Colleges and universities spend more of their endowments during a fiscal year that ended in the middle of the pandemic despite registering lower yields than the average, in accordance with the latest annual study of the National Affairs Association of university business.

The study, published today, provides a detailed appearance of the investment and expenditure of university endowments during fiscal year 2020, which began on July 1, 2019 and ended on June 30, 2020. The Association surveyed 705 institutions for this year. study. Together they represent a combined $ 637.7 billion in envelope assets. The institutions surveyed reported an average size of the cost of $ 905 million, an increase of 1.6 percent of the 2019 fiscal year. The size of the median staff was only $ 164.6 million in fiscal year 2020, which indicates that A small amount of very large endowments biased the general average upwards. Almost half of the provisions of the University and the University surveyed are less than $ 140 million.

The endowment of college returns an average of 1.8 percent in fiscal year 2020. The average performance rate was considerably less than 5.3 percent last year and fall considerably below the historic . Destination rate of 7.5 percent.

was the lowest average annual yield since 2016. That year, the yield yields averaged -1.9 percent, which means that 2020 returns still exceeded recent minimums.

things could have been worse. When America surveyed the institutions on their endowments as the markets staggered in March and April last year, the average endowment was more than 20 percent, according to Ken REDD, Upper Director of Research and Policy Analysis in Nacubo.

Even with the yields of the subparation of 2020 prosecutors, colleges and universities continue to work at an average yield rate of 7.5 percent in 10 years, according to the study. But the averages in other time frameworks lose the historical objective: The annualized five-year yields occurred by 5.1 percent, the annualized 15-year returns were 6.2 percent and the annualized 20-year returns were 5.5 by hundred.

Private University and university endowments performed a little better than public institutions in fiscal year 2020. Private institutions saw an average of 2 percent last year, while public institutions averaged 1 , 5 percent. To decompose the different agreements, public institutions are used to invest, the public university, college and system endowments saw an average return rate of 1.4 percent, the foundations related to the institution averaged 1.7 by Hundred and combined endowment / foundation averaged 1.2 percent.

The institutions surveyed passed a collective of $ 23.3 billion of its endowments during fiscal year 2020. Seven out of 10 institutions increased its spending last year, with an average increase in expenses of $ 3.3 million in past year.

Allows between $ 51 million and $ 100 million averaged a spending rate of 5 percent in fiscal year 2020, the highest expenditure rate of any endowment size. The provisions below $ 25 million averaged a cost of spending of 4.1 percent, and the endowments greater than $ 1 billion averaged an average of 4.5 percent.

The greatest expenses of the allocation - 48 percent, paid by financial aid to students. Another 17 percent financed academics, which includes teaching, tutoring and related support, according to the study.

After an initial panic in the spring, the US stock market UU recovered its losses at the end. From fiscal year 2020. The endowments were recovered less than the main rates of actions mainly because they are reversed in a wide range of asset classes, from bonds and real estate to private capital and venture capital.

"Not all those markets met as strongly as the public markets of the United States," REDD said

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