Endowment returns flat for universities

After two strong years, college and university endowments lost ground slightly during the fiscal year ending last 30 June, with their investments declining 0.3% on average, according to a new study, writes Justin Pope for Bloomberg Businessweek.

US stock markets have risen around 10% since then, and many global markets are also higher, so recent performance is likely stronger. Endowments are the assets owned and invested by universities, which typically spend about 4% to 5% of their values annually to support things like financial aid, faculty salaries and other expenses – and then try to replenish the payouts through fundraising and investment returns.

The survey of 831 institutions, conducted by NACUBO, a university business officers group, and investment adviser Commonfund, found that at the average university the endowment kicks in about 9% of the operating budget. But the figure is higher at richer universities, averaging more than 16% at institutions with endowments of at least $1 billion.
Full report on the Bloomberg Businessweek site