Institutional Investor Review: Record the most outstanding investors and events
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On October 4, Yale University announced the endowment fund transcript for the latest fiscal year ended June 30, 2022 (the full annual report has not been released yet) .
Latest fiscal year, Yale University endowment fund recorded a yield of 0.8%, the lowest rate of return since 2009 (at that time, the scale of the endowment fund shrank by nearly 25%) .
and 2021 fiscal year (as of June 30, 2021) , Yale has just harvested the highest annual return on investment in decades —’s astonishing 40.2% , which also pushed the total asset size of its endowment fund to 42.3 billion .
According to data disclosed by Yale University’s official website, in the 2022 fiscal year, the Yale University endowment fund received US$266 million in investment income. After allocating US$1.6 billion to the university's operating budget, the size of the endowment fund (asset value) , fell from US$42.3 billion on June 30, 2021 to US$41.4 billion on June 30, 2022. However, the 10-year return of the endowment fund is still 12.0%, and the 20-year return is 11.3%, which is still 3.4% and 3.5% higher than the average return level of university endowment funds during the same period.
Although the Yale University Endowment Fund's return data for fiscal year 2022 is only 0.8%, the "positive" return on investment obtained is already one of the rare "positive" annual return rates among the disclosed overseas university endowment funds summarized by IIR.
annual return rate is "positive", that is, "winner"
The latest fiscal year investment results of 16 overseas university endowments that are not fully summarized by IIR Research Institute so far (including an investment management company that manages multi-school endowment funds and a Canadian university, the fiscal year deadline is not exactly the same, with 6 in 2022. The main month is on the 30th, and some financial report statistics are also on March 31 or August 31, 2022) , and there are 8 universities/managements with donation funds of more than US$8 billion. Among the 38 html, only Yale and Penn ( University of Pennsylvania ) barely gained a single-year positive rate of return, and the rest were "negative".
. Among the 16 companies, the worst performance of is the University of California Investment Department, which manages a $18.2 billion endowment fund (the University of California Investment Department is responsible for managing a total of $152 billion in university asset pool, which mainly includes two types of funds: pension funds and endowment fund pool) , and the single-year yield of is -7.6%.
As of now, 4 Ivy League schools have disclosed the 2022 fiscal year data.
In addition to the above-mentioned Yale University, Penn Endowment Fund (University of Pennsylvania Endowment Fund) in fiscal year 2021 achieved a record return of 41.1%, while in fiscal year 2022, the yield was less than 1%. Although the endowment fund has lost some (about $83.9 million) , after the new donation, the scale of the Penn University endowment fund did not decline like Yale, but increased by $200.8 million, from $20.5 billion in fiscal year 2021 to $20.7 billion.
Cornell University Endowment Fund , the investment report card for fiscal year 2021 was 41.9%, even higher than Harvard (33.6%) , Yale (40.2%) and Penn (41.1%) , and in the 2022 fiscal year, its annual yield was -1.3%, currently only higher than the Dartmouth College endowment fund, with a scale of US$9.8 billion.
Dartmouth College Endowment Fund has dropped to $8.1 billion from $8.5 billion in the previous fiscal year, with an annual rate of return of -3.1%. The years before the negative yield rate was: (-19.6%) and (-1.9%) in fiscal year 2016.
Ivy League schools, there are currently Harvard, Princeton, Columbia (Columbia University) , Brown University . The 2022 fiscal year report card has not been announced yet, but it can be foreseeable that as long as the single-year return is "positive", it should be considered a "winner".
As of now, the worst performance is UC California (public) . The endowment fund managed by its investment department has a single-year return rate of 2021 fiscal year, at 33.7%. In the 2022 fiscal year, the return rate became -7.6%, but it is still slightly higher than its -9% performance benchmark.
Additional mention is that The asset class managed by the University of California Investment Department The best performing asset class in fiscal year 2022 is "real estate" , and its endowment fund pool (endowment fund size is $18.2 billion) and pension fund (pension fund size is $81 billion) net returns of this category are 32.2% and 29.1% respectively; The second is " physical assets " category , with net returns of around 10%; Another asset class that brings a positive return is "private credit" , with net returns of endowment fund pool and pension funds of 4.6% and 3.4% respectively, other categories (open market stocks, fixed income, private equity, absolute returns, cash, etc. ) returns are all negative.
also manages multiple endowments of public universities. Preliminary data shows that it manages approximately US$65.2 billion in assets, of which approximately US$52.5 billion in endowment funds) , , and permanent fund managed by it (Permanent Fund) , long-term fund (Long Term Fund) , annual returns are both lower than -6% (Financial year statistics as of August 31) , and the returns of these two types of funds in the previous fiscal year exceeded 31%. Among the 16 endowment funds/institutions currently summarized by the
IIR Research Institute, two of them have positive returns, but the scale of the endowment funds is relatively small. The two companies are: , , , , , , , single-year yield , , , , , , , , , , , , , , , , , , , , , , .
University budget "pillar"
The investment income of the university endowment fund is an important source of operating funds for many overseas universities. Among them, the endowment fund of private universities is particularly outstanding.
In the past 10 years, Yale University has received a total of $12.7 billion in support from its endowment funds, and in the previous decade, it has received a total of $7.9 billion.
New fiscal year 2023, the Yale University Endowment Fund is expected to provide spending to schools of $1.7 billion ($1.6 billion in fiscal year 2022) , accounting for about 34% of the school’s operating budget.
Penn Endowment Fund provided the university with $877 million in fiscal year 2022, an increase of nearly $80 million from the previous fiscal year. Over the past 10 years, the Penn Endowment Fund has allocated more than $5.2 billion to schools. About 5% of the annual revenue of the Cornell University endowment fund is used to support the university's operating budget. In fiscal year 2022, the endowment fund allocated $352 million; the Dartmouth College endowment fund has also allocated $336 million to support schools this fiscal year, accounting for about 30% of the operating budget.
