Preliminary Data Show Educational Endowments’ Investment Returns Averaged 15.8 Percent in FY2014

Staffing, Outsourcing and Consultant Use

Endowments reported an average of 1.5 full-time equivalent employees (FTEs) devoted to the investment management function in FY2014, down from 1.6 FTEs in FY2013. Endowments with assets over $1 billion had the largest average staff size, at 11.3 FTEs, while all four cohorts with endowment assets of $500 million or less reported one-half of an FTE or less devoted to investment management. Fifty-four percent of early study respondents said they have substantially outsourced the investment management function, a figure that will represent a significant increase from last year's 40 percent, if it is confirmed in the final survey. Seventy-eight percent of Study respondents to date reported using a consultant for various services related to investment management compared with 85 percent a year ago.