How does Harvard invest its endowment?

Harvard's endowment is heavily allocated towards alternative investment strategies such as private equity and hedge funds, which respectively accounted for 39 and 31 percent of its assets at the end of fiscal year 2023, according to Narvekar's note.

How do university endowments invest their money?

The Evolution of College Investing Strategies. Investing 60% of an endowment portfolio in equities, or stocks, and 40% in fixed-income securities, such as bonds.

Where does Harvard University get its money?

Harvard gets most of its funding from donations, but also is funded through tuition payments and government research grants. The government also fund some students loans which students use to pay tuition.

What is the 10 year return of Harvard Endowment Fund?

The fund's five-year annualized return is 9.1%, and 8.2% for 10 years. The S&P 500 gained 12.3% and 12.9%, respectively, in those periods. In Thursday's financial report, Harvard officials wrote that the endowment's 2.9% return is below the university's long-term target return of 8%.

What are the strategic asset allocations of Harvard Endowment?

Harvard offers three allocations with increasing exposure to equities, from 65% for Tax Efficient Balanced to 85% for Tax Efficient Aggressive Growth. Higher levels of equities are associated with higher expected returns over time but also greater risk.

How Harvard and Other Colleges Manage Their Endowments

Who funds Harvard Endowment?

Harvard has the biggest endowment in the US, standing at just over $50 billion. A chunk of its revenue comes from gifts from alumni, parents, and friends of the school.

What is the average return on the Harvard Endowment?

For the most recent fiscal year, which ended on June 30, 2023, the return on the Harvard endowment was 2.9% and the value stood at $50.7 billion. The endowment also made available more than $2.2 billion for the University's operating budget, supporting financial aid, faculty, research initiatives, and more.

How much does the president of Harvard make?

Harvard president's salary

Serving as Harvard's president can be a lucrative job, with Gay earning $879,079 in 2021, when she was president-elect, according to the Harvard Crimson. Outgoing Harvard president Lawrence S. Bacow earned more than $1.3 million that year, it noted.

What does Princeton do with its endowment?

The earnings from the endowment provide about two-thirds of the University's net annual operating revenues and help fund the University's highest priority strategic initiatives, while preserving real value for future generations. This percentage has steadily increased as the endowment has grown.

What university has the richest endowment?

Harvard University, with a $49.495 billion endowment as of FY2023, is the wealthiest university in the world.

Where does Harvard endowment go?

Endowment funds support nearly every aspect of University operations. The two largest categories of funds cover faculty salaries, including professorships, and financial aid for undergrads, graduate fellowships, and student life and activities.

What is the richest University in the world?

Harvard University, with a $50.9 billion endowment as of 2022, is the wealthiest university in the world.

Why is Harvard endowment so big?

About the endowment

Harvard is funded, in part, by an endowment. The endowment includes thousands of philanthropic gifts donated since Harvard's early history, many of which were given to support specific aspects of Harvard's teaching and research work.

Who invests university endowments?

Each university decides how to manage its endowment. Some rely on their own staff, others use trustees, and others hire professional investment managers. Endowment managers invest the funds in securities, real estate, venture capital, or other investment vehicles.

Why don't universities use endowments?

“Spending endowment resources to enroll more students would actually undermine the elite status of our wealthiest institutions, because being an elite school comes in part from how many people you exclude from attending your school,” he said. “Exclusion is a necessary counterpart to eliteness.”

Who controls university endowments?

One of the most important responsibilities of trustees is to oversee the management and allocation of the institution's assets. Trustees are legally obligated to be prudent in their investment management, but they also should make every effort to achieve as substantial a return as prudence will allow.

What does Yale do with its endowment?

The endowment also provides support for key academic priorities that further the university's commitment to research, scholarship, and education and have significant global impact.

What is Johns Hopkins endowment?

Endowment. $9.32 billion (2021)

Which Ivy League has the largest endowment?

Topping the list at nearly $50.9 billion at the end of fiscal year 2022, Harvard has the largest endowment among National Universities, according to data collected by U.S. News in an annual survey. Yale University in Connecticut has the second-highest endowment, totaling nearly $41.4 billion.

Who is the highest paid Professor at Harvard?

Harvard's highest-paid employee in 2021 was David J. Malan '99, who teaches the popular introductory computer science course Computer Science 50: “Introduction to Computer Science I.” Malan earned almost $1.6 million, up from $1.4 million in 2020.

Who is a billionaire Harvard alumni?

According to a 2022 Forbes report, among the alumni of Harvard University there are 188 billionaires. This is more than any other school in the world.

Who is the highest paid university president in the US?

The Chronicle's report looked at 312 leaders at private colleges with expenditures of $100 million or more. Topping the list was Amy Gutmann, the former president of the University of Pennsylvania, who earned a whopping $22.87 million in 2021.

What is Dartmouth endowment?

The endowment provides maximum sustainable financial support to Dartmouth to serve its mission in perpetuity. Core to the endowment's purpose is balancing the interests of current and future generations of Dartmouth students.

What is Notre Dame's endowment?

The endowment provides funding for world-class faculty, but also for library holdings, ongoing and new research programs, institutes and centers devoted to pressing issues of the day.

What is Boston College's endowment?

Last year, BC's endowment reached its record-high of $3.8 billion after a $1.2 billion jump from 2020. BC no longer discloses its investment portfolio, but most modern endowments invest in a variety of assets, including stocks, bonds, and real estate, among others.