Yale University’s endowment, long known for its world-beating investment performance, reported a disappointing 0.8% return for the fiscal year ending June 30, the university announced Monday.
The value of Yale’s endowment fell from $42.3 billion on June 30, 2021, to $41.4 billion on June 30 of this year, after $1.6 billion of spending distributions to the operating budget, according to a statement.
The slump followed fiscal 2021’s record gains for the endowment, with a 40.3% net return on the university’s investments in that period.
Chief Investment Officer Matt Mendelsohn blamed the drop on turmoil in the world economy and warned of economic trouble ahead.
“In such a volatile year for the world’s financial markets, we are pleased to have protected Yale’s capital,” Mendelsohn said. “That said, we expect challenging times ahead as rising interest rates, inflation and the geopolitical environment provide stiff headwinds.”
Mendelsohn took the chief investment officer post last August, replacing legendary investment guru David Swensen, who died of cancer in May 2021.
The university has tapped record-breaking endowment gains in recent years to fund initiatives that include two new residential colleges and bolstering faculty and programs at its engineering school.
Contact Liese Klein at lklein@newhavenbiz.com.
