Endowment yields $60.4 million in program support in fiscal 2008

University Park, Pa.— Penn State’s endowment and similar funds generated $60.4 million in support for student aid, faculty chairs and professorships, research initiatives and other Penn State programs, according to a report to the Board of Trustees today (Sept. 19) by David E. Branigan, executive director of the University’s Office of Investment Management.

The total market value of Penn State’s endowment and similar funds stood at $1.62 billion as of June 30, 2008.

The increase in support is up $2.1 million from the previous year, and occurred in spite of a slight dip in the total market value of the University’s endowment and similar funds, caused primarily by slowing U.S. and world economies, Branigan noted. Penn State’s endowment totaled $1.67 billion at the close of fiscal 2007.

“The endowment’s diversified portfolio is designed to weather short-term fluctuations and generate positive returns over long periods of time,” he said. For example, the endowment’s overall market value has increased by 46 percent, or $509 million, since 2004, after providing cumulative program support of $284 million.

Philanthropy to Penn State in the form of endowed gifts, along with positive investment returns, account for this long-term growth. The University directs support from the endowment to purposes designated by donors.

About half of Penn State’s endowed assets are invested in public equities. The remainder are spread over a variety of fixed-income securities, real estate, private equities and other types of investments.

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.

 

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Last Updated March 19, 2009