Most US public Universities have no substantial endowments and most US private Universities have small endowments (less than $10 Mln, generating an income of approximately $300,000 per year). Hence, large endowments only refer to top US universities. To give but one example, Harvard’s endowment is $35,7 Bln at 30th June 2016 and its investment return is $700 Mln (2%).
The study deals with endowments of US universities. More specifically, it explores the performance of Ivy League Universities’ endowments on financial markets (the Ivy League Universities are Harvard, Princeton, Yale, Columbia, Brown, Cornell, Dartmouth, Pennsylvania).
Despite the good performance on stock markets, in 2016, endowments of Ivy League Universities experienced negative returns due to higher investments in other sectors, such as real estate funds
The best performing Universities in terms of endowment (for example Yale) were those less exposed to riskier investments.