Yale endowment reports 20% return

The Ivy League school says its longer-term results remain in the top tier of institutional investors.

Yale’s endowment returned 11% per annum over the 10 years ending June 30, 2014, surpassing broad market results for domestic stocks, which returned 8.4% annually, and for domestic bonds, which returned 4.9% annually.

Relative to the estimated 7.6% average return of college and university endowments, over the past decade, Yale’s investment performance added $8.4 billion of value in the form of increased spending and enhanced endowment value.

Over the past two decades, Yale’s endowment generated returns of 13.9% per annum. Compared with the estimated 9.2% average return of college and university endowments, Yale’s investment performance added US$20.6 billion of incremental value. During the 20-year period, the endowment grew to US$23.9 billion from US$3.5 billion, net of spending.

Yale has a diversified, equity-oriented portfolio, with the following asset allocation targets for fiscal 2015: private equity (31%), absolute return (20%), real estate (17%), foreign equity (13%), natural resources (8%), domestic equity (6%), and bonds and cash (5%).

Related articles:

• Harvard endowment posts 15.4% return
• Foundations, endowments focus on risk management
• Endowments worried about returns