Yale Endowment Reaches Record Spending Levels and Market Value after a 4.5% Return
Yale’s Endowment earned a 4.5% return in the fiscal year ending June 30, 2008, bringing total assets to $22.9 billion, the University’s Investments Office reported. In a fiscal year ushered in by the start of the financial crisis, the University generated $1.0 billion of investment gains during a period in which global equity markets declined by double digits. The Endowment was valued at $22.5 billion on June 30, 2007.
Spending from the Endowment in the University’s 2008-9 fiscal year is expected to total $1.16 billion. The Endowment’s contribution equals approximately 44% of the University’s net revenues and is Yale’s single largest source of support. The Endowment’s contribution to the operating budget has grown by over 360% in the last decade.
“The continued growth of the endowment coupled with our prudently adjusted spending policy is providing unprecedented resources for the University in support of its research and educational missions,” said President Richard C. Levin. “Thanks to the exceptional generosity of our alumni and friends and to the extraordinary endowment management by Chief Investment Officer David Swensen and his colleagues, Yale is undertaking ambitious initiatives to strengthen its contribution to the advance of science and to make the superb education it offers more affordable and accessible.”
Yale’s Endowment has returned an annualized 16.3% over the past 10 years, placing the University’s investment performance in the top rank of institutional funds. Relative to the average return of college and university endowments, Yale’s investment performance has added almost $13 billion to the Endowment over the past decade. During that time, Endowment funds grew from $6.6 billion to $22.9 billion.