September 24, 2013 / 9:21 PM / 4 years ago

Yale University earns 12.5 pct return in FY 2013

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NEW YORK, Sept 24 (Reuters) - Yale University's endowment earned a 12.5 percent investment return for the year ending June 30, 2013, the university said on Tuesday.

The university's endowment value grew to $20.8 billion on June 30, 2013 from $19.3 billion on June 30, 2012.

The Connecticut-based university benefited from investment gains of $2.3 billion and spending distributions of more than $1.0 billion, it said in a statement.

Spending from the endowment for Yale's 2014 fiscal year is budgeted at $1.05 billion, representing approximately 35 percent of Yale's net revenues. According to the University, the endowment distributions to the operating budget have more than doubled in the last decade.

The equity-oriented portfolio has a 31 percent private equity allocation target for fiscal 2014. Absolute return makes 20 percent, real estate is 19 percent, foreign equity is 11 percent, natural resources is 8 percent, domestic equity makes 6 percent of the allocation target while bonds and cash make 5 percent of the portfolio.

Yale's endowment returned 11 percent per year over the 10 years ending June 30, 2013, according to the institution.

Relative to the estimated 7.8 percent average return of college and university endowments, over the past decade Yale's investment performance added $7.0 billion of value in the form of increased spending and enhanced endowment value.

During the 10-year period, the endowment grew from $11 billion to $20.8 billion, the university said.

Over the past two decades, Yale's endowment generated returns of 13.5 percent per year. Compared to the estimated 8.7 percent average return of college and university endowments, Yale's investment performance added $18.4 billion of incremental value. During the 20-year period, the endowment grew from $3.2 billion to $20.8 billion.

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