University Endowment Portfolio Managers Increase Alternatives Allocation
A preliminary report from NACUBO (National Association of College and University Business Officers) shows that university endowment porfolio managers increased their allocation to alternative investments in 2014. The preliminary study included data from over 400 institutions showed that allocation to alternative investments rose to 58% in the past year, a five point increase from the previous year. Alternative asset categories include marketable alternatives, private equity, venture capital, natural resources, distressed debt and private equity real estate).
The average endowment returned 15.8% during the fiscal year (ended June 30, 2014), and all of the major component asset classes showed a positive return for the period. The results of the entire study will be released in January.
