Federal funding cuts could impose significant financial strain on elite universities. One key factor in determining a university’s resilience to such funding disruptions is the liquidity of its endowment.
YAle model
The grades for all the Ivy League endowments are in – and they are rather disappointing. Save for Brown, all Ivies underperformed the 9.9% return of a domestic 60-40 portfolio in fiscal year 2019. The Ivy average in FY 2019 was 6.7%, significantly underperforming the 60-40 and reversing two years in which they outperformed the traditional domestic benchmark.