When You're Number 3 or Even Number 8, Why Bother. (July 25, 2005)

Cambridge University Vice- Chancellor Alison Richard

 The Institute of Higher Education, Shanghai Jiao Tong University rankings for 2004 placed the University of Cambridge as the world's third best university behind Harvard and Stanford. Oxford was ranked eighth.

    Last year the UK parliament passed legislation that allows its universities to charge students up to £3,000 (A$6,800) per annum "top up fees" in order to generate additional income for the hard pressed British universities. But a certain percentage of the additional income has to go to funding bursaries for students who otherwise would by unable to undertake university studies. One of the outcomes of the legislation is that the Oxbridge universities are undertaking campaigns to raise significant amounts not only to enhance their bursaries but to attract outstanding academics and improve infrastructure.

Cambridge University is to launch an appeal for a record £800m (A$1.8 billion)) so it can provide free places for about a fifth of its undergraduates, and there are suggestions that the £800m is a minimum goal. Cambridge will pay the £3,000-a-year top-up fees as well as annual living expenses of £4,000 for students who could not otherwise afford to attend. UK grants for living costs were abolished in 1997. While Oxford has indicated that it has a similar scheme planned, Cambridge appears to have stolen a march on its rival and Cambridge Vice-Chancellor, Alison Richard, recruited from Yale University two years ago, makes no bones about it, Cambridge intends to attract the best and brightest students.

The university proposes to pay fees and living costs for at least 2,000 undergraduates; 1,000 of the free places to be paid for by using a third of the income to be raised from the £3,000 top-up fee, which will be imposed beginning in October 2006.

The Cambridge appeal is to be launched in the Northern hemisphere autumn as part of the run-up to its 800^th anniversary celebrations in 2009, and while it is looking to its well-heeled alumni, a number of other avenues are being explored to increase its current  £3 billion endowment (£2bm, colleges; £1bm university). Professor Richard has already written to 150,000 Cambridge alumni, "My job, with I hope your support, is to keep Cambridge at the top, offering a unique educational experience that nurtures talent in many different ways and maintaining its place at the forefront of research."

But she has also indicated to London's Financial Times that what might be called more risky investment possibilities are under consideration as the university reforms its financial management in the run-up to the fundraising drive. The FT says, "The moves, which could result in lucrative business for hedge funds, private equity and other 'cutting edge' investment vehicles, have been revealed to the Financial Times by [Cambridge Vice-Chancellor] Alison Richard," and, "Andrew Reid, the university's director of finance, is putting together a board of investment advisers and has been boosting expertise in his department, setting up an in-house investment office to enable the university to investigate opportunities and increase returns in line with those achieved by the more adventurous managers of US university funds."

However, one of the critical matters that has to be resolved is the relationship of the university to its colleges. Too often funding appeals from the university per se and the colleges confound one another. Now according to the FT, Cambridge's 31 colleges have agreed to share information and expertise on fundraising and Prof Richard says the anniversary campaign's goals will embrace what the colleges want to achieve.

And as if to challenge Australia's Minister for Education. Science and Training, Brendan Nelson, Alison Richard says, "We are working as one. The collegiate system is a hallmark of what is distinguished and great about this university - too often people say it's a management nightmare. It's a great glory and the way a great research university is scaled in a human way for undergraduate education."