Many post-secondary institutions across Canada invest portions of their revenue, which include student tuition payments, as a way to make money. Post-secondary institutions commonly invest in stocks, bonds, and real estate, according to Maciek Kon, director of quantitative analysis and strategic research at the Investment Management Trust of the University of British Columbia.
Carleton projected that their budgeted interest income, generated from investments, endowments, and interest, would make up two per cent of the university’s total revenue this year. Two per cent amounts to $8.25 million out of $505 million in total revenue.
Universities should be more transparent about how and where student money is invested and which organizations and industries they are investing in. This information is relevant to students because students might not agree with their money being invested into certain companies.
Some Canadian universities invest in the fossil fuel industry, for instance. Students who believe in divesting in the fossil fuel industry due to environmental concerns may consider this investment decision enough of a reason to choose another university.
At this point, detailed information about where student money is invested at Carleton is not available to students. For the sake of transparency, it is important for Carleton and other Canadian universities to ensure that students are aware of the industries they invest student money in.
