Wed, Feb 19, 2020
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

NACUBO-Commonfund study: educational endowments feel long-term return pressure, alts rebound

Friday, January 26, 2018

Bailey McCann, Opalesque New York:

Data gathered from 809 U.S. colleges and universities for the 2017 NACUBO-Commonfund Study of Endowments (NCSE) show that participating institutions' endowments returned an average of 12.2 percent (net of fees) for the 2017 fiscal year (July 1, 2016 - June 30, 2017) compared with -1.9 percent for the 2016 fiscal year and 2.4 percent for fiscal 2015. Despite this year's improved return, the mission-critical 10-year average annual return fell to 4.6 percent from last year's 5.0 percent, as FY2007's strong 17.2 percent return dropped out of the trailing 10-year average.

Institutions participating in the Study reported increasing their average effective spending rate to 4.4 percent in FY2017 from 4.3 percent a year ago; the increase was led by institutions with endowment assets over $1 billion, which raised their effective spending rate to 4.8 percent from last year's 4.4 percent. Among all institutions increasing their dollar spending, the median increase was 6.5 percent, well above the inflation rate.

" The goal of achieving real returns to cover spending has been a daunting task for higher education for more than a decade-and we don't expect the challenge to get any easier," said Catherine M. Keating, President and Chief Executive Officer of Commonfund. "At the same time, with tuition discount rates at historic highs and inflation, as measured by the Commonfund Higher Education Price Index, at its highest level sinc......................

To view our full article Click here

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. Other Voices: Evolution of shrinking hedge fund fees - what do investors and managers need to know?[more]

    By Don Steinbrugge, Founder and CEO, Agecroft Partners (DonSteinbrugge@agecroftpartners.com): Hedge funds fees remain under extreme pressure across the industry. This strong trend is driven by declining return expectations from investors, inc

  2. PE/VC: Venture debt: Is it a loan? Is it equity? Is it an pportunity?, PE, VC investments in India hit all-time high in 2019[more]

    Venture debt: Is it a loan? Is it equity? Is it an pportunity? From Forbes: Venture Capital is usually the default option for fast-growth startups looking for a cash injection, thanks to our willingness to take risks in return for equity, and with no need to pay anything back - at least

  3. PE/VC: No handshakes, no deals: Silicon Valley VCs hit pause on China, US private equity funds swoop on UK for cheap deals[more]

    No handshakes, no deals: Silicon Valley VCs hit pause on China From Nikkei: Venture capital companies in Silicon Valley are not taking any chances when it comes to the coronavirus outbreak. "Due to the Coronavirus, No Handshakes Please. Thank You," reads a sign on the office doors of An

  4. COVID-19: Investors track ships, chase rumours to get edge on COVID-19 risks, Coronavirus risk puts the bull run on pause, China was wise to let markets stumble[more]

    Investors track ships, chase rumours to get edge on COVID-19 risks From Reuters: As investors crunch numbers to determine how the coronavirus will hit China's economy, hedge fund manager Nathaniel Polachek has tied much of his outlook to the fate of a ship anchored near Weihai, China.

  5. Global pensions loading up on alternative investments says study[more]

    Laxman Pai, Opalesque Asia: Global pension funds remain committed to increasing their exposure to private equity, real estate, and other alternatives, says a study. A new report from Willis Towers Watson's Thinking Ahead Institute revealed that the shift to alternative assets continues apace