Endowment defies slump

While most other university endowments posted double-digit declines as the economy soured in 2000-2001, Yale’s endowment ended the fiscal year with a 9.2 percent return on its investments. Fund managers attributed the endowment’s performance to diversified asset allocation, strong active management and a value orientation. Last year’s increase boosted the total to $10.7 billion. For the 10 years ending June 30, 2001, the endowment returned an annualized 18.3 percent. As the endowment has grown over the past decade, from $2.6 billion, its contribution to the University’s revenues has doubled, now accounting for 28 percent of the total. Spending from the endowment in the current fiscal year is expected to reach $405 million, a 20 percent increase over the prior fiscal year.