Yale University's endowment posts 3.4% fiscal-year return

Yale
Yale University's Harkness Hall

Yale University's endowment returned 3.4% for the fiscal year ended June 30, bringing the value to $25.4 billion. The endowment’s value dipped 0.8% from the year before.

For the 10 years ended June 30, Yale's endowment returned an annualized 8.1%, above broad market results for domestic stocks, which returned 7.5% annually, and domestic bonds, which returned 5.1% annually, said a news release from the New Haven, Conn., university. For the 20 years ended June 30, it returned an annualized 12.6%.

By asset class, Yale's 10-year annualized returns were venture capital, 15.9%; foreign equities, 13.7%; leveraged buyouts, 11.2%; domestic equities, 10.5%; natural resources, 6.1%; absolute return, 5.9%; and real estate, 4.9%.

One-year returns for the individual asset classes were not provided. Last year, Yale’s endowment returned 11.5%.

The endowment's target asset allocation for the fiscal year started July 1 is 22.5% absolute return; 16% venture capital; 15% each international equity and leveraged buyouts; 12.5% real estate; 7.5% each natural resources, and bonds and cash; and 4% domestic equity.