September 26, 2008

As Endowment Returns Fall, Colleges Lower Expectations

By Kathryn Masterson

After years of double-digit gains, college endowments are feeling the pinch from distressed financial markets. Some colleges are reporting negative rates of return for the fiscal year that just ended, and even those that performed better are wondering what the financial crisis will mean.

If the market’s slide continues, or the credit crunch worsens, some institutions may put off certain projects until conditions improve.

“This is an extraordinarily serious

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