Last year marked a dramatic turn for US college endowments as hundreds of universities reported steep losses, reflecting the tumult in global markets.
Endowments took an 8% average loss for the year ending June 30, according to a study released Friday by the National Association of College & University Business Officers and TIAA. That’s down from an average gain of 30.6% a year earlier.
The latter half of fiscal 2022 took a toll on stocks and bonds, as inflation surged and the Federal Reserve responded with aggressive interest rate hikes. The S&P 500 fell 12% for the fiscal year.
“The 2022 fiscal year was truly a tale of two markets, with positive economic tailwinds driving equities higher through December 2021, followed by a crushing combination of inflationary pressures,” Jill Popovich, senior managing director and regional general manager at TIAA, said in a statement.
Endowments still boosted overall spending, according to the study, which includes responses from 678 institutions. Respondents reported spending a total of $25.85 billion, up from $23.89 billion last year.
Financial aid accounted for most of the spending at 46%, followed by 15.6% for academic programs and research.
