With an average return of -1.9 percent net of fees, higher-education endowments in fiscal 2016 had their worst year since the 2008-2009 recession. At the same time, college and university endowment spending increased to support financial aid, research and other programs, according to the 2016 NACUBO-Commonfund Study of Endowments. Nearly three-quarters of study participants increased endowment spending to support campus operations, with a median increase of 8.1 percent.
"These substantial increases in spending from endowments demonstrate the deep commitment colleges and universities have to student access and success," said NACUBO President and CEO John Walda. "Nonetheless, this year's results are cause for concern. Continued below-average investment returns will undoubtedly make it much more difficult for colleges and universities to support their missions in the future."
National Association of College and University Business Officers (01/31/17)
See also the NBOA Commonfund Benchmarks Study of independent school endowments.
Listen to the latest episode of the Net Assets podcast.
