Key Takeaways
- • Wesleyan University promoted Anne Martin to Chief Investment Officer following the resignation of predecessor Thomas Kannam, who was forced out in October 2010 after allegations of mishandling endowment assets for personal expenses.
- • Martin, a Yale endowment veteran trained under renowned CIO David Swensen, implemented a new governance philosophy emphasizing rational, long-term management and sustainability over aggressive performance swings.
- • Wesleyan's endowment grew 13% in fiscal year 2010 to $512.9 million, outperforming the 11.9% average return for college and university endowments that fiscal year, according to NACUBO/Commonfund data.
- • Martin's strategic priorities included increasing exposure to emerging markets and improving the endowment's risk management framework to protect and grow assets over the long term.
- • The leadership transition reflected a shift toward institutional discipline and process-driven investment management, addressing governance failures that had damaged the university's endowment credibility.
Summary
Wesleyan University transitioned leadership of its endowment in 2010 after a significant governance scandal forced out longtime Chief Investment Officer Thomas Kannam. In August 2010, the university appointed Anne Martin to the CIO position, promoting from within the investment leadership ranks. The move followed Kannam's October 2010 resignation under allegations that he had mishandled university endowment assets for personal trips and other unauthorized expenses.
Martin brought substantial credentials to the role, having previously served at Yale University's endowment where she oversaw venture capital, energy, and commodities investments under David Swensen, the pioneering architect of the "Yale model" of endowment management. Her appointment signaled Wesleyan's commitment to institutional reform and professionalizing its investment approach. University President Michael Roth emphasized the strategic importance of the leadership change, stating: "I'm most excited about the fact that our new Chief Investment Officer, Anne Martin, has put in place a process for the rational management of the endowment for the long term. What's really important is that over the long haul we protect the endowment and we help it grow and not be subject to the swings that we've seen in the past."
The endowment's financial performance vindicated the transition. In fiscal year 2010, Wesleyan's endowment grew 13% to $512.9 million, exceeding the 11.9% average return across college and university endowments that year as measured by the National Association of College and University Business Officers (NACUBO) and Commonfund. Martin's early initiatives focused on establishing sustainable investment practices, including increased allocations to emerging markets and improved risk management frameworks designed to insulate the endowment from short-term volatility while protecting long-term purchasing power.
Martin brought substantial credentials to the role, having previously served at Yale University's endowment where she oversaw venture capital, energy, and commodities investments under David Swensen, the pioneering architect of the "Yale model" of endowment management. Her appointment signaled Wesleyan's commitment to institutional reform and professionalizing its investment approach. University President Michael Roth emphasized the strategic importance of the leadership change, stating: "I'm most excited about the fact that our new Chief Investment Officer, Anne Martin, has put in place a process for the rational management of the endowment for the long term. What's really important is that over the long haul we protect the endowment and we help it grow and not be subject to the swings that we've seen in the past."
The endowment's financial performance vindicated the transition. In fiscal year 2010, Wesleyan's endowment grew 13% to $512.9 million, exceeding the 11.9% average return across college and university endowments that year as measured by the National Association of College and University Business Officers (NACUBO) and Commonfund. Martin's early initiatives focused on establishing sustainable investment practices, including increased allocations to emerging markets and improved risk management frameworks designed to insulate the endowment from short-term volatility while protecting long-term purchasing power.
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