Study: Educational Endowments' Investment Returns Averaged 15.5 Percent in FY2014

Risk Management

The Study found that 57 percent of participating institutions employ risk limits (strategies for measuring risk in specific forms of investments) in their portfolios, a marked increase from last year’s 50 percent. Seventy-six percent of this group use volatility calculations, such as standard deviation, up from 72 percent a year ago, while 61 percent use measures such as alpha and beta, up from 55 percent in FY2013. Forty-six percent of respondents reported using stress testing or scenario analysis for their portfolios compared with 41 percent a year ago.