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“As of October 2023, Harvard's endowment has an 8.2% 10-year return. In fiscal year 2023, endowment returns averaged 7.7%, with smaller endowments posting large
by VincentEvans 3y ago
“As of October 2023, Harvard's endowment has an 8.2% 10-year return. In fiscal year 2023, endowment returns averaged 7.7%, with smaller endowments posting larger returns. Institutions with over $5 billion in assets have historically had higher 10-year average returns of 9.1%.”
https://www.highereddive.com/news/college-endowment-returns-fiscal-2023/707575/ https://www.highereddive.com/news/college-endowment-returns-...
- HDThoreaun 3y ago10 years isnt very long. Whos to say we'll have another 40 year bull market like we just did?
- VincentEvans 3y agoTrailing 10 year performance is a standard reporting metric used to facilitate risk-and-return decisions in an uncertain world. Here it serves to simply add weight to an argument that expecting a 5% annual return for invested endowment funds is reasonable and supported by historical evidence. If things do not go as well going forward - all it means that principal will erode over time.