The University's Investment Management Company generated a return of 23.6 percent on its endowment portfolio for the 2011 fiscal year, according to a release from the Office of Communications this morning.
Columbia's endowment has been performing above market value for the last several years, but this year Columbia's gains have taken a leap past its peers in the Ivy League, including larger endowments like Harvard's, Yale's and Princeton's.
The University's endowment, valued at $7.8 billion as of June 30, 2011, represents a collection of money and financial assets that have been donated to the University for investment By the Columbia Investment Management Company, a subsidiary of the University.
University President Lee Bollinger attributed the impressive gains to to the University's record of "prudent investment management."
“The dedicated professionals and board of our investment management company have helped ensure that we maintain Columbia's forward momentum in both academic initiatives and long-term development," Bollinger said in a news release.
Last week Harvard announced a 21.4 percent gain for fiscal year 2011, bringing their endowment’s value up to $32 billion. Princeton's $17.1 billion endowment returned 22 percent for this fiscal year. Likewise Yale gained 22 percent, bringing its endowment to $19.4 billion.
Since taking a dip in 2009 with a 16.1 percent negative return, Columbia's endowment has exhibited steady growth. Last year, the University's investment portfolio showed an annualized return of 17.3 percent, hitting $6.5 billion.
While the fiscal year 2011 returns reflect normal market growth, Columbia's long-term gains are the real financial shining star. The school's 5, 7, and 10-year gains have all exceeded market portfolio indexes. Over the past decade, for example, the University has experienced returns of 9.9 percent, compared with the annualized S&P Total Returns of 2.7 percent for the same 10-year period.
"Our ability to achieve academic excellence in the highest tier with several peer institutions that have far larger endowments than our own has been greatly aided on our relative financial stability during these turbulent years," Bollinger said.
In comparison, Harvard has experienced a similar 10-year return, having gained 9.4 percent on its endowment. Harvard's endowment dropped to $26 billion in 2009, but rose to $27.6 billion in 2010 and $32 billion as of June 30 — a 15.9 percent gain on their part.
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