The University of Notre Dame endowment pool returned 12.6 percent for the fiscal year ending June 30, according to Vice President and Chief Investment Officer Scott Malpass, and ended the year with a value of $11.8 billion, up from $10.4 billion at the end of the prior fiscal year.
The University benefited from spending distributions of $368 million for the fiscal year, with financial aid in the form of scholarships and fellowships being the largest area of spending at nearly one-third of the total. Another 18 percent of spending is dedicated to support professorships, with a similar amount supporting academic, religious and student programs. The remaining endowment funds support specific departments or programs or are available for general University purposes. Endowment pool distributions have increased 132 percent in the last decade, while preserving endowment purchasing power for future generations.
Notre Dame’s longer-term results are in the top tier of institutional investors. Over the past 20 years, the Notre Dame endowment pool achieved an annualized return of 10.7 percent compared to 6.5 percent for its internal strategic policy portfolio representing a passively indexed portfolio of similar assets, and compared to 5.9 percent for a 60/40 index blend of stocks and bonds. On this basis, the University’s actively managed investment program created value-added compared to the strategic policy portfolio return in the amount of $6.7 billion over the prior 20 years.
“I am delighted by these returns, which will continue to support the aspirations of our students and faculty in all areas of scholarship, financial aid, student life and research,” Malpass said.
Originally published by news.nd.edu on October 13, 2017.at