Research On Investment And Revenue Of University Education Foundation

University education foundation aims to promote the development of education, and to provide financial support for college campus construction, personnel training and scientific research.For university education foundations,the revenue usually come form community donations, government grants and investment income.Because of the characteristic of non-public foundations, university education foundation cannot carry out fund-raising for the public.So every university education foundation has to face the problem that how to get a steady income. "Foundation Management Regulations"(hereinafter referred to as the "Regulations") allows the foundations can carry out investment activities in accordance with the "lawful, safe and effective" principle.This paper studies on the investment behavior of university education foundations, and aims to give suggestions on improving capital efficiency for university education foundations.Firstly, the paper discusses the necessity and feasibility of participating in investment activities for university education foundations.Considering "the three principles of investment" in the general investment activities and "Regulations",this paper concludes the investment principles for university education foundations, and sums up investment risks.Secondly, according to the current development of Chinese financial markets, this paper analyses main investment tools and the theory of investment revenue for university education foundations. Again, this article compares the domestic and foreign investment policies and regulations for the foundation, analyses the investment management of harvard university education foundation and tries to learn the successful investment experience.Finally, this paper introduces Markowitz portfolio model, building the investment model which added the variable factors for the university education foundation.Taking the top 5 university education foundations according the number of revenue in Chinese financial markets in 2013 for example,the paper tries to explore whether there is room to improve investment efficiency through empirical analysis.The results show that whether or not to participate in investment activity, geographical location and its level of institution has a significant impact on its asset size growth rate, and the above three factors have negative effects on the pace of development. Probably due to the low efficiency of the asset portfolio, university education foundations which participating investment activities grow slower than others.This paper answers the question that how to make financial operation more efficiency from the views of foundations and government. Firstly, with the scientific investment theory,university education foundations should allocate portfolio assets rationally; secondly, generating scale economy of investments through making full use of donated funds.From the view of government, referring to the "National Social Security Fund Investment ManagementMeasures","Regulations"should be more meticulous,for example,"Regulations" regulates the proportion of asset allocation portfolio and guides investment behavior;secondly,the investment revenue should be given tax incentives; thirdly,the financial market system should be improved, to reduce the risk of the financial system, and create a financial more suitable environment for investment.