Dartmouth Announces Endowment Returns

During fiscal year 2017, the fund earned $630 million, and now approaches $5 billion.

Dartmouth’s endowment generated an investment return of 14.6% for the fiscal year ending June 30, 2017, resulting in an all-time high value of $4.96 billion.

The endowment earned $630 million in net investment gains, with gifts and other net transfers adding $77 million.

During the fiscal year ending June 30, 2017, Dartmouth’s endowment benefited from the broad rise in public markets, both in the U.S. and internationally. Returns were enhanced by strong performance relative to benchmark indices across the portfolio.

“We are pleased with these results,” says Alice Ruth ’83, who was named chief investment officer for Dartmouth this past March. “Dartmouth’s outstanding returns are a direct result of partnerships with world-class managers, which bring breadth and depth to the portfolio in service of Dartmouth’s mission.”  

Equally important, Dartmouth has generated superior returns over the long term. Over the past 5, 10, and 20 years, returns were 10.6%, 6.4% and 10.2%, respectively.

“The endowment’s investment strategy has consistently been focused on generating exceptional long-term risk-adjusted returns,” says Trustee Rick Kimball ’78, chair of the board’s investment committee. These results compare favorably with global markets, a 60/40 portfolio, and Dartmouth’s policy benchmark.

Fiscal Year Annualized Returns

 

1-Yr

5-Yr

10-Yr

20-Yr

Dartmouth

14.6%

10.6%

6.4%

10.2%

“Dartmouth’s endowment plays a critical role in supporting the operations across the institution, including faculty compensation, funding our commitment to a need-blind undergraduate admissions policy, and support for the professional schools,” says President Phil Hanlon ’77.

The spending distribution from the endowment was $225 million, which is over 25% of total net operating revenues for fiscal year 2017. During the past decade, the College’s endowment value grew by more than $1 billion from gifts and investment returns, net of spending. The spending distribution during that period amounted to almost $2 billion.