Sun, Apr 20, 2014
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Educational endowments earned investment returns averaging -0.3% in FY2012, down sharply from 19.2% in FY2011

Friday, February 08, 2013

Bailey McCann, Opalesque New York: Educational endowments took a hit to their returns over 2012. Data gathered from 831 U.S. colleges and universities for the 2012 NACUBO-Commonfund Study of Endowments® (NCSE) show that these institutions’ endowments returned an average of -0.3%(net of fees) for the 2012 fiscal year (July 1, 2011 – June 30, 2012)—a steep decline from the FY2011 average return of 19.2%. However, over the longer term, ten-year returns for FY2012 were 6.2% compared with 5.6% in FY2011, suggesting that long-term performance for many institutions continues to improve.

The data are broken down into six categories according to size of endowment, ranging from institutions with endowment assets under $25m to those with assets in excess of $1bn. These large endowments produced the highest FY2012 return, an average of 0.8%. The other categories with positive returns were endowments with assets between $501m and $1bn, which reported an average return of 0.4%, and endowments with assets under $25m, which reported an average return of 0.3%. All three of the mid-sized cohorts reported negative returns, the lowest being-1.0 percent among institutions with assets between $51 and $100m. Institutions with assets between $101 and $500m returned -0.7%, while those with assets between $25 and $50m returned -0.5%.

This year’s data show that institutions’ trailing three-year returns averaged 10.2%; ......................

To view our full article Click here

Banner
Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing
  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Opalesque Exclusive: Classic Auto Funds Limited (CAF) launches several car investing funds[more]

    Bailey McCann, Opalesque New York: A new trend in alternative alternatives is emerging - car appreciation funds. Classic Auto Funds Limited (CAF) is the first to market with several funds that make super elite luxury cars into real asset investments. As a result of growing overseas demand couple

  2. CTAs could face new challenges in a rising rates environment[more]

    Bailey McCann, Opalesque New York: CTAs have taken a beating performance wise lately, and asset flows reports show that investors aren't sticking around to see how the movie ends. Now, a new white paper from Roy Niederhoffer and Coen Weddepohl notes that as interest rates start to tick back u

  3. Investing – Big hedge funds bought Puerto Rico's junk bonds, Fidelity explores new trading venue amid flash trade concerns, Crisis-era Greek bonds reward early buyers with big effective returns, Cargill unit discloses stake in Freddie preferred[more]

    Big hedge funds bought Puerto Rico's junk bonds From Reuters.com: Several large hedge funds doubled down on Puerto Rico in last month's giant bond sale despite the U.S. territory's financial struggles, the Wall Street Journal reported, citing confidential documents reviewed by the newspa

  4. Opalesque Exclusive: Hedge fund replicators evolve[more]

    Bailey McCann, Opalesque New York: Hedge fund replicators as a group of products tend to get a bad rap from hedge fund managers who suggest that the best a replicator can offer is dynamic beta capture. A

  5. Commodities – Popular value fund manager David Iben bets on Russia, gold,[more]

    From Reuters.com: With large bets on Russia and North American gold miners, one of the best performing stock pickers in the wake of the 2008 financial crisis is back with a new fund that reflects his deep aversion to following the crowd. In the Kopernik Global All-Cap Fund, David Iben is follo