Princeton University’s endowment earned a 5.6 percent gain for the fiscal year that ended on June 30. The endowment’s value stood at $26.6 billion at the end of the fiscal year, which is an increase of about half a billion dollars over the previous fiscal year.
The Princeton University Investment Co.(PRINCO), the university office that manages the endowment, certified the results during a meeting of its directors on Oct. 15.
The average annual return on the university’s endowment for the past decade is 10.6 percent, which places Princeton among the top percentile of 433 institutions listed by the Wilshire Trust Universe Comparison Service.
“Princeton has been fortunate to face the many financial challenges created by the COVID-19 pandemic from a strong budgetary position, thanks in part to an endowment that is the result of generations of generosity from alumni and friends, as well as effective stewardship and investment by the trustees and PRINCO,” Princeton University Provost Deborah Prentice said in a written statement. “The endowment will continue to be a crucial tool as we pursue our four key priorities in these challenging times: ensuring the health and well-being of our students, faculty and staff; restoring our teaching and research activities to normal operations, safely but as soon as possible; sustaining our commitments to access and affordability; and retaining and supporting our talented workforce.”
The endowment is made up of more than 4,000 funds that have been established since the university’s founding. School officials said endowment payouts and other investment income funds more than 60 percent of Princeton University’s operating budget. Endowment funds cover more than 80 percent of the undergraduate financial aid budget, and the endowment supports graduate students and their research.