Kamehameha Schools' endowment plunges by 18%

Those of us with 401(k) accounts can relate: The global economic recession has slashed the value of Kamehameha Schools' endowment by 18 percent, or $1.7 billion.

The state's largest private land trust saw its portfolio’s value slashed to $7.7 billion from July to November, the first four months of its 2009 fiscal year, which began on July 1. At the end of the 2008 fiscal year, it was $9.4 billion, according to the Schools’ education and financial summary released Jan. 9.

The trust attributed the losses to “the effects of the dramatic fluctuations triggered by the U.S. and global financial challenges that unfolded in the last half of the year." Unless the market recovers in the next six months, a spokesman said it expects this year's results to fall significantly.

CEO Dee Jay Mailer told the media that the trust would preserve its campus, early education and community educational programs for the benefit of Native Hawaiians despite the erosion of the endowment. “This is a time for prudence and for focus on harvesting the efforts of our educational plans,” she said in a news release. “As responsible stewards of Pauahi’s resources, we will do what is needed to sustain effective services to our keiki and our communities for as long as it takes to bring us through the turmoil.”