Northwestern CIO Warns of ‘Destructive’ Tax on University Funds

Northwestern University is preparing for a potential tax increase on endowments, a move its chief investment officer labeled as “destructive” for higher education institutions in the US.

Amy Falls, the suburban Chicago university’s CIO, said the tax on its almost $15 billion endowment could be raised to anything between 10% and 14%. While that’s lower than the 15% to 20% range once talked about in Washington circles, it’s still a huge increase from just 1.4% now.

“That’s what I think will happen, and it will be very destructive for universities,” Falls said at a CFA Institute’s conference in ...