Harvard's endowment drops sharply amid recession
The total value of Harvard University's endowment plunged nearly 30 percent in the last fiscal year as the elite institution's portfolio was battered by the worldwide recession, the university's management company said Thursday.
By Agencies |
BOSTON: The total value of Harvard University's endowment plunged nearly 30 percent in the last fiscal year as the elite institution's portfolio was battered by the worldwide recession, the university's management company said Thursday.
The endowment stood at $26 billion on June 30, after distributions and donations, the university said. It stood at $36.9 billion 12 months earlier, at the close of the previous fiscal year. The decline had already prompted a number of moves by Harvard in recent months, including the elimination of 275 staff jobs and a freeze on salaries.
Harvard Management Company president and CEO Jane Mendillo said its portfolio was impacted by ``extreme volatility and financial dysfunction.'' But she said the long-term performance of the endowment remained strong, with a 5-year annualized return of 6.2 percent and a 10-year return of 8.9 percent.
HMC said in a report that the decline was in line with other major universities and that even after the 27.3 decline in fiscal 2009, Harvard's endowment remains significantly larger than any other university.
Separately, Yale University reported its endowment fell 30.4 percent in June from a year earlier, to $16 billion.
Harvard's endowment distributed $1.7 billion to the university in fiscal 2009, amounting to more than one-third of the school's operating budget, according to the statement.
The university said the decline in investment performance _ not including donations and distributions _ was 27.3 percent, according to Harvard spokesman John Longbrake.
The endowment stood at $26 billion on June 30, after distributions and donations, the university said. It stood at $36.9 billion 12 months earlier, at the close of the previous fiscal year. The decline had already prompted a number of moves by Harvard in recent months, including the elimination of 275 staff jobs and a freeze on salaries.
Harvard Management Company president and CEO Jane Mendillo said its portfolio was impacted by ``extreme volatility and financial dysfunction.'' But she said the long-term performance of the endowment remained strong, with a 5-year annualized return of 6.2 percent and a 10-year return of 8.9 percent.
HMC said in a report that the decline was in line with other major universities and that even after the 27.3 decline in fiscal 2009, Harvard's endowment remains significantly larger than any other university.
Separately, Yale University reported its endowment fell 30.4 percent in June from a year earlier, to $16 billion.
Harvard's endowment distributed $1.7 billion to the university in fiscal 2009, amounting to more than one-third of the school's operating budget, according to the statement.
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The university said the decline in investment performance _ not including donations and distributions _ was 27.3 percent, according to Harvard spokesman John Longbrake.
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