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IU Endowment Returns Exceed National Average

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Release Date: 01/7/2005

Investment returns on the endowment managed for Indiana University by the Indiana University Foundation were substantially above the national average in fiscal year 2004. The Commonfund Benchmarks Study, conducted by the Commonfund Institute, reported that endowment returns averaged 14.7 percent nationally. The IU endowment returned 20.9 percent.

The study reported on endowment returns at 707 public and private colleges and universities, independent schools, and private foundations in support of education. 

As was true of other high performers, the endowment managed by the Foundation benefited from the excellent performance of equities in the past year.

"The asset allocation profile is an important part of our investment success,” said Simic. “In particular, the endowment has benefited from the Board’s past decisions to continue to diversify the portfolio, especially our exposure to international equities and to small and midcapitalization stocks."

Reporting institutions expect lower returns in the current fiscal year. The average expected return in fiscal year 2005 is 7.9 percent.

“The Foundation and its Board make longer-term projections,” said Simic. “Our expected return over the next six years is 8.7 percent per year. This is consistent with the expectations of institutions, like ours, that have endowments of more than $1 billion.” 

The study also found that only 42 percent of institutions reported that gifts increased from 2003 to 2004. IU was among those; giving for IU increased from $108.1 million in fiscal 2003 to $121.4 million in fiscal 2004.  

The Indiana University Foundation is a not-for-profit corporation that serves IU’s eight campuses by raising funds and providing stewardship and administrative services for donors and for IU. 

The Commonfund manages endowments for more than 1,600 colleges and nonprofit organizations. The Commonfund Institute provides educational services and conducts research to serve scholars and practitioners.   

For more information:
The Commonfund Benchmarks Study