Abstract:

This study examined the financial performance of Schreiner University’s actively managed endowment and compared the performance to a hypothetical passive investment strategy. From 2014 to 2020, the actively managed endowment produced a cumulative return of 71.7%. In comparison, the passive, index-based portfolio produced a cumulative return of 72.9%. The actively managed portfolio outperformed the passively managed portfolio in four out of seven years but underperformed overall. The performance results of the assets classes were inconsistent throughout the seven-year period. Additionally, a passive strategy of 60% US equities and 40% US bonds would have resulted in a cumulative return of 98.9% over seven years.