Guidebook for Advancing University Asset Management

Strengthening the financial foundation is considered necessary for universities to continue providing high-quality education and research over the medium to long term. Private universities, in particular, are considered to urgently need to diversify their funding sources through planned asset management, in view of factors including the anticipated decline in revenues accompanying a future decrease in the number of students entering university.

In the past, many universities prioritized safety by focusing their investments on deposits and bonds, but under an inflationary environment, the real value of assets is expected to decline, making it difficult to secure sufficient returns.

Asset management by corporations operating universities through the use of financial capital markets is considered to contribute not only to strengthening universities’ operational and financial foundations, but also to revitalizing capital markets and promoting innovation in industry and technology.

The Ministry of Education, Culture, Sports, Science and Technology and the Ministry of Economy, Trade and Industry jointly held a study group and prepared the guidebook together with its report, in order to raise the overall level of asset management by universities.

After clarifying the current state and challenges of university asset management, the guidebook systematically and concretely presents the basic matters and points to consider when starting or enhancing asset management. It is expected to contribute to advancing and enhancing asset management suited to the circumstances of each university, including investment in risk-bearing assets such as equities.