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Endowments

Stanford University endowment ends year with 11.3% gain

Stanford Management Co. returned a net 11.3% for the fiscal year ended June 30, said a news release Thursday from Stanford University, Palo Alto, Calif.

The management company, which manages $26.5 billion in merged investment pools which include the university's endowment, Stanford Health Care and Lucile Packard Children's Hospital, said there were $3 billion in investment gains during the period.

"Our results were bolstered by significant value added above benchmark results in our public equity portfolios, where we have worked to upgrade our capabilities over the last three years," said Robert Wallace, CEO of Stanford Management, in the news release. "Performance in illiquid asset classes, including private equity, was strong in absolute terms but trailed our expectations in relative terms. Our efforts to reposition the illiquid asset classes are still in early stages and will require more time to complete."

The university did not provide benchmark information, but noted the fiscal year return exceeded the median 8.3% fiscal year return for U.S. colleges and universities, according to Cambridge Associates data.

For the five and 10 years ended June 30, the endowment returned an annualized net 9.4% and 6.3%, respectively. The endowment returned a net 13.1% for the fiscal year ended June 30, 2017.

The news release did not report the endowment's asset allocation or performance of individual asset classes or benchmark returns. The management company's annual report has yet to be released.

University spokesman E.J. Miranda declined to provide further information.