Strong results from equities and increased attention from money managers has
seen small endowments emerge as the dominant performers in the 2004 NACUBO Endowment
Study (NES). Six of the top 10 performers were endowments with less than $100
million in assets. The 2004 study reveals the continuation of several trends:
greater allocations to alternative investments, increased reliance on external
money managers, and yearly decision making about spending rates.
A total of 741 public and independent institutions participated in the 2004
NES, representing $267 billion in combined assets. The NES provides information
on many aspects of endowment management, including performance, asset allocation,
operational practices and spending rates. This article takes a closer look at
the 2004 study.
