University endowments post their worst losses since 2009

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MARKETS * FINANCE

After Record Year, University-Endowment Returns Drop Into Negative Territory

Endowments post their worst losses since 2009 as stocks, bonds, other assets decline

The endowmehttps://www.wsj.com/articles/rate-squeeze-punishes-once-triumphant-tech-stocks-11667082068nt of Washington University in St. Louis lost 10.6% in the most recent fiscal year.
PHOTO: ROBERT COHEN/ASSOCIATED PRESS

By Juliet Chung and Melissa Korn
Juliet.Chung@wsj.com
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Melissa.Korn@wsj.com
Updated Oct. 31, 2022 7:03 am ET

Investment returns for university endowments have fallen back to earth after scoring their biggest gains in a generation the year before, reflecting a dramatically changed investment environment in which stocks, bonds and other assets have sold off sharply.

The endowment of Washington University in St. Louis lost 10.6% in the fiscal year ended June 30 after notching a 65% gain the prior year, the school told The Wall Street Journal, shrinking its size to $13.3 billion. Other schools that have reported big swings in their multibillion-dollar endowments include Stanford University, which lost 4.2% after gaining 40.1% previously; Brown University, down 4.6% after posting a 51.5% increase; and the Massachusetts Institute of Technology, down 5.3% after rising 55.5%.

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