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Over the same period, the average endowment per student, adjusted for inflation, increased by 93.5percentt.
Five-year averages suggest the magnitude of the gap: The average endowment had annualized five-year returns of 5.9percentt.
AND where the average endowment has 54 percent invested in American stocks and 24percentt in bonds, larger endowments put far less money there -- an average of 43percent and 188 percent, respectively.
As a result, the average endowment fell to $321.5 million last year, down more than 5percentt from the 2002 fiscal year and more than 23percentt since 2000, statistics from the business officers show.
Yet over the last 10 years, the average endowment earned a 4.6percentt annualized return, lower than the 5.3 percent return for a low-cost 60-40 stock-bond index fund portfolio and 5.4percentt for a 70-30 mix.
Most colleges and universities have a policy of spending 4 percent to 5 percent of their average endowment value over the previous three years, so the sharp rises in endowment values in 2010 and 2011 increased the amount paid out last year.
Similar(47)
For the past decade, Princeton and Columbia are tied for the highest average annual endowment return.
Presumably a line of zeroes is more in keeping with the average Prudential endowment statement these days.
Over the three- and five-year periods that ended in mid-2011, he says, a simple balanced index fund portfolio, 60 percent in stocks and 40 percent in bonds, beat the average university endowment.
As of June 1999, the end of the most recent fiscal year for which complete figures are available, only 8percentt of the average college endowment was invested in alternative assets like real estate, hedge funds, oil and gas partnerships, distressed securities, arbitrage opportunities and private equity, which includes venture capital and leveraged buyouts.
The average land endowment per person is 8.22 mu12 per person, as compared to 11.55 for non-participating households.
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