Despite a record annual return on its endowment last fiscal year, the University's return on investment and total endowment still paled in comparison to some of its Ivy League peers.
The University's endowment was $1.9 billion with a 13.3 percent return for the 2005 fiscal year, which ended June 30.
During the same time period, Harvard University reported an endowment of $25.9 billion and an annual return of 19.2 percent, while Yale University reported an endowment of $15.2 billion with a return of 22.3 percent.
Princeton University's endowment stood at $11.2 billion after a 17 percent return, the Daily Princetonian reported. The University of Pennsylvania had an endowment of $4.3 billion and a return of 8.5 percent, according to the Daily Pennsylvanian. Cornell University's endowment was $3.2 billion following a 13.6 percent return, the Cornell Daily Sun reported.
Dartmouth College and Columbia University have not yet announced their endowment performance for the 2005 fiscal year, although both had endowments larger than Brown's last year.
Jessica Shedd, director of research and policy analysis at the National Association of College and University Business Officers, said rate of return for a year is useful in understanding endowment performance for a single fiscal year but that analysts generally look at the return over a 10-year period.
Shedd said schools with larger endowments typically have higher percentage returns. "They have the opportunity to make riskier investments, and they can afford outside consultants," she said. "Also, they can afford longer-term liquid investments that are generally higher performing. That's true long term - the correlation might not be true any single given year."
In the 2004 NACUBO Endowment Study available on the group's Web site, independent universities and colleges allocated 59.2 percent of their assets in equity and 21.3 percent in fixed income.
"They invest in everything from your basic fixed income and equity to the more alternative investment they've been getting more into - hedge funds as of late, as well as natural resources," Shedd said. "They're less into private equity and venture capital."
Harvard University$25.9 billion 19.2 percent
Yale University $15.2 billion 22.3 percent
Princeton University $11.2 billion 17 percent
University of Pennsylvania$4.3 billion 8.5 percent
Cornell University $3.2 billion 13.6 percent
Brown University $1.9 billion 13.3 percent
Sources: Harvard U., Yale U., Daily Princetonian, Daily Pennsylvanian, Cornell Daily Sun, Brown Investment Office
