Brown’s $4.7 Billion Endowment Gains 12% Topping Yale, Harvard

(Bloomberg) -- Brown University gained 12.1% on its investments in the last fiscal year, lifting its endowment to $4.7 billion.

The increase exceeds Ivy League schools with larger endowments, including Harvard and Yale Universities, the University of Pennsylvania and Dartmouth College.

As a result of the performance, Brown said it plans to withdraw an additional $15 million to $20 million from the fund to support operations, according to a statement Thursday.

Institutions across higher education are facing revenue shortfalls due to the economic fallout from the Covid-19 pandemic. Many colleges have been forced to switch to online classes and some have refunded all or part of room and board fees.

U.S. endowments earned a median investment return of 2.6% last year, the lowest since fiscal 2016, according to the Wilshire Trust Universe Comparison Service. The funds broadly trailed the S&P 500, which returned 7.5%. Endowments typically seek to earn 7% on average a year to account for transfers to pay for university operations, along with inflation.

Brown led the Ivies in fiscal 2019. Three schools in the elite group have yet to report their results. The endowment at the Providence, Rhode Island-based school is led by Chief Executive Officer Joseph Dowling and Chief Investment Officer Jane Dietze.

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