During the last fiscal year, universities had the strongest endowment returns in 35 years. But what eventually increases and a new report on fiscal year 2022 shows a recession for endowments throughout the sector compared to last year.

The average yield before the rates was 27 percent in fiscal year 2021, according to the data of the Wilshire Trust Universe comparison service. But the most recent numbers indicate that university endowments fell into a median 10.2 percent before rates in the 12 months prior to June 2022, according to data published on Tuesday by Wilshire and Bloomberg first reported for the first time. However, universities with larger endowments of more than $ 500 million had better results.

I slip the numbers

The fall for fiscal year 2022 was dramatic. Wilshire data show that US university endowments suffered their greatest loss since 2009 when returns fell by 17.6 percent. But if the news sounds negative, not everything is bad. The highest ED experienced strong returns compared to other sectors.

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  • Postdocs within the U California system alleges bully The endowments actually did it quite well, "said Mike Rush, Wilshire's senior vice president.

    That is especially true for larger institutions with more diverse investment strategies.

    "Endities, in particular, the largest diversify beyond the actions and capital bonds, which is what helped them in a relative sense. Their alternative portfolios have decreased a bit this year, but anywhere near what the US capital market. "Rush said.

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    The change in yields seems to be largely the product of market volatility. And even in the midst of a fiscal year difficult for weak yields, university endowments still exceed traditional investment portfolios of 60/40 where 60 percent of the assignments go to the actions and the other 40 to the bonds.

    "The second quarter of 2022 was historic, but for all the wrong reasons. If you look back 50 years, you will have difficulty finding another quarter where global actions decreased by two digits and the bonds of degree of degree of degree Investment fell five percent, "Jason Schwarz, president of Wilshire, said in a company press release. "All types of plans were able to overcome a traditional 60/40 portfolio, particularly larger plans with higher assignments to alternative investments."

    Although Wilshire launched its data on Tuesday, providing within higher education with a partial data set, most universities will not publish endowment details until autumn, according to statements by numerous institutions contacted By Inside Higher ed. Andrew Delbanco appointed Jefferson Professor 2022

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  • H3> Taking a long view

    while fiscal year 2021 was active and fiscal year 2022 was inactive, the change will probably not matter much in the long term, explained Jessica Wood , leader of the sector for higher education in Global S&P. University investment strategies, she explained, are long -term plans that are not formed by a good or bad year.

    "Schools do not establish their budgets based on one year of investment returns, establish a spending rate of the endowment based on the performance of the endowment for a longer period of time," he explained Wood.

    Rush offered a similar thought by having a long -term vision, pointing out that the returns had more to do with the investment challenges than the endowment strategies, which means that universities should not & RSQ# 39uo; T on correction.

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    "It wasn't a


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