Increase over two-year period is largest in College history
On Sept. 4 Dartmouth reported that the total return on the College's
endowment was 23.7 percent for the fiscal year that ended June 30, 2007. This
includes a 24.3 percent return on the investment assets portion of the
endowment, which represents about 97 percent of the total.
The value of the endowment increased from $3.09 billion to $3.76 billion
over the course of the fiscal year. The change in endowment value includes the
increases resulting from investment activity as well as new gifts, and
decreases because of spending for College activities.
"We're very excited by this performance," says Chief Investment Officer
David Russ. "Dartmouth actively directs its investment portfolio with external
investment managers who work to add value over the indices in each asset class.
Two things were the main drivers of the great investment outcomes for the past
fiscal year: favorable overall asset allocation and the investment strategies
of our managers."
Over the past two fiscal years the value of the entire endowment has grown
by $1.06 billion through a combination of solid investment performance and the
generosity of Dartmouth's alumni and friends. This is the largest increase over
a two-year period in the history of the College.
The Investment Office staff works closely with the Investment Committee of
the Board of Trustees to
establish investment policies, guidelines, and objectives; monitor performance;
and assist in the selection of managers.
Adam Keller, executive vice president for finance and administration, says,
"We saw positive results in every asset class in the fund relative to their
respective indices. I credit the great work of Dave and the Investment Office
staff in the selection of managers and the allocation of assets, as well as the
guidance provided by the Investment Committee. This recent strong performance
has also increased the longer-term annualized returns to 14.6 percent for five
years and 14.2 percent over ten years."
Each year a percentage of the endowment earnings is used to support College
operations. The College relies on its endowment to underwrite about 20 to 30
percent of its annual operational budget.
By SUSAN KNAPP
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