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College endowments had a massive rebound thanks to Trump

Aug 9, 2017, 19:24 IST

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College endowments had a massive rebound in 2017, thanks to a stock market rally that followed President Trump's surprise win, Bloomberg reported.

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The rebound comes a year after 2016, when endowments experienced their worst year since the recession.

For college endowments with more than $500 million, the median investment gain was 13.3%, and for all endowments the median gain was 11.3%, according to Wilshire Trust Universe Comparison Service, which reports quarterly on endowments. Last year, all endowments lost a median .7%.

The portfolio earnings are a highly competitive venture, and the schools are closely watched, just like competitive Wall Street funds, with schools jockeying to produce the best portfolio results.

Last year, in the midst of weak returns, Harvard University announced it would lay off half of its staff and outsource management of most of its $35.7 billion assets.

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Its portfolio had been performing poorly since the 2008 economic crisis, and its one-year investment return for fiscal year 2016 was -2.2%.

Wilshire Trust Universe Comparison Service reported investment gains for the entire endowment sector. Most colleges will release their individual endowment performance in September.

Read the full post on Bloomberg »

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