23 September 2015 11:30:50 IST

Stanford generates 7% returns on net of fees

Announcement made by Stanford Management Company

For the 12 months ending June 30, 2015, Stanford University's Merged Pool (MP) generated an investment return of 7 per cent net of fees, the Stanford Management Company announced.

The MP is Stanford's primary investment pool and includes most of the university's endowment and expendable funds, as well as capital reserves from Stanford Health Care and Lucile Packard Children's Hospital.

This result surpassed the portfolio's composite benchmark return of 3.2 per cent. It also surpassed the 4 per cent median return of large endowments and foundations as reported by the Wilshire Trust Universe Comparison Service, according to the Stanford News Service.

For the last ten years, the Merged Pool generated an 8.7 per cent annualised return net of fees, outperforming the composite benchmark by 0.7 per cent per annum. The ten-year performance represents more than $3 billion of added value versus the median results of large endowments and foundations, helping the university support present and future generations of students and scholars.

Stanford University's endowment rose in value by 3.6 per cent over the past year to $22.2 billion as of August 31, 2015, the last day of Stanford's fiscal year. The change in endowment value results from investment gains and losses, endowment gifts and other funds transferred into the endowment, offset by the annual payout for university operations. The university's endowment payout for fiscal year 2015 was $1.06 billion, equal to 4.9 per cent of the beginning-of-year endowment value. Budgeted endowment payout for fiscal year 2016 is $1.15 billion.