The Endowment index was down 17% year-to-date as of Tuesday compared to the 14% decline of the S&P 500 index. The index, a product of ETF Model Solutions and NASDAQ OMX, is calculated using mix of equities, bonds and alternatives are designed to mimic the asset allocation of typically more aggressive endowment portfolios. The most recent asset mix is 35.2% equity, 53.2% alternatives, 8% fixed income and 2.6% Liquidity.
The maximum drawdown was reached March 23 when the index fell 29.5% from its most recent high.
The spread of the coronavirus forced universities to close midsemester and return tuition and fees paid by students while still paying to fund operations. The decline in endowment assets is expected to further impact already dire financial situations, particularly for small colleges and universities.
The Endowment index is constructed using the allocations of more than 800 educational institutions with a more than $600 billion in assets.
