Flagship public universities in Texas and Virginia reported double-digit investment gains, driving U.S. endowments to reach record values.
The University of Texas Investment Management Co., which manages money for the University of Texas and Texas A&M University, gained 11.3% for the year through June 30 as the assets it oversees reached $32.2 billion, according to a preliminary report to the organization’s board.
It’s shaping up to be a second year of double-digit performance for many endowments. Most college funds end their fiscal year in June and report results in the fall as they receive performance on their private investments.
The University of Virginia gained 11.4% as the state school’s endowment reached a record $9.5 billion. The performance, which is gross of fees, was driven by private equity returns of more than 22% for the fiscal year, according to a report from the school’s investment office.
The University of Colorado Foundation investments gained 11 percent for the fiscal year. The fund was valued at $1.67 billion as of June 30, with $1.36 billion coming from the Colorado endowment, according to a university report. The fund notched an annualized gain of 7.5% over three years.
The returns compare with a median 7.4%, gross of fees, for endowments of all sizes in the period, according to data by Wilshire Trust Universe Comparison Service. Colleges usually report their numbers net of fees.
Among private school endowments, Massachusetts Institute of Technology gained 13.5% on its record $16.4 billion fund while Dartmouth College posted a 12.2% return as the fund’s value rose to a record $5.5 billion.
