14
President's Message
discretionary investment manager of a specialized unit within Vanguard Institutional Advisory Services that focuses on non-profit organizations and foundations, with the objective of increasing investment returns with professional oversight and risk management. The College and Foundation formed an Investment Committee and adopted an investment policy to ensure that the investments are managed consistently with short-term and long-term organizational financial goals. In July 2019, the College and Foundation liquidated their remaining certificates of deposit and transitioned investment of approximately $2.4 million in reserves to Vanguard funds. While these investments generated returns of approximately $93,000 in 2019, the market disruption since that time has resulted in net losses of approximately 2.4% since inception. While this level of fluctuation is not inconsistent with the long-term investment horizon of the quasi-endowment funds, the Investment Committee is closely monitoring the situation and working with Vanguard to assess the implications of market developments.
I will close with thoughts on the current environment in the wake of the global pandemic. A group of former presidents of the American Bankruptcy Institute gathered by Zoom recently to celebrate the retirement of long-time executive director Sam Gerdano. We talked about the isolation – both personal and professional – that has resulted from COVID-19, and the hurdles that professional associations may face as we adapt to the new normal. The bankruptcy and restructuring profession, unlike any other I have seen in the legal and financial worlds, is founded on a spirit of collaboration and collegiality among its professionals and participants. The College promotes that spirit through opportunities for Fellows to participate in educational forums; social events and ceremonies to honor the achievements of our peers; and the many committee activities focused on enhancing professionalism and efficacy of the bankruptcy system, preserving its heritage and helping the less fortunate. While the mechanisms for some of these activities may change in the short term, and perhaps even the long term, I know that spirit of collaboration and collegiality will be the foundation for the College not only to endure, but to be a source of strength for the profession and those we serve.
Bankruptcy and restructuring will be essential tools to meet the unprecedented economic challenges arising from this health crisis; the College and its Fellows will rise to meet those challenges. Further, the role of the College and the Foundation as the single largest financial supporter of pro bono consumer bankruptcy services in the United States will be ever more critical to those who are most in need of assistance during these difficult times. Thank you to our Fellows for answering the call, in so many ways, and I look forward to the opportunity to connect both in person and other ways in the time to come.