Structural and Investment Trends of Private Universities in Japan

From the Viewpoint of the Concept of Fiduciary Duty

Abstract

　 In this paper, following the enactment of the US trust law, which is centered on the concept of fiduciary duty, and which has formed the fundamental framework of US university investment, I discuss the characteristics of investment in private universities in Japan and investment trends in recent years.

　Originally, private universities in Japan are fiduciary, but their investments display characteristics deviating from Prudent Man rules and Prudent Investor rules. In other words, their characteristics are a lack of portfolio management, single-year oriented investment, in-house investment and quasi endowment.

　However, in recent years, there is a trend among private universities to fulfill their responsibility as a fiduciary, portfolio management, outsourced investment, and investment consistent with their educational mission.