The National Association of College and University Business Officers published their data a couple of weeks ago.
Data gathered from 774 U.S. colleges, universities, and affiliated foundations for the 2019 NACUBO-TIAA Study of Endowments® (NTSE) show that participating institutions’ endowments returned an average of 5.3 percent (net of fees) for the 2019 fiscal year (July 1, 2018 – June 30, 2019).
Despite posting a lower return than FY18’s one-year average of 8.2 percent, the average 10-year endowment return reached 8.4 percent, surpassing institutions’ long-term average return objective of 7 percent for the first time in a decade. This reflects the strong stock market recovery since the 2008 financial crisis as well as solid management practices.
You can find the data here.
It’s good to remember what Charles D. Ellis wrote about endowments in David Swensen’s book Pioneering Portfolio Management.
Most of the Western world’s great educational and cultural institutions – universities, colleges, libraries, museums, and foundations – depend, to varying degrees, on their endowments and the spendable funds they produce. Usually the difference between “mediocre” and “excellent” is that margin of assured fiscal strength that only an endowment can produce. In this way, our society depends on endowments for that vital margin of fiscal strength that facilitates institutional excellence.
You can also read more about the endowment study here.
Post by Marcelino Pantoja