University endowment returns fall with equity markets

US public-university endowments, including the country’s second-wealthiest at the University of Texas, are reporting fiscal 2015 returns that fail to meet the annual industry standard, write Lauren Streib and Michael McDonald for Bloomberg.

The University of Texas Investment Management Company, with US$26.6 billion in endowment assets, said it had a weighted 3.5% average return for its two funds for the year ended 30 June, Chief Executive Officer Bruce Zimmerman said in an e-mail. The Austin-based company invests funds for Texas A&M University and the University of Texas.

Ohio State University, University of Florida Investment Corporation and Indiana University Foundation all have reported this month that returns for the period were less than 5%. Endowments aim to achieve about a 7.5% return to protect against inflation and provide for university support expenses.
Full report on the Bloomberg site