Bailey McCann, Opalesque New York: Independent school endowments have posted record returns, according to the latest data from Commonfund. Institutions participating in the Commonfund Benchmarks Study of Independent Schools for the 2021 fiscal year reported an average 25.8 percent return on their endowment assets, a strong upward move compared with last fiscal year's 2.8 percent return. 2021's tally is also the highest since 2005.
Two hundred fifteen independent schools representing some $13.8 billion in combined endowment assets provided data for the study.
Independent schools are private, nonprofit institutions enrolling students from kindergarten through 12th grade. In the U.S., approximately 10 percent of the student population attend an independent school, according to the National Association of Independent Schools (NAIS).
The performance of school endowments was driven largely by equities, which accounted for 30%+ of portfolios. Schools that had a high allocation to alternatives also benefitted. Alternative asset classes - led by venture capital and private equity - outperformed.
Schools are also making a bigger effort to include ESG in their portfolios. 10% of schools in the survey said they were working to include more ESG investments in their portfolios - up from 4% in 2020. A further 8% were considering screening strategies to keep out investments that don't align with their mandates, up from 6%.
Double-digit increases were reporte...................... To view our full article Click here
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