[elliekelly]

> Not in real terms it doesn't. When was the last time typical moderate risk investments had long-term returns more than 5% above inflation?

The asset allocation for a $100MM+ endowment FBO educational institution typically includes about 10% PE, 5% VC, and 20-25% in alts (hedge funds, derivatives, long/short plays, etc). These aren't even close to "typical moderate risk" investment vehicles.

And the bigger the endowment, the bigger the percent allocation to those types of investments. For example, a super endowment like Harvard probably has closer to 50% of the portfolio in alternative strategies.

[AnthonyMouse]

> These aren't even close to "typical moderate risk" investment vehicles.

In terms of average long-term returns they are, if not worse. Major index ETFs have a very inconvenient tendency to edge out actively managed funds as a general rule, and university endowments are no exception.