The average annual total return on investable assets for FY07 for 179 not-for-profit healthcare organizations participating in the 2008 Commonfund Benchmarks Study of Healthcare Organizations was 8.0 percent (net of fees), down significantly from 10.6 percent for FY06, but up from 6.3 percent for FY05.
The lower year-over-year return can be attributed largely to weaker investment performance in domestic equities and international equities, both of which saw returns decline by half compared with FY06, said the report. For participating healthcare organizations, domestic equities returned 6.3 percent in FY07 versus 13.9 percent in FY06, while international equities returned 12.1 percent compared with the previous year’s 24.7 percent return.
Perhaps the most noteworthy finding in this year’s study was a marked change in participating healthcare organizations’ asset allocation, in which the average share of portfolios committed to alternative strategies rose to 17 percent from 13 percent last year. Read the report.
