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As of June 30, Penn’s donations totaled $22.3 billion. Credit: Chenyao Liu
Mr. Penn’s endowment grew 7.1% in the 2024 fiscal year ending June 30, from $21 billion to $22.3 billion as of June 30, 2024, up from a 1.3% return in 2023. .
This growth represents an improvement from the fund’s performance over the past several years. The fund had a return of 1.3% in fiscal year 2023 and less than 1% in fiscal year 2022. The fund is comprised of more than 8,800 individual gifts and provided the agency with nearly $1.1 billion in annual budget support in fiscal year 2024.
“Penn’s endowment supports a wide range of purposes across the university, with the majority of funds going toward student financial aid and educational use,” said Amanda, director of news and media in the university’s Office of Public Affairs. Mott said in a statement to the Daily Pennsylvanian.
Mott added that spending distributions from the endowment amounted to $1.1 billion. This was a new record and an increase of nearly $90 million over the previous year. She also wrote that the distribution of annual spending has increased by 248% over the past 10 years at an annual rate of 13.3%.
According to Penn Investments’ website, the university’s endowment has achieved an annualized return of 9.6% over five years, outperforming the overall benchmark. The fund has a 10-year annualized return of 8.7% and a 20-year annualized return of 8.4%.
A significant portion of Mr. Penn’s endowment is invested in the Associated Investment Fund, a consortium designed to manage risk while providing stable long-term returns. AIFs hold investments across a variety of asset types including short-term assets, equities, private equity and real assets.
This diversification is overseen by an investment office and an investment committee that includes Penn alumni and university leaders.
Even with a significant increase from the past two fiscal years, Penn’s endowment has had a lower return on investment than some of its affiliated universities, including Brown University and Columbia University, both of which had returns of more than 11%. Ta.
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