Dartmouth’s endowment earned an investment return of 12.1 percent for the 2013 fiscal year, outperforming the portfolio’s benchmark return of 10.3 percent.
Dartmouth’s Chief Investment Officer Pamela L. Peedin ’89, Tuck ’98, says, “This year’s returns are a strong result for Dartmouth and the many critical programs the endowment supports. The portfolio benefited from robust equity markets and particularly from excellent performance in venture capital and marketable alternative investments.”
As of June 30, 2013, the endowment was valued at $3.7 billion, reflecting an increase of $247 million over the previous end-of-year value. The increase reflected net investment gains of $405 million and new gifts and transfers of $27 million, offset by distributions of $185 million to support Dartmouth programs.
Dartmouth’s endowment has generated an annualized return of 9.4 percent for the 15 years ending June 30, 2013, outperforming the 4.2 percent average annualized return for the Standard & Poor’s 500 Stock Index over the same period. That endowment rate of return also compares favorably to a 60 percent equity/40 percent bond benchmark return of 5.0 percent and ranks in the top quartile of institutional investors as represented by the Wilshire Trust Universe Comparison Service (TUCS) Endowments & Foundations Universe.
“While we’re always pleased with robust year-end returns, our endowment investment strategy takes the long view to ensure that Dartmouth’s financial health is protected for generations to come,” says Trustee Richard H. Kimball ’78, chair of the Board’s Investment Committee. “We aim to further that goal in the coming year by continuing to develop relationships with world-class investment managers across regions and strategies.”
The endowment funds more than 20 percent of Dartmouth’s annual operating budget. Programs supported by the endowment include financial aid, academic, research, athletic, recreational, and cultural programs.