Endowments Mixed At Area Colleges

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Several Central Massachusetts schools saw their endowment funds dip in fiscal year 2012, according to a study released today.

But at some area schools, endowment balances rose, particularly Fitchburg State University, according to the joint study by the National Association of College and University Business Officers (NACUBO) and the Commonfund Study of Endowment.

FSU, which has the smallest endowment of the local schools who participated in the study, saw its endowment jump 23.6 percent to $17.1 million in fiscal year 2012.

The College of the Holy Cross in Worcester, which at nearly $590 million has the largest endowment in the region, said its balance fell 3 percent from $607.7 million in 2011.

The University of Massachusetts Foundation endowment, which invests in the system's medical campus as well as four others around the state, saw a 6.8 percent increase to $565.1 million.

Worcester Polytechnic Institute's endowment fell 4.2 percent to $358.6 million. Clark University saw a 3.3 percent drop to $309.8 million. And Assumption College's balance fell 2.1 percent to $79.2 million.

The study's authors received the endowment balance data last month.

The authors cautioned that the year over year changes do not represent the rate of return on the endowments' investments.

The study took investment returns into account, as well as withdrawals to fund operations and capital expenses, donor gifts and contributions and the payment of endowment management and investment fees.

Across the country, the average endowment for the 831 schools participating in the study fell three-tenths of one percent. Schools with assets worth more than $1 billion saw the largest growth on average, which the study attributed to well-diversified portfolios with an equity bias, the ability to make long-term commitments to less liquid strategies, access to top-tier investment managers and larger endowment staffs.

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