Elsewhere online
August 03, 2016

Report Sees Fiscal 2016 Losses for College Endowments

College endowments lost about three-quarters of 1 percent on their investments in the year ending June 30, the worst performance since the recession year of 2009, Bloomberg writes, citing new data from financial management and consulting firm Wilshire Associates.

The company’s Wilshire Trust Universe Comparison Service, which reports quarterly on some $3.6 trillion in managed assets, shows a median slide of 0.74 percent for all college and university endowments and a 0.73 percent drop for funds of more than $500 million. Wilshire reported a plus-2.8 percent return for endowments last year and double-digit gains in 2014.

The numbers, which were affected by last August’s stock-market plunge, foreshadow lackluster reports in the fall, when the wealthiest institutions typically disclose endowment gains and losses. Returns “are going to be subpar, perhaps much lower than they have historically experienced,” said Maggie Ralbovsky, a managing director of Wilshire’s consulting business.