Boston ? University endowments earned an average of 3 percent on their investments last year, reversing declines seen in 2001 and 2002.

When inflation and spending from endowments were taken into account, schools were probably worse off on average in the year ending June 30 than a year earlier, according to figures released today by the National Association of College and University Business Officers.

But their investment performance was better than in 2001 and 2002, which saw declines of 3.6 percent and 6 percent. Since June, many endowments have risen considerably with the rising stock market.

“The good news is we turned the corner,” said John Griswold, executive director of Commonfund Institute, a research center associated with nonprofit fund manager Commonfund. “The bad news is, it’s not enough to cover the increases in costs and the spending that is normally taken out of the endowment.”

The Kansas University Endowment Association’s assets followed suit with the national trend, though its increase was less than the national average. The Endowment Association reported that it saw a 0.3 percent increase in endowed funds in the 2003 fiscal year, topping out at $734.5 million.

The endowment’s value dipped 20 percent from June 2000 to January 2003.

The better performers in 2003 included the University of South Carolina system, which earned more than 5 percent on its investments and saw its endowment grow 6.8 percent to $312.5 million.

Overall, however, the wealthiest schools fared best.

The 39 schools with assets over $1 billion earned on average 4.1 percent, while schools between $51 million and $1 billion earned on average between 2 percent and 3 percent, according to association’s survey of 723 schools. The smallest endowments earned on average 3.5 percent.

Schools depend on their endowments for as much as one-third of their budgets.