January 2012 – Special Research Report: Endowment study shows large endowments allocated an average 23.2% to hedge funds
Infovest21 on Jan 8th 2012
Endowment study shows large endowments allocated an average 23.2% to hedge funds
Infovest21 compared the asset allocations for a sampling of select large endowments (those with assets over $1 billion) which provided detailed data on absolute returns. The average allocation to absolute returns/marketable alternative equity for the 17 endowments examined was 23.2% in FY2010 versus 22.2% in FY 2009.
Lois Peltz, president of Infovest21, commented that Boston College and University of Chicago were among those with the largest allocations to absolute return strategies at 36% and 30% respectively. Columbia University and MIT each allocated 28% to absolute returns while University of California allocated 27%.
In FY2010, the large endowments also allocated an average 27.8% to equities, 12.9% to fixed income, 18.4% to private equity, 12.8% to real assets, 1.3% to natural resources and 6.8% to other.
Details of specific endowments and historical comparisons can be found in Infovest21’s just-released endowment asset allocation study.
| Equity | Fixed Income | Absolute Return/ Marketable Alternative Equity | Private Equity | Real Assets |
Natural resources |
Other | |
| FY2010 Average |
27.8 |
12.9 |
23.2 |
18.4 |
12.8 |
1.3 |
6.8 |
| FY 2009 Average |
26.7 |
15.0 |
22.2 |
16.4 |
12.0 |
0.8 |
3.7 |
According to preliminary data for National College and University Business Officers, the average endowment with assets over $1 billion allocated 58% to alternatives in fiscal year 2011. Meanwhile institutions with assets under $25 million had an average alternative investment allocation of 9%.
Filed in Infovest21 Special Research Report | No responses yet
