Yale Endowment Earns 22.3% Return

Colleges and Universities A-Z Yale University
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<p>Yale's Endowment earned a 22.3% return in the fiscal year ending June 30, 2005, bringing total assets to $15.2 billion, the University’s Investments Office reported. The Endowment was valued at $12.7 billion on June 30, 2004.</p>

<p>"The outstanding performance by the Investments Office in the past year has matched a record of achievement over time that has earned (Chief Investment Officer) David Swensen and his colleagues the highest possible praise and admiration from their peers,” President Richard C. Levin said. "Yale’s capacity to fulfill its ambitious mission has been greatly enhanced by their superb stewardship of the Endowment.”</p>

<p>Spending from the Endowment in the University's 2005-6 fiscal year is expected to total $610 million. The Endowment's contribution equals approximately 31% of the University's revenues, and is Yale’s single largest source of support. The share of the operating budget provided by the Endowment has more than doubled in the past decade.</p>

<p>Yale's Endowment has returned an annualized 17.3% over the past 10 years, placing the University investment performance in the top one percent of institutional funds. During the last decade, Endowment funds grew from $4.0 billion to $15.2 billion.</p>

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<p>if only there was a yale mutual fund!!!</p>

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<p>Swensen has lots to say about Mutual Fund none of it too complimentary:</p>

<p><a href="http://www.onpointradio.org/shows/2005/09/20050913_b_main.asp%5B/url%5D"&gt;http://www.onpointradio.org/shows/2005/09/20050913_b_main.asp&lt;/a&gt;&lt;/p>

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<p>in the alumni magazine, he also berated the average mutual fund, but suggested investing in index funds instead, which average around 10% per year over long periods. Yale's averaging 17% per year, even during a major slump, a feat which I think even he would agree would indicate a smart investment choice.</p>

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<p>The major difference between Yale's endowment and us mere mortals is that Yale's endowment has a very long time horizon (perpetuity). Therefore, Swensen can take on a lot of "liquidity risk" in energy and timber investments which will deliver a higher return precisely because Yale can be so patient with them.</p>

<p>Both of Swensen's books are excellent by the way. "Pioneering Portfolio Management is geared for the professional whereas the recently released "Unconventional Success" is for the individual investor.</p>

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<p>If he taught a class, I would take it tomorrow! I WISH!!</p>

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<p>he does teach a class, and undergrads can take it.</p>

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<p>really? whats it called? what department? is it a seminar or a lecture?</p>

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<p>When do the other ivies report on their endowments?</p>

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<p>Econ 450a: Investment Analysis
David Swensen and Dean Takahashi (the #2 in the Investments Office)</p>

<p>It's a seminar that meets on Monday afternoons.</p>

<p>The Investments Office also hires students to work part-time and takes a few of the best econ majors for full-time jobs after graduation.</p>

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<p>Stanford's endowment rose 19.5% to $12.4 billion.</p>

<p>(Announced last week)</p>

<p>The preliminary Harvard numbers should be available by mid-October; Princeton's numbers, historically, aren't available until the end of the calendar year.</p>

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<p><a href="http://www.browndailyherald.com/media/paper472/news/2005/09/21/CampusNews/ThirdParty.Investment.Team.Helps.Grow.U.Endowment-992392.shtml%5B/url%5D"&gt;http://www.browndailyherald.com/media/paper472/news/2005/09/21/CampusNews/ThirdParty.Investment.Team.Helps.Grow.U.Endowment-992392.shtml&lt;/a&gt;&lt;/p>