Higher Education Price Index (HEPI) Survey |
Thank you for participating in our survey. Your input is invaluable as we conduct a periodic assessment of the underlying HEPI methodology.
Why HEPI?
When calculating return targets for an endowment portfolio, a conventional piece of the equation is often the Consumer Price Index (CPI). CPI +5% is the common short-hand formula for institutions to achieve intergenerational equity, focusing on growing the endowment and maintaining purchasing power. But although CPI +5% is used widely, we believe HEPI can better capture the expense structure for colleges and universities. The Higher Education Price Index (HEPI), calculated since 1961, is an inflation index designed specifically for higher education and may be a more accurate indicator for colleges and universities than CPI.
Why HEPI?
When calculating return targets for an endowment portfolio, a conventional piece of the equation is often the Consumer Price Index (CPI). CPI +5% is the common short-hand formula for institutions to achieve intergenerational equity, focusing on growing the endowment and maintaining purchasing power. But although CPI +5% is used widely, we believe HEPI can better capture the expense structure for colleges and universities. The Higher Education Price Index (HEPI), calculated since 1961, is an inflation index designed specifically for higher education and may be a more accurate indicator for colleges and universities than CPI.