Name: Harvard Return on Endowment Lower than Expected
Uploaded: 2014-09-24
Duration: 1 min 35 s
Description: Harvard Return on Endowment Lower than Expected

Harvard's money isn't making Harvard enough money. At least according to the critics. The world's richest university trailed the pace set by some competitors this year. Harvard reported 15. 4 % in returns on endowments for 2014. Which according to the student newspaper, The Harvard Crimson. Falls behind MIT, Dartmouth, the University of Pennsylvania, and a few others' returns on endowments. And some aren't thrilled about that. Bloomberg quotes a hedge fund CEO as saying it's mediocre yet again. With the good people they have and the money to pay for the best, they should deliver better performance. But it's not necessarily all bad news. The value of endowment grew to 36. 4 billion dollars which is New York's record high of 36. 9 billion dollars in 2008, before the school lost an estimated 11 billion courtesy of the financial crisis. And posting anything positive is well a positive for Harvard. As the school searches for a replacement for Jane Mendillo, the president and chief executive officer of Harvard Management Company, who will step down at the end of the year. In a press release for Harvard Mendillo said that she was pleased by the return. And mentioned that 15. 4 % return exceeded the companies benchmark. Yale University yielded the best return on endowment, among the four Ivy league schools who release numbers so far, boasting a 22 % return. For the record, colleges typically need to earn at least 9 % on each year's investments to increase the endowment. Because they spend about 5 %, and you have to keep up with inflation. So, you know, it's not like any school on these lists is hurting