Dive Brief:

• College and university endowments posted an average return of 15.8% for their 2014 budget year.
• The endowments have posted an average return of more than 10% for four of the last five years, according to Commonfund, which conducted an endowment survey with the National Association of College and University Business Officers.
• Last year’s average return was 11.7%.

Dive Insight:

As Inside Higher Ed points out, endowments need to average at least 7% to 8% returns per year over 10 years to grow their principle, with a typical annual expenditure of 5% for the colleges they manage the money for. The 10-year return for endowments is now averaging on the lower edge of that break-even point — about 7%. The stock market was up about 20% for the 2014 budget year, with about one-eighth of a typical endowment’s portfolio invested in U.S. stocks.