"Moderate increases" in endowments' total asset levels are expected in 2005, according to a Standard & Poor's Ratings Services report released today. The S&P report cited a continued increase in assets through fundraising and investment performance.
Most higher education endowments had positive returns for the most recent fiscal year, and assets of most funds increased over the past fiscal year, which typically ends June 30. The report is based on fiscal year-end 2004 results and uses data from a National Association of College and University Business Officers survey of 741 endowments with a median $72 million in assets as of June 30. The NACUBO survey found the median one-year endowment investment return was 16%. By comparison, the Russell 3000 index returned 20.46% for the year ended June 30.