From the Register-Mail:
A national report released this week revealed that college endowment funds across the country have taken heavy hits from the volatile stock market….
Locally, though investments have taken a fairly significant tumble, institutions arenâ€™t faring as poorly due to the way they typically spend endowment funds.
Both Knox College and Monmouth College factor relatively small amounts of endowment funds into their annual budgets, about 5 percent and 10 percent, respectively. The schools also use a 12-quarter trailing average when determining the amount of endowment money to spend.
â€œIt averages out the ups and the downsâ€ in the market, said Knox President Roger Taylor. Colleges take the average value of the endowments for the previous 12 quarters, average those numbers and then use it as a baseline for how much money to spend in the next fiscal year.
Taylor said Knoxâ€™s endowment has fallen about 20 percent this fiscal year, from $71.4 million on June 30 to about $56 million. According to the NACUBOâ€™s report, the collegeâ€™s endowment fell 10.1 percent in the 2008 fiscal year, from $79.4 million to $71.4 million.
That 20 percent decline, â€œI suspect, compared to a lot of folksâ€™ retirement 410(k)s, is pretty good,â€ Taylor said.