Cornell Endowment Returns 3.6% in Fiscal 2023

Cornell’s endowment fared well in fiscal 2023, with a return above most of its peers. The Cornell University Office of Investments announced a return of 3.6% for the period ending June 30, a $355 million increase in assets to $10 billion.

“The university concluded the fiscal year with a solid return relative to the environment,” Cornell Investment Office CIO Kenneth Miranda said in a statement. “We attribute this performance to our work since 2016 to diversify the university’s investment portfolio and strategies, reduce fees, and enhance liquidity and flexibility.”

Ivy League endowment returns were muted for fiscal 2023. While equities had strong returns, alternative investments like venture capital and private equity performed poorly. These endowments typically have larger allocations to alternatives.

Cornell’s endowment returns still shined compared with its peers, besting Harvard University (2.9%), Brown University (2.7%), Yale University (1.8%), Dartmouth College (1.6%), the University of Pennsylvania (1.3%) and Princeton University (-1.7%). Only Columbia University’s 4.7% return outperformed Cornell.

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According to the Cornell Investment Office, headwinds for Cornell’s endowment included inflation, geopolitical tensions and tightening monetary policy.

The 3.6% fiscal 2023 performance followed a 1.3% loss in fiscal 2022 and a historic high 41.9% gain in fiscal 2021.

“Our long-term orientation, sophisticated asset allocation and overall structure of the portfolio continue to build a successful long-term structure capable of withstanding unexpected changes in market conditions,” Miranda said.

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Tags: Cornell Endowment, Cornell University, Cornell University Office of Investments, Kenneth Miranda

The Pension Benefit Guaranty Corporation granted $49.3 million in special financial assistance to the Local 210’s Pension Plan, a transportation industry multiemployer plan based in New York City.

The plan covers 3,887 participants. It was projected to become insolvent in 2026, when it would have had to cut benefits by 10%.

According to the pension fund’s Form 5500 from 2022, the Local 210’s Pension Plan had, as of the end of 2022, 559 active participants, 1,552 participants who are retired and receiving benefits, and 1,557 inactive participants entitled to benefits in the future. The plan had about $20.8 million in assets under management and was 15.92% funded.

The SFA provision of the American Rescue Plan Act allows for PBGC funding for severely underfunded multiemployer pension plans. Funds that receive assistance must monitor the interest resulting from the grant money as separate from other sources of funding. The PBGC requires that at least two-thirds of the money it provides be invested in “high-quality fixed income investments.”

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The Final Rule on Special Financial Assistance, issued in July 2022, states that the other third can be invested in “return-seeking investments,” such as stocks and stock funds.

Tags: PBGC, SFA, Special Financial Assistance