Endowment Surpasses $500 Million Mark

10-2-97
University Park, Pa. -- The market value of Penn State's endowment and similar funds reached $516 million as of June 30, 1997, according to a recent report by the University Treasurer's office.

The new all-time high total includes $474.5 million in the University's pooled endowment fund, which has more than doubled in the past five years, and non-pooled endowment and other funds totaling about $42 million. The increase in the pooled endowment reflects $24 million in new gifts and $86 million in investment returns in 1996-97. The total return rate was 21.4 percent-the best result in 11 years.

"Surpassing the $500 million mark is a significant milestone in the history of our endowment and similar funds," said Associate Treasurer David E. Branigan. "We have done so well in recent years because of sound investment strategies and the generosity of our alumni and friends. Positive trends in both of these areas allowed expenditures of $17 million for academic program support from the pooled endowment in 1996-97."

Endowments provide a source of income that Penn State can depend on to meet some of its most critical academic 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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