Market Value Of Penn State Endowment More Than Doubles Over Five Years

March 17, 2000
Hershey, PA. -- The total market value of Penn State’s pooled endowment fund reached $790.7 million as of Dec. 31, 1999–more than double its value of five years ago. A report presented to the University’s Board of Trustees today (March 17) by the Treasurer’s office says that the $434 million increase in the pooled endowment fund over the past five years reflects both new gifts and reinvested earnings.

During the 1999 calendar year alone, the pooled endowment grew by $114 million. This increase consists of over $41 million in new gifts and $99 million in investment returns, offset by $26 million that the University directed to program support.

"We’re pleased to have such positive results from our long-term asset mix," said Associate Treasurer David E. Branigan. "Implementing the strategic asset allocation program is producing favorable results that are consistent with long-term investment objectives." Branigan cited Penn State’s pooled endowment, which produced a net return of 14.6 percent during the 1999 calendar year, as an example of the investment strategy’s success.

Penn State’s endowment fund is a pooled investment of gifts that provides the University with a source of income to help meet some of its most critical needs. The University holds endowed gifts in perpetuity, investing them and spending only a portion of the total return for each endowment’s designated purpose. The remaining return is added to the principal to protect it from inflation.

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Contacts:
Anne Danahy (814) 863-4512
Mike Bezilla (814) 863-4512