Inside Higher Ed :: The Rich Get Richer

Inside Higher Ed :: The Rich Get Richer: "The Rich Get Richer

The 2005 fiscal year was generally good to college endowments, which saw an average rate of return of 9.3 percent, according to data being released today by the National Association of College and University Business Officers.

While the average rate of return was less than the previous year’s average (15.1 percent), the 2005 average return exceeded investment industry benchmarks. And NACUBO’s report about the data described the figure as “optimal” in that it would allow the vast majority of colleges to support their operations while accounting for inflation and investment fees. The overwhelming majority of colleges saw increases in 2005, with only scattered exceptions — notably among private colleges in Georgia, where Coca-Cola has historically fueled endowments and the declines in the company’s stock have hit some institutions hard."