Harvard University's $36B Endowment Rises 15.4% in 2014
As in-house bond managers and outside hedge funds teamed up to easily beat the portfolio's 14.6 percent benchmark return, Harvard University announced that its $36 billion endowment posted an increase of 15.4 percent throughout fiscal 2014.
The
endowment, overseen by Harvard Management Company Inc, grew to $36.4
billion in the fiscal year ended June 30 from $32.7 billion. That marked
a near-full recovery from losses posted during the financial crisis.
Still,
an overhang from underperforming illiquid private-equity investments
continue to weigh on the endowment's portfolio, HMC said in a press
release.
The
Ivy League school's endowment is the largest in the world and is now
valued roughly three times bigger than the annual gross domestic output
of Africa's Zimbabwe.
The
endowment's bond portfolio produced a 7.7 percent return in fiscal
2014, trouncing the 4.2 percent return on its benchmark. Its foreign
bonds were the stars, posting an 18 percent return against an 8 percent
return on the benchmark, HMC said. The entire fixed income portfolio is
managed internally.
Source: Business Insider