Duke Endowment Returns 8.9% in Fiscal 2024

DUMAC [Duke University Management Co.] Inc., which manages the endowment of Duke University, achieved an 8.9% return in fiscal 2024, which ended June 30. Assets of the fund’s long-term pool grew slightly to $11.9 billion from $11.6 billion at the end of the 2023 fiscal year.

“The mission of Duke University’s endowment is to support the people, programs and activities of the university in perpetuity,” stated the university’s report. “Over the years, growth of the endowment through investment return and charitable giving has enabled the university to provide scholarships and fellowships to students, build faculty excellence, launch new programs and research efforts, and support a wide range of important needs.”

Neal Triplett is the president and CIO of DUMAC.

DUMAC does not release a breakdown of its asset allocation, but, in a report, stated that the fund has a long-term target allocation of 56% to equities (comprised of both listed stocks and private equity), 16% to sources of independent return, 9% to commodities and 7% each to high-yield credit, real estate and investment-grade fixed income.

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Approximately 23% of the endowment supports financial aid, and another 21% supports faculty positions and professorships. Approximately 31% of the endowment is designated for unrestricted support of the university, 15% is restricted, and 10% is designated for instruction and research.

The endowment seeks to achieve an annualized real rate of return of at least 5%, according to the university report. This return would allow the endowment to fund university spending and allow for the growth of the fund’s assets after inflation.

The fund had negative returns in each of the last two fiscal years: negative 1.0% in 2023 and negative 1.5% in 2022. Its last positive return, in fiscal 2021, saw the fund achieve a 55.9% return. The endowment has returned an annualized 8.6% over the past 10 years.

Assets of the endowment peaked after the significant fiscal 2021 gain, at $12.7 billion, and have more than doubled since fiscal 2010, when they stood at $4.8 billion.