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College endowments on the whole experienced an average increase of nearly 11 percent in the July 1, 2005 to June 30, 2006 period. Traditionally, the endowment funds of black colleges and universities tend to lag the performance of their predominantly white peers. But this year several of the nation's black colleges and universities beat the national average.
Spelman College's endowment growth in percentage terms was close to that achieved by Harvard University.
In the July 1, 2005 to June 30, 2006 period, the Standard & Poor's 500 stock index rose 8.6 percent. Since about 60 percent of all college endowment funds are invested in stocks, it is not surprising that the typical college endowment fund increased its value by 10.7 percent in the period from July 1, 2005 to June 30, 2006. According to a report by the National Association of College and University Business Officers (NACUBO), college endowment funds had their fourth consecutive year of growth.*
The largest college and university endowment funds tended to perform better than smaller funds. Among the giant funds, the Massachusetts Institute of Technology posted an impressive gain of 24.7 percent in the July 1, 2005 to June 30,2006 period, more than doubling the average growth of endowment funds nationwide. Yale University, which also has posted impressive gains in recent years, saw its...