Siena Church

The NACUBO Study

Siena Church

You may think that college endowments, with all their access to academic knowledge and brainpower, would outperform portfolios composed of index funds. Unfortunately, this is simply not the case. Take a look at the chart below from the National Association of College and University Business Officers (NACUBO), which is an organization with membership totaling more than 2,500 U.S. colleges and universities. In part, NACUBO provides comprehensive annual data that reports on the financial status of university endowments, and is the industry standard for such information.  The specific IFA Index Portfolios were selected based on the average asset allocations of equities and fixed income/cash equivalents, as provided by NACUBO. For the asset levels shown, the comparable IFA Index Portfolios outperformed the average endowment's return. This suggests that IFA has a better set of benchmarks than those probably used by these institutions. Additionally, the IFA Index Portfolios' returns were derived through global diversification, risk and return optimization, investment transparency and no use of speculation or leverage.

The passive rebalancing of IFA Index Portfolios is a very low cost and low maintenance investment strategy that minimizes need for in-house investment staff, board member involvement, consultant involvement and the time consuming, useless and costly process of manager selection and terminination.

Note: The chart below reflects IFA's New Index Portfolios