One important area for periodic review for all investors is the overall cost incurred in investment management. At first glance, costs associated with endowment management for Oxford and Cambridge institutions appear to be broadly aligned with that of industry globally, with Oxford reporting greater efficiency in managing such expenditures. Average costs, however, do not reflect asset allocation decisions, the nature of strategies implemented, the level of risk, Sharpe (i.e., reward-to-risk) ratios achieved, or other services delivered to the client. Taking into account the more traditional approaches to investing within Oxford and Cambridge institutions, a higher level of pooling and/or indexing could reduce costs further; or a higher level of investment service could be secured at the same expense.
Keywords: Oxford, Cambridge, investment management costs, asset allocation