Stanford Investment Portfolio Generates 13.1% Annual Return, Slightly Beating Higher Ed Median Returns

Endowment gains 10.7%, grows to $24.8 billion.

The Stanford Management Company returned 13.1% for the year ending on June 30, according to the university’s website. The return edged out the broad universe of U.S. colleges and universities, which generated a median 12.9 % during the same period, according to Cambridge Associates. 

The value of the university’s endowment increased by10.7% to $24.8 billion for its fiscal year ending Aug. 31. “We are pleased to report $3.2 billion of investment gains for the year,” Robert Wallace, CEO of Stanford Management Company said in a statement. “Although comprising only a quarter of the total portfolio, public equity holdings led our result with very strong absolute and relative performance.”

Further details of the fund’s performance have yet to be disclosed.

The performance resulted in net annualized returns of 9.5% and 5.8% for the last five and 10 years, respectively, compared to 7.9% and 4.4% annualized median returns for colleges and universities over the same time periods.

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The 2017 results largely outperformed the fund’s returns last year, which yielded -0.4% for the year ending on June 30, 2016.

As the university’s investments office, the Stanford Management Company manages the university’s  $26.9 billion merged pool of total investments. The merged pool is the principal fund for investing the university’s endowment, and includes capital reserves of Stanford Health Care and Lucile Packard Children’s Hospital Stanford, along with other long-term funds.

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