Returns Increase Significantly in FY04 According to NACUBO Endowment Study

An average 15.1 percent return rate among this year’s participants of the annual NACUBO Endowment Study (NES) helped institutions begin to overcome several years of poor returns. The study results, released to the public earlier this week, show an average 3.8 percent return rate over the past five years--an indication that many institutions are still struggling to make up lost financial ground following the post-1990s stock market bust.

Much of this year’s good news was the result of high returns from stocks in the United States and abroad during the 12-month period ending June 30, 2004. During that same period, the Standard & Poor’s 500 stock index gained 19.1 percent. While the NES shows more institutions are moving into alternative investments such as hedge funds, participants on average maintained a majority of their assets in stocks. 

Record participation from 741 NACUBO members contributed to the most comprehensive NES in the 33-year history of the study. Participants in the study now have full access to results through the NES Web site. The full report on the study will be available to members beginning in mid-February. Advance orders are now being accepted on the NACUBO Web site.

The following selected data tables are available to the public online:

• Table: Listing of Participating Institutions By Total Market Value of Endowments as of FYE 2004
• Table: Average Compounded Nominal Rates of Return Over 1, 3, 5 and 10 Years as of June 30, 2004
• Table: Average Asset Allocation by Asset Class FYE 2004

 For more information on the study and this year's NES results, see the Research section of the NACUBO Web site.