Harvard Endowment Grows to $53.2 Billion on Strong Earnings in a Turbulent Year

By Svea Herbst-Bayliss

BOSTON (Reuters) – Harvard's endowment fund, the world's largest university endowment, grew to $53.2 billion in fiscal 2024 thanks to strong investment returns, although endowment giving fell by a third as donors spoke out against the school's handling of anti-Semitism Campuses protested.

Harvard Management Co said Thursday it returned 9.6% in the fiscal year ended June 30. According to the annual report, the return exceeded the school's long-term goal of 8%.

A year earlier, the endowment returned 2.9% and totaled $50.7 billion.

The school invested 39% of its assets in private equity and 32% in hedge funds, and both portfolios “stood out for their strong performance,” NP “Narv” Narvekar, chief executive of Harvard Management, wrote in a letter. The school invested 14% in public stocks.

The returns of Ivy League schools like Harvard are closely watched because they were pioneers in investing money in hedge funds and private equity funds. They are being watched even more closely this year as there is unrest on campus over how schools have responded to rising anti-Semitism and anti-Muslim sentiment following the Hamas attack on Israel on October 7, 2023.

Several university presidents, including Harvard University's Claudine Gay, resigned amid mounting criticism from students, faculty and alumni, including big-name donors.

Columbia University reported a return of 11.5%, while Brown University posted an 11.3% gain in fiscal year 2024.

However, the returns from these Ivy League endowments pale in comparison to the performance of the S&P 500 stock index, which rose 22.7% in the 12 months ended June 30, 2024.

Narvekar said Harvard's tolerance for high-risk investments is lower than other private schools, but noted that Harvard approved a moderate increase in risk tolerance in 2021, which has had a positive impact on returns. “Discussions remain active with the university to determine whether future increases in risk tolerance are warranted,” he added.

The foundation distributed $2.4 billion to the school's operating budget, including financial support, teacher salaries and research initiatives.

The strong returns came despite a decline in endowment giving to $368 million compared to $561 million a year ago. However, ongoing donations rose 9% to $528 million, according to Harvard. A number of prominent donors, including hedge fund manager Kenneth Griffin, halted their donations amid the crisis.

“As the University dealt with long-standing challenges highlighted by the events of the past year, alumni and others demonstrated both their concern and concern for the future of the institution by receiving increasing support throughout the year.” , Harvard President Alan Garber wrote.

(Reporting by Svea Herbst-Bayliss; Editing by Leslie Adler)