The stock market’s impressive performance in recent months has helped college endowments regain much of their growth that was lost since the economy began its nosedive in 2008, according to preliminary results released Wednesday of the most comprehensive study of higher education endowments.
The preliminary study released by the National Association of College and University Business Officers (NACUBO)—Commonfund Study of Endowments revealed that Educational Endowments Earned Investment Returns averaged 11.7 percent in fiscal year 2013, compared to .03 percent in 2012. The study is based on responses from 206 endowments and foundations that responded to detailed surveys from the Commonfund Institute. The research group said more than 200 other institutions have indicated they will file reports with the organization by January 2014, when it plans to issue the final version of its study.
The preliminary results, which measure endowment performance by financial size groups, do not identify institutions by name. But In the 2012 survey issued last spring, the endowment statuses of several Historically Black Colleges and Universities (HBCUs) were listed. Despite this, institute officials noted that generally most HBCUs do not participate in the Commonfund Institute survey.
Of the handful that did this year, which were mostly larger HBCUs with long-established endowments, the survey results confirm anecdotal evidence of a rebound in the making, noted William Jarvis, managing director and head of research at the Commonfund Institute.
Howard University, for example, saw the value of its endowment for fiscal year 2013 rise to $516 million, compared to $460 million for fiscal year 2012. During the nation’s economic recession, the value of Howard’s endowment followed the stock market and hit a low of $380 million in 2008.
“Howard’s endowment has exceeded pre-recession levels,” said Howard University Interim President Wayne A.I. Frederick.
