U.S. educational endowments returned an aggregate -19% net of fees for the year ended June 30, according to preliminary results of a study by the Commonfund Institute and the National Association of College and University Business Officers.
John S. Griswold, executive director of the Commonfund Institute, said performance has improved from the July 2008-November 2008 period, when returns were an aggregate -22.5%.
He said the declines experienced during the financial crisis are “worse than we’ve seen in some time,” but added that declining enrollment and an increasing reliance on financial aid likely worsened the problem.
“(Schools) still have budgeting for this coming year, and that is a real problem,” he said.
The average asset allocation as of June 30 was: 51% alternative strategies; 19% domestic equities; 13% fixed income; 12% international equities; and 5% short-term securities/cash/other.
The final version of the study of 504 educational institutions is set to be released Jan. 27.
