After a long and successful career in financial services, Kevin Shannon was ready to make a difference in the world. As managing director and chief financial officer of Harvard Management Company (HMC), Shannon is responsible for the University’s Trusts and Gifts group, a team of financial professionals who work with planned giving professionals at Harvard to help donors create customized strategies for fulfilling their wishes, while also furthering Harvard’s mission to serve humanity through knowledge. Here, Shannon answers some questions about his experience with HMC.
What did you do prior to joining HMC and what drew you here?
I spent my entire career prior to HMC in the financial services industry in New York City, starting at KPMG in 1977 and moving on nine years later to Lehman Brothers. In late 2009, I was ready to transition to government service at one of the regulatory agencies, and had interviewed with the Obama administration’s transition team when I got “the call” to come to Boston from HMC’s chief operating officer, Bob Ettl. Similar to what I was looking to do in Washington, D.C.—cap off a fine career by engaging in a worthy mission—my initial thought was that I would stay in Boston for a maximum of five years and then return to New York. I joined HMC in September 2009 as chief financial officer, overseeing all financial reporting and tax reporting, as well as securities operations, and in December 2016 I assumed responsibility for the University’s Trusts and Gifts platform. I now consider myself a full-time Boston resident and enjoy both my position at HMC and the city of Boston, so a return to New York is just not in the cards!
Since you began overseeing the Trusts and Gifts group, what have you learned? What, if anything, has surprised you about the group?
Harvard is unique among its peers in that it established an internal group of financial professionals at HMC to interact with the University’s planned giving professionals and facilitate customized strategies for donors. The group manages approximately $1.4 billion of assets, most of which will benefit donors during their lifetime and then be passed on to the University to fulfill its mission as well as the donor’s wishes.
I have known the Trusts and Gifts team as colleagues for many years, so it’s been no surprise to me the talent that resides in the group. The team is led by Pamela Yang, who oversees investment and administration, and Nancy Keller-Go, who oversees special investments and estates. Both Pamela and Nancy are highly skilled professionals and acknowledged experts in their respective fields.
What is it like working with one client at HMC—Harvard?
It is a pleasure to focus 100 percent of our attention on one client and know that we are supporting a noble institution that benefits such a wide swath of humanity. To be directly involved in assisting with the University’s mission is both gratifying and challenging, knowing that our success will directly affect research and development budgets in both the sciences and humanities that benefit so many people now and into the future.
How, if at all, will the Trusts and Gifts group be affected by the changes at HMC?
When “Narv” Narvekar joined HMC as CEO in 2016, he shifted the company’s priorities to create the necessary organizational and investment culture that will position the endowment for better future performance. This included establishing a generalist investment model, in which all members of the investment team take ownership of the entire portfolio; recruiting new senior investment team members; spinning off various internal platforms; rebuilding our investment processes and analytics; creating a new risk allocation framework; generating meaningful liquidity; and designing our new compensation framework.
There are no changes to the function of the Trusts and Gifts group, and we continue to be focused on the needs of donors and creating operational efficiencies within our team. We think having the group as part of HMC is important to its success and why the University outpaces its peers in this area.
What is the scope of work done by the Trusts and Gifts group?
The dedication of the Trusts and Gifts team to the University is unsurpassed. On an annual basis, we will monetize approximately $200 million in securities gifts, account for almost 1,000 separately managed trusts, and perform tax reporting on 900 separate legal entities. All of this work is done internally and with an emphasis on being responsive to our donors. In addition, we will settle hundreds of estates and work on special investments and complex donations.
How do you spend your time outside of work?
As permanent transplants from New York City, my wife and I both enjoy history and spend a fair amount of time at the University’s museums, as well as Boston’s museums and historical sites. We also love international travel and exploration, and have three grown kids who love to travel with us and visit the New England area.
Contact University Planned Giving to learn more about supporting University programs.