Key Takeaways
- • Duke's Advisory Committee on Investment Responsibility (ACIR) said divestment from controversial assets is unlikely, setting a bar of "broad and deep agreement" that an investment relates to activity considered morally abhorrent, per chair Emma Rasiel.
- • ACIR has received divestment proposals for fossil fuels in 2014, 2019 and 2022, and has recommended no changes to holdings in each case; it was skeptical of another fossil fuel petition pending more research.
- • The Duke University Management Company (DUMAC) reported a record $14.3 billion in total holdings for fiscal year 2026, with only $1.1 billion held in public assets.
- • Rasiel said legal agreements tied to hedge fund, private equity and venture capital investments have significantly curtailed endowment transparency, making it "simply not possible" for DUMAC to make many investments public.
- • ACIR encouraged the president and Board of Trustees to request greater transparency from DUMAC on fossil fuel assets, and its only prior divestment recommendation in this area was the 2008 Sudan-related divestment.
Summary
Duke's Advisory Committee on Investment Responsibility (ACIR) outlined the decision-making process for divesting from controversial assets at its annual town hall on Friday, while acknowledging that such action is unlikely. ACIR Chair Emma Rasiel, the Richard Y. Li professor of the practice in economics, presented to attendees before taking questions. According to The Duke Chronicle, the committee collects input on investment decisions, advises President Vincent Price on recommendations to the Board of Trustees regarding divestment, reviews divestment proposals and advises the executive vice president on proxy voting. Duke's endowment is overseen by the Duke University Management Company (DUMAC).
Rasiel said the committee would consider divestment only if members representing the Duke community were in "broad and deep agreement" that an investment relates to activity considered morally abhorrent. "The university won't use divestment as a symbolic adjudication of complex global issues," she said. ACIR has received proposals for greater investment transparency and for divestment from businesses involved with Israel and fossil fuels, recommending no changes in each case. The committee did encourage Price and the Board of Trustees to request greater transparency from DUMAC on fossil fuel assets. The only precedent cited for reversing a DUMAC decision was a 2008 ACIR recommendation to divest from companies doing business with the government of Sudan, which Rasiel attributed to mass murders in Darfur and a bill signed by former President George W. Bush.
On fossil fuels, ACIR received divestment petitions in 2014, 2019 and 2022 and recommended no changes each time. Rasiel said the committee was skeptical of another petition until more research exists, citing literature suggesting divestment from fossil fuels can potentially increase emissions. A question submitted in advance asked whether DUMAC planned a formal financed emissions commitment; Rasiel said the committee is "not at a point where we can think about this yet," noting that progress would require changes in corporate reporting legislation. Separately, Duke researchers led by Betsy Albright, the Dan and Bunny Gabel associate professor of the practice of environmental ethics and sustainable environmental management, are working on measuring endowment emissions impact using artificial intelligence, independent of ACIR.
On transparency, the committee described balancing ethical concerns with risk-adjusted returns as an "alignment" rather than a "trade-off." DUMAC's fiscal year 2026 return brought total holdings to a record $14.3 billion. Rasiel stated that "it's simply not possible for DUMAC to make many of its investments public," noting that only $1.1 billion of the endowment is held in public assets. She said that when endowments began investing in hedge funds, private equity and venture capital roughly 50 years ago, legal agreements significantly curtailed transparency. Attendees were directed to ACIR's response to a previous endowment transparency proposal for further details.
Rasiel said the committee would consider divestment only if members representing the Duke community were in "broad and deep agreement" that an investment relates to activity considered morally abhorrent. "The university won't use divestment as a symbolic adjudication of complex global issues," she said. ACIR has received proposals for greater investment transparency and for divestment from businesses involved with Israel and fossil fuels, recommending no changes in each case. The committee did encourage Price and the Board of Trustees to request greater transparency from DUMAC on fossil fuel assets. The only precedent cited for reversing a DUMAC decision was a 2008 ACIR recommendation to divest from companies doing business with the government of Sudan, which Rasiel attributed to mass murders in Darfur and a bill signed by former President George W. Bush.
On fossil fuels, ACIR received divestment petitions in 2014, 2019 and 2022 and recommended no changes each time. Rasiel said the committee was skeptical of another petition until more research exists, citing literature suggesting divestment from fossil fuels can potentially increase emissions. A question submitted in advance asked whether DUMAC planned a formal financed emissions commitment; Rasiel said the committee is "not at a point where we can think about this yet," noting that progress would require changes in corporate reporting legislation. Separately, Duke researchers led by Betsy Albright, the Dan and Bunny Gabel associate professor of the practice of environmental ethics and sustainable environmental management, are working on measuring endowment emissions impact using artificial intelligence, independent of ACIR.
On transparency, the committee described balancing ethical concerns with risk-adjusted returns as an "alignment" rather than a "trade-off." DUMAC's fiscal year 2026 return brought total holdings to a record $14.3 billion. Rasiel stated that "it's simply not possible for DUMAC to make many of its investments public," noting that only $1.1 billion of the endowment is held in public assets. She said that when endowments began investing in hedge funds, private equity and venture capital roughly 50 years ago, legal agreements significantly curtailed transparency. Attendees were directed to ACIR's response to a previous endowment transparency proposal for further details.
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