(January, 7, 2010) – A new study shows a sharp drop – mitigated by a slight late-year rebound – in university endowments in fiscal 2009, ending June 30.
According to the survey, the average endowment loss was 19% in fiscal 2009. The preliminary 10-year average net return is 4.2%, according to data from the survey by the National Association College and University Business Officers (NACUBO) and the Commonfund Institute.
As for asset allocation: for the year ended June 30, colleges and universities invested:
- 51% of their portfolios in alternative investments,
- 19% in domestic equities,
- 13% in fixed income,
- 12% in international equities, and
- 5% in cash or other short-term securities
Preliminary findings are based on responses from 504 colleges and universities, their supporting foundations, and community colleges. Final results, which will also specify the size of endowments and the types of institutions (public, private and foundations), will be available January 27 at the NACUBO Endowment Management Forum in New York City. More than 800 institutions are expected to participate.
To contact the <em>aiCIO</em> editor of this story: Kristopher McDaniel at <a href='mailto:kmcdaniel@assetinternational.com'>kmcdaniel@assetinternational.com</a>