Trustees hear report on Penn State's endowment for 2012

UNIVERSITY PARK, Pa. -- Penn State's endowment and similar funds increased by $24 million in fiscal year 2012, and the total market value reached a record high of $1.86 billion as of June 30, 2012, according to a report to the Board of Trustees today (Sept. 14).

The University's endowment stood at $1.77 billion as of June 30, 2012. Similar funds, consisting of deferred gift assets such as charitable remainder trusts and gift annuities, stood at $90 million, for a total of $1.86 billion, according to David E. Branigan, executive director of the University's Office of Investment Management.

In a survey of 150 colleges and universities by Cambridge Associates, a consulting firm that provides comprehensive reviews to universities on their investment approaches, Penn State's endowment performance placed it near the top of the first quartile among its peers for actual endowment returns over one-, three-, and five-year periods ending June 30, 2012, Branigan noted. "The University's 12-month and three-year performances actually place it in the top 5 percent of institutions surveyed, so we continue to compare quite favorably with our peers," he said.

Showing a 20-year timeline for Penn State's endowment investment program, Branigan pointed out the long-term growth of the endowment's market value, from $250 million in 1992 to the current $1.86 billion in 2012, a nearly eightfold increase.

None of the annual payout from the University's endowment will be used to pay any fines or costs related to the Sandusky scandal.

The Penn State Investment Council, created by the Board of Trustees in response to the University’s increasing asset base and complex investment strategies, provides direct oversight of the endowment and long-term investment program. The council regularly reviews asset allocation, new asset classes, investment strategies and manager performance.

Last Updated September 14, 2012