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Alternative Bets, Global Stocks Hit College Endowments Hard, Real Estate Among Only Bright Spots


U.S. college endowments took a 1.9% average loss last year, pushed down by alternative investments and global stocks despite real estate’s strong performance.

That is the biggest loss for endowments since 2009, according to an industry survey from the National Association of College and University Business Officers and Commonfund, Bloomberg reports. Investments in non-U.S. equities, natural resources and commodities all fell over 7%, helping push the 10-year average return to 5%, well below the 7.4% expected median.

Real estate was the strongest asset class, gaining  7.1% and helping prevent endowments from taking even bigger losses. [Bloomberg]