Local schools lag in endowment returns measured with peers.Returns at the endowments of the USC An abbreviation for U.S. Code. , UCLA UCLA University of California at Los Angeles UCLA University Center for Learning Assistance (Illinois State University) UCLA University of Carrollton, TX and Lower Addison, TX and Pepperdine University Pepperdine University is a private institution of higher learning affiliated with the Church of Christ in unincorporated Los Angeles County, California, United States. The university's location overlooks the Pacific Ocean and is adjacent to the city limits of Malibu. lagged both the S&P 500 and the nation's top endowment earners in the year ended June 30. A report released last week by Bloomberg News found that seven of the universities with the largest endowments bested the S&P's 19.1 percent return in the 12-month period. Harvard University Harvard University, mainly at Cambridge, Mass., including Harvard College, the oldest American college. Harvard College Harvard College, originally for men, was founded in 1636 with a grant from the General Court of the Massachusetts Bay Colony. , with the nation's largest endowment at $22.6 billion, led the pack when it came to returns as well. The school posted a 21.1 percent overall return in the period ended June 30. USC, which breaks its endowment into pooled and unpooled funds, recorded an overall 14.3 percent gain, to $2.4 billion during the 12-month period. The pooled portion of the endowment, which is invested like a mutual fund and does not have donor restrictions on investment types, returned 16.9 percent, net of management expenses. UCLA also has a number of endowments and does not aggregate returns. Its $579 million endowment managed by the UCLA Foundation returned 15.2 percent in the period, while the larger $948 million endowment managed by the Regents office out of Oakland had a 14.7 percent return. UCLA's total endowment is $1.53 billion. Pepperdine University's endowment fund Noun 1. endowment fund - the capital that provides income for an institution endowment patrimony - a church endowment chantry - an endowment for the singing of Masses gained 15 percent to $426 million. Historically, endowments with more than $1 billion in assets have had higher annual returns because of better access to high-quality managers and an "earlier entree" into promising investments, according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. Damon Manetta, spokesman for the National Association of College and University Business Officers. "The larger schools would have higher allocations to alternatives, and smaller allocations to fixed-income, which was a drag for the year," said UCLA Investment Coordinator George Letteney. "If you're fortunate to have more equities in alternatives and less in fixed-income, you see higher returns." Alternatives include hedge funds hedge fund, in finance, a highly speculative, largely unregulated investment device. Originating in the 1950s, the funds "hedge" by offsetting "short" positions (borrowing a security and then selling it at a higher price before repaying the lender) against "long" , venture capital, private equity and opportunistic partnerships, Letteney said. A report by Santa Monica-based Wilshire Associates found U.S. foundations and endowments with more than $1 billion in assets gained 0.7 percent in the three months ended Sept. 30. "Most in the endowment world say we don't expect returns to mirror (2004 gains) in the future," said Pippin Pippin. For Frankish rulers thus named, use Pepin. A multimedia game and Internet machine from Apple that used the PowerPC architecture and a limited version of the Mac OS. . "We expect more moderate returns. We're making sure we're diversified and not totally counting on returns on U.S. stocks and bonds to power our portfolio." Bloomberg News contributed to this story. |
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