CHICAGO - The $112 million Illinois Institute of Technology endowment fund will double in size as it expects to receive more than $100 million of what might be $240 million in direct and matching pledges.
The Galvin and Pritzker families pledge to match dollar for dollar up to $120 million in private donations.
The endowment's investment committee will review after the end of the fourth quarter its asset allocation and the mix of styles of its equity managers, said Joel Asprooth, vice president-business and finance.
Some change is possible, he said, "but I don't think it would be driven by the increase to the endowment. I think it will be driven by portfolio needs and diversification. We don't expect the additions to the endowment alone will cause a change in investment strategy." A decision could be made in February, he said.
The fund has a 70% equities and 30% fixed-income allocation policy, although the actual mix is about 73% equities.
He declined to speculate on whether the committee will consider other asset classes.
Stratford Advisory Group Inc., Chicago, will assist in the review.
"Details on the flow of the money (to the endowment) have not been established yet," Mr. Asprooth said.
The first flow would start sometime in 1997. Much of the huge pledge will be used for capital projects and other expenses and won't affect the endowment. He estimated the endowment could receive about $120 million, or half of the expected contributions.
The pledge is over a five-year period.
Of the fund's five managers, three handle domestic equities: Neuberger & Berman, New York, runs the largest equity piece of the endowment, some 22% of its assets, in large-capitalization value stocks; Jennison Associates Capital Corp., New York, runs large-cap growth; William Blair & Co., Chicago, runs growth in small, medium, and large cap.
The endowment's only non-domestic investment is through the international equity mutual fund of Harbor Capital Advisors, Toledo, Ohio. Harris Investment Management Inc., Chicago, runs the endowment's entire fixed-income allocation.
Mr. Asprooth declined to break out the amount of the assignments for all of the managers.
