The median return for endowments and foundations with more than $500 million this year is 3.6 percent, according to an estimate by Wilshire Trust Universe Comparison Service.
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Yale University’s endowment posted an 11.5-percent gain for the year ending June 30, outpacing Harvard’s investment performance for the fifth straight year, writes The Wall Street Journal.
“This is an excellent return”. He said Yale’s gain is “an impressive return”. “[Chief Investment Officer] David Swensen’s objectives are to build relationships with a small group of top money managers, and keep the focus on a few as opposed to the many … the man has delivered and continues to deliver”.
Yale’s spending and investment policies provide substantial support to the operating budget for current scholars, while preserving endowment purchasing power for future generations.
The value of the endowment rose 8.4 percent to $25.6 billion, according to a statement Thursday. Over the last two decades, the endowment has returned 13.7% annually. During the 20-year period, the endowment grew from $4.0 billion to $25.6 billion, net of spending. “One is, yes, this is a nice high investment return”, Jarvis said.
He laid out a number of changes aimed at improving returns, including an overhaul of the fund’s asset allocation strategy.
Yale’s endowment has increased at the rate of 10 percent a year over the last decade, starting at $15.2 billion. Over the long term, many of Yale’s asset classes beat their industry benchmarks. It outperformed “broad market results for domestic stocks, which returned 8.2 percent annually, and for domestic bonds, which returned 4.4 percent annually”, according to its release.
In fiscal 2016 Yale’s hedge fund and private equity investments could…
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Harvard’s Ivy League rival, located in New Haven, Conn., added $2.6 billion to the value of its endowment, to end the year at $25.6 billion.
