NEW YORK — The White House Initiative on Historically Black Colleges and Universities (HBCUs) and JPMorgan Fleming Asset Management today co-sponsored a Financial Management Institute, providing 22 of the nation's HBCU presidents with substantive financial advice designed to help them provide more effective financial management of their institutions. Today's institute, which was also sponsored by the Coca-Cola Company, was the first of three such institutes to be held annually during the next three years.

For many HBCU presidents, a major challenge is developing a sound financial foundation for their institutions. HBCUs are often undercapitalized, with smaller endowments and fewer dollars per student and faculty member, and are often characterized by extremely conservative financial management. Today's institute focused on best practices in investment management, including strategic asset allocation and alternative investments, as well as financial aid management, strengthening infrastructure and charitable giving strategies.

"Many of our dynamic HBCU presidents have dreams to greatly improve their institutions by developing state-of-the art academic programs, building advanced technology facilities and recruiting high quality students and faculty," Secretary Paige said. "However, without sound financial management, those dreams will never become reality. There is much that we still must do on the federal level, but we cannot be the only source of outside support.

"We must find a way to further engage America's financial institutions, crafting innovative and visionary partnerships," Paige said. "By consulting with financial service experts, foundation executives and other leaders in the field of higher learning, these presidents will leave with a better idea of how to improve their institution's financial stability and have a better understanding of the cutting edge strategies in today's marketplace."

"We are proud to sponsor this important Financial Management Institute in partnership with the White House Initiative," said Akosua Barthwell Evans, managing director and national head of JPMorgan Fleming's Endowments and Foundations Group. "We have recognized for many years the important role HBCUs play in providing educational opportunities for many of America's African American youth. These institutes bring together a broad cross-section of experts from foundations, the U.S. Department of Education, higher education institutions and JPMorgan, providing an excellent opportunity to address some of the issues facing HBCUs."

In addition, JPMorgan Fleming worked closely with the HBCU presidents to determine and address key financial management issues facing their institutions. As part of the institute's objective, JPMorgan Fleming worked with the presidents to answer the following questions:

• What impact are market forces likely to have on the growth of our institution's endowment?
• What factors should we consider in developing an effective spending policy?
• How should our endowment assets be allocated given the spending needs of our institution and the changing market forces?
• What safeguards should be in place to ensure the effective management of the financial aid process?
• How do we position ourselves strategically to take advantage of the new forms of philanthropy?
• What are "hot funding" interests of traditional foundations?
• How do we position our institutions to take advantage of the transfers of wealth taking place through donor advisory funds?
• How do we ensure that we have an infrastructure and a team with the skills and experience in place that enable us to have sound financial management?
• How do we turn idle assets into revenue producers?

JPMorgan Fleming will continue to work with HBCU presidents, the White House Initiative on HBCUs and U.S. Department of Education officials to ensure that the institute develops program responses to these issues that are relevant, user-friendly and interactive.

The White House Initiative on Historically Black Colleges and Universities works to strengthen the capacity of historically black colleges and universities to provide excellence in education and successfully compete for federal grants, contracts or federally sponsored programs. Secretary Paige's office coordinates the initiative and provides staff and support to the HBCU advisory board.

More information about the White House Initiative on HBCUs is available at http://www.ed.gov/about/inits/list/whhbcu/edlite-index.html.