Stanford Management Company releases 2015 results
For the 12 months ending June 30, 2015, Stanford University’s Merged Pool (MP) generated an investment return of 7 percent net of fees, the Stanford Management Company announced.
This result surpassed the portfolio’s composite benchmark return of 3.2 percent. It also surpassed the 4 percent median return of large endowments and foundations as reported by the Wilshire Trust Universe Comparison Service.
For the last 10 years, the Merged Pool generated an 8.7 percent annualized return net of fees, outperforming the composite benchmark by 0.7 percent per annum. The 10-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.
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.
Stanford University’s endowment rose in value by 3.6 percent over the past year to $22.2 billion as of Aug. 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 percent of the beginning-of-year endowment value. Budgeted endowment payout for fiscal year 2016 is $1.15 billion.
“The endowment increased as a result of the generosity of Stanford’s donors as well as positive investment returns, which were augmented by substantial growth in value of income-generating properties on Stanford’s lands,” said Randy Livingston, vice president for business affairs and chief financial officer. “The endowment continues to support the university’s research and education programs, including financial aid for undergraduate and graduate students.”