In a time of continuing financial uncertainty, a new survey by the Chronicle of Philanthropy brings some measure of reassurance as early reports of fiscal year 2011 endowment performances point to a second straight year of growth. Although college and university endowments have not fully recovered from the historic losses of the Great Recession, the16 institutions that responded to the Chronicle’s survey had earned a median 15-percent investment gain so far in FY 2011. Among the institutions surveyed, the University of Texas made the highest year-to-date investment return, with 18.5 percent on its $16.4 billion endowment.
Despite these steady gains, many endowment managers are taking protective measures against inflation and another economic downturn. The survey found that endowment-management companies have cut their assets in stock to 43 percent in 2010, as compared to 55 percent in 2006. Universities have also followed the trend by allocating only 31 percent of their funds to stocks.
It is important to note that most private colleges have modest endowments. Only 41 private universities have endowments worth at least $1 billion. Among the remaining 1,559 private colleges, the median endowment is just $18 million.
Media coverage: Chronicle of Higher Education
By Joyce Kim
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