Weekly Market Update

NC STATE ESG ENDOWMENT FUND SHOWS PROMISING RETURNS

Thursday, June 7, 2018

North Carolina State University reported that a separate endowment fund, invested exclusively with environmental, social, and governance ("ESG") strategies, outperformed NCSU's conventionally invested endowment in the first half of 2017. The parallel fund was established after the University received a $50 million gift from the Park Foundation, with the stipulation that it be invested in a "socially responsible fashion." NC State is among several schools that have been reevaluating their endowment practices. Some schools have implemented filters in stock funds to avoid investing in companies that don't meet certain ethical, environmental, or diversity standards. Additionally, some money managers have provided alternative outlets for endowments by creating funds that meet ESG standards.

In Other News

Rating Agency Update

  • Moody's affirmed St. Vincent College's Baa1 rating. The outlook is stable.
  • Moody's downgraded the University of Northern Colorado's rating from A2 to A3. The outlook is stable.
  • Moody's assigned Aa1 to North Carolina State University's Series 2018 Refunding Bonds. The outlook is stable.
  • S&P assigned AA to North Carolina State University's Series 2018 Refunding Bonds. The outlook is stable.
  • Moody's assigned Aa2 to Auburn University's Series 2018-A Revenue Bonds. The outlook is stable.
  • S&P assigned AA to Wake Forest University's Series 2018 Revenue Bonds. The outlook is stable.
  • S&P affirmed St. John's College's BBB rating. The outlook is stable.
  • S&P affirmed Lebanese American University's AA- rating. The outlook is revised from negative to stable.
  • S&P affirmed Jacksonville State University's A rating. The outlook is revised from stable to negative.
  • S&P affirmed Doane University's A rating. The outlook is stable.
  • S&P affirmed Florida International University's AA- rating. The outlook is stable.