the financial operations of the University Endowment Fund were governed by the public-sector budgeting system, with most revenues and expenditures incorporated into the National Treasury system. As a result, the use of funds was subject to considerable restrictions and lacked flexibility, limiting the University’s ability to make effective use of its financial resources.

Leading universities around the world, many with histories spanning more than a century, have accumulated substantial endowment funds to support their long-term development. For instance, among the top five universities in the United States, the average endowment per student approaches US$1 million, providing a strong financial foundation for sustainable institutional development. Establishing a university endowment fund not only supports sound university governance but also plays an important role in enhancing academic excellence and institutional competitiveness.

At the end of 2012, National Tsing Hua University established the NTHU Endowment Fund and formulated its investment plan based on the principles of prudence and sound management. The primary objective is to enhance the effective use of the University’s endowment assets and pursue sustainable long-term investment returns. Only interest income, dividends, and capital gains are used to support University operations, while investment priorities are given to companies with stable and sustainable operations and a strong commitment to social responsibility.

To ensure the sustainable operation of university endowment funds, broaden the scope of fund utilization, and strengthen university autonomy, the Act Governing the Establishment of Endowment Funds at National Universities was amended on February 4, 2015. The amendment clearly defines investment procedures, sources of investment capital, and permissible investment instruments, thereby providing greater flexibility in the management and utilization of university endowment funds.

In alignment with investment policies supporting the Sustainable Development Goals (SDGs), since March 10, 2021, the University has excluded exchange-traded funds (ETFs) and individual stocks associated with the coal, petroleum, steel, cement, and plastics industries from its investment portfolio. The University’s Investment Management Team reviews companies’ Corporate Social Responsibility (CSR) Reports and takes into consideration three major global ESG indices: the FTSE ESG Index, Dow Jones Sustainability Index (DJSI), and MSCI ESG Index. Other investment considerations and risk-control measures are also assessed to ensure prudent investment selection in accordance with the principles of responsible investment.