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Endowment Earns 12.1%
For the 2013 fiscal year (July 1, 2012 - June 30, 2013) the endowment posted a return of 12.1%, rising $247 million to $3.7 billion (after deducting the annual draw and adding in donations). Self-praise was abundant: Chief Investment Officer Pamela L. Peedin ‘89, Tuck ‘98, said, “This year’s returns are a strong result for Dartmouth,” and Trustee Richard H. Kimball ‘78, chair of the Board’s Investment Committee, noted the “robust year-end returns.”
However, Dartblog’s market advisor noted today that “the median foundation and endowment return was 11.28%, and a 60/40 stock/bond portfolio earned 12.0%.” Geez. For all the expense of a high-priced investment chief (Peedin earned $872,010 in 2012) and fancy new offices in Boston, we earned a whopping 0.1% over what we could have taken home from a plain vanilla index fund.
In the 2013 fiscal year, the College drew 5.4% from the endowment; that’s more than a full percentage point over Brown’s draw. No wonder we have had the slowest growing endowment in the Ivy League since 2000, after having the fastest growing endowment between 1990-2000.
At least we feel good about ourselves.
Addendum: Another savvy reader notes the returns on various various different indices: the S&P 500: 20.60%; the Russell 1000: 21.24%; the MSCI EAFE: 18.62%; the MSCI World: 18.58%.
Addendum: In 2000 the endowment was at $2.49 billion, and today, thirteen years later, it has reached $3.70 billion. That’s growth of 48.6% during a period of time when the Consumer Price Index rose 35.9%, for a net of 12.7% over 13 years. Do you think that we need more MBA’s on the Board of Trustees?
October 18, 2009
When Love Beckoned in 52nd Street
We were at San Francisco’s BIX last evening, enjoying prosecco, cheese, and a bit of music. A full year of inhabitation in Northern California has unraveled to me no decent venue for proper lounging, but…
October 9, 2009
D Afraid of a Little Competish
So our colleague and Dartblog writer Joe Asch informed me that the D has rejected our cunning advertising campaign. Uh-oh. The Dartmouth is widely known as a breeding ground for instant New York Times successes,…
September 4, 2009
How Regents Should Reign
As Dartmouth alumni proceed through the legal hoops necessary to defuse a Board-packing plan—which put in unhappy desuetude an historic 1891 Agreement between alumni and the College guaranteeing a half-democratically-elected Board of Trustees—it strikes one…
August 29, 2009
Election Reform Study Committee
If you are an alum of the College on the Hill, you may have received a number of e-mails of late beseeching your input for a new arm of the College’s Alumni Control Apparatus called…
August 23, 2009
Fare Thee Well, Tom Crady
And now Dean Tom Crady has precipitously announced his departure from the College after only 20 months on the job. How to read this? By way of background, prior to coming to Dartmouth, Crady had…
May 31, 2009
Kangaroo Court, Indeed
In an interview with The Dartmouth, alumni-elected trustee T.J. Rodgers ‘70 explained his reasons for declining to participate in future evaluations of trustees up for “re-election,” namely the “kangaroo court” nature of such discussion in…