OCTOBER 11, 2017

Yale’s Endowment returns 11.3% for fiscal year

by Jody Barhanovich

Yale’s endowment earned an 11.3 percent investment return for the year ending June 30, 2017. The endowment value increased from $25.4 billion on June 30, 2016, to $27.2 billion on June 30, 2017.

The university’s longer term results remain in the top tier of institutional investors. Yale’s endowment returned 12.1 percent per annum over the 20 years ending June 30, 2017, exceeding broad market results for domestic stocks, which returned 7.5 percent annually, and for domestic bonds, which returned 5.2 percent annually. Relative to the estimated 7.3 percent average return of college and university endowments, over the past 20 years Yale’s investment performance added $24.3 billion of value in the form of increased spending and enhanced endowment value. During the 20-year period, the endowment grew from $5.8 billion to $27.2 billion.

Yale’s 20-year asset class performance remains strong. Domestic equities returned 12.2 percent, besting the benchmark by 4.7 percent annually. Foreign equities produced returns of 14.1 percent, surpassing the composite benchmark by 7.8 percent annually. Absolute return produced an annualized return of 8.9 percent. Leveraged buyouts returned 12.6 percent, while venture capital returned 106.3 percent. Real estate and natural resources contributed annual returns of 10.3 percent and 15.2 percent, respectively

In addition, Yale continues to maintain a well-diversified, equity-oriented portfolio, with the following asset allocation targets for fiscal 2018: absolute return (25 percent); venture capital (17 percent); foreign equity (15.5 percent); leveraged buyouts (14 percent); real estate (10 percent); bonds and cash (7.5 percent); natural resources (7 percent); and domestic equity (4 percent).

The university further seeks to limit illiquid assets (venture capital, leveraged buyouts, real estate and natural resources) to 50 percent of the portfolio.

Forgot your username or password?

Privacy Preference Center