The USD Foundation had a return of 15.9 percent (net of fees) as compared to an average 11.7 percent among all participants. Those institutions’ trailing three-year returns averaged 10.2 percent as compared to the USDF’s 13.8 percent; trailing five-year returns averaged 4.0 percent as compared to USDF’s 7.9 percent; and trailing 10-year returns averaged 7.1 percent as compared to USDF’s 9.1 percent.
Steve Brown, USD Foundation president and chief executive officer, explains the University’s success. “The volunteer leadership of our investment committee is the reason we’ve outpaced our national peers.”
The annual NCSE analyzes return data and a broad range of related information gathered from private and public U.S. colleges and universities and institution-related support foundations. The size and scope of the study makes it the most comprehensive annual report on the investment management and governance practices and policies of institutions of higher education across the U.S.
The 835 institutions participating in this year’s study represented $447.2 billion in endowment assets as of June 30, 2013. The USD Foundation endowment is listed 300th in the national ranking size of the reporting institutions.
The FY 2013 effective spending rate for scholarships and programs by participating institutions was 4.4 percent as compared to 4.2 percent in FY 2012. The Foundation’s effective spending rate mirrored that at 4 percent.
While some institutions don’t emphasize building their endowments, Brown says the Foundation’s policies balance current distributions — about one-quarter of students received scholarships for the 2012-13 academic year — with future needs. “In the short term we strive to meet the funding challenges of the university while adhering to a principle of building intergenerational equity for future generations of students.”
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For the complete report, click here: http://www.nacubo.org/Research/Research_News/College_and_university_endowments_returned_117_percent_in_FY13.html