Dartmouth's endowment reached $3.7 billion after yielding an investment return of 12.1 percent during the 2013 fiscal year, the College announced on Thursday. The return exceeded the portfolio's benchmark of 10.3 percent.
As of June 30, the endowment experienced a net increase of $247 million compared with the previous year, representing $405 million in net investment gains and $27 million in new gifts, minus $185 million used amongst various programs, such as financial aid, academics, research, athletics and student affairs.
The return marks an increase from the 5.8 percent return in fiscal year 2012. The current endowment is still slightly lower than its $3.76 billion pre-recession value after fiscal year 2007, when it yielded a 23.7 percent return. Dartmouth's returns are consistent with that of other Ivy League schools, though only three other institutions released their numbers as of press time.
Yale University and the University of Pennsylvania both outperformed the College with returns of 12.5 percent and 14.4 percent, respectively. Harvard University saw a return of 11.3 percent. Dartmouth also outperformed the Massachusetts Institute of Technology, which reported an 11.1 percent return.
The S&P 500 index, which gauges the performance of U.S. equities, saw a 18.5 percent increase over roughly the same time period.
"The portfolio benefited from robust equity markets and particularly from excellent performance in venture capital and marketable alternative investments," chief investment officer Pamela Peedin '89 Tu '98 said in a statement.
The release reported that the College yielded an annualized 9.4 percent return over the last 15-year period, surpassing the S&P 500 index's annualized return of 4.2 percent.
Dartmouth looks to continue increasing the endowment returns in following years, Board of Trustees investment committee chair Richard Kimball '78 said.
"While we're always pleased with robust year-end returns, our endowment investment strategy takes the long view to ensure that Dartmouth's financial health is protected for generations to come," Kimball said in a statement. "We aim to further that goal in the coming year by continuing to develop relationships with world-class investment managers across regions and strategies."
Last year, the College saw the highest returns in the Ivy League. The endowment funds approximately 20 percent of Dartmouth's operating budget.
In addition to the endowment, the College received funding for the annual operating budget from philanthropic gifts totaling $163.8 million in the 2013 fiscal year.
