Salient to Investors:
Commonfund and the NACUBO said US university endowments lost on average 0.3 percent in the year ended June 30 after gaining 19.2 percent a year earlier. Over a third of the schools reported receiving less in donations than a year earlier. Harvard’s endowment fell 4.1 percent, Yale’s less than 1 percent.
On average, endowments allocated 16 percent of their portfolios to international equities, increased private equity, cut hedge funds. The annual average return for endowments over 10 years was 6.2 percent.
Verne Sedlacek at Commonfund said universities are failing to generate returns sufficient to cover inflation, fees and transfers from their endowments to pay for operating costs.
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