It may be a new year, but the University of Minnesota is still reeling from the impact of a severe snowstorm that caused thousands of students to miss class and caused the university to declare a state of emergency.
It was a huge blow to the university, and its endowment had already suffered an $8.7 billion loss in the 2014-15 academic year.
But the university says it will now be able to save its endowments for the foreseeable future.
Its new investment strategy, which will take effect in October, will allow universities to invest the money in new, high-impact, and long-term research projects.
The university’s first investment in the next five years will be $4 billion, the university said.
The plan also will allow the university and its partners to invest in research into emerging technologies, including artificial intelligence and robotics.
The investment will be made in the form of the new endowment fund, which is expected to raise $1 billion, according to a statement released Tuesday.
Funds will be held in a “new, non-taxable account, called a university-specific, nonresidential investment fund,” the statement said.
The new fund will be “largely exempt from taxation.”
The university says the new fund can be used to invest funds from the endowment and fund-raising efforts, as well as to help pay for future research.
Funds held in the new investment fund will allow for a range of investments, including bonds, certificates of deposit, and real estate, the statement added.
The endowment was hit hard in the storm, as it suffered $1.4 billion in loss of money.