{"id":186,"date":"2019-05-02T12:45:37","date_gmt":"2019-05-02T12:45:37","guid":{"rendered":"https:\/\/my.dev.vanderbilt.edu\/facultyengaged\/?p=186"},"modified":"2019-05-02T16:37:15","modified_gmt":"2019-05-02T16:37:15","slug":"can-you-explain-vus-endowment-returns","status":"publish","type":"post","link":"https:\/\/my.dev.vanderbilt.edu\/facultyengaged\/2019\/05\/02\/can-you-explain-vus-endowment-returns\/","title":{"rendered":"Can you explain VU\u2019s endowment returns?"},"content":{"rendered":"<p><img loading=\"lazy\" decoding=\"async\" class=\"size-medium wp-image-196 alignleft\" src=\"https:\/\/cdn-dev.vanderbilt.edu\/t2-my-dev\/wp-content\/uploads\/sites\/3005\/2019\/05\/Endowment-Picture21-300x194.png\" alt=\"Endowment Picture2\" width=\"300\" height=\"194\" srcset=\"https:\/\/cdn-dev.vanderbilt.edu\/t2-my-dev\/wp-content\/uploads\/sites\/3005\/2019\/05\/Endowment-Picture21-300x194.png 300w, https:\/\/cdn-dev.vanderbilt.edu\/t2-my-dev\/wp-content\/uploads\/sites\/3005\/2019\/05\/Endowment-Picture21.png 451w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/>Since endowments typically don\u2019t look at 11-year periods, I\u2019ll start with 10 years.\u00a0 Over the last 10 years, Vanderbilt\u2019s endowment has returned 4.9% per year.\u00a0 That ties for 301<sup>st<\/sup>\u00a0out of the 391 endowments reporting 10-year numbers reported by NACUBO.\u00a0 Among the 93 endowments with over $1 billion in assets under management, it ranks 84<sup>th<\/sup>.\u00a0 Although I\u2019ve only been at Vanderbilt a little over 5 years (so my information is limited), I\u2019d attribute that to having 3 different chief investment officers over a relatively short period of time.\u00a0 CIO changes tend to result in changes to the investment team and how the endowment is invested, and that incurs costs.<\/p>\n<p>Since it takes a couple of years to upgrade a team and a portfolio, I\u2019d highlight the last 3 years.\u00a0 Over that period of time, Vanderbilt\u2019s endowment has returned 6.3% per year, tied for 188<sup>th<\/sup>\u00a0out of the 429 endowments reporting 3-year numbers (top 45%).\u00a0 Among the 93 endowments with over $1 billion in assets, it ranks tied for 64<sup>th<\/sup>\u00a0(third quartile).\u00a0 Neither peer comparisons are great, but much improved relative to the 10-year figures.<\/p>\n<p>Over the last year (i.e., fiscal 2018), Vanderbilt\u2019s endowment returned 12.6%. That ranks 15<sup>th<\/sup>\u00a0out of the 442 endowments reporting a FY 2018 number (top 4%).\u00a0 Among the 93 endowments with over $1 billion, it ranks 7<sup>th<\/sup>\u00a0(top 10%).\u00a0 That outperformed some of our country\u2019s most elite research universities, including: Harvard, Yale, Stanford, Northwestern, Columbia, Notre Dame, Chicago, Washington University in St. Louis, Emory, Rice, Dartmouth, Pittsburgh, Tulane, and Rochester.<\/p>\n<p>So I think they key message is that we\u2019ve increased team and portfolio stability, and Vanderbilt\u2019s endowment performance is on a trajectory to be proud of.\u00a0 I hope that explanation helps.<\/p>\n<p>&nbsp;<\/p>\n<p><strong>Anders Hall<\/strong><\/p>\n<p>Vice Chancellor for Investments and CIO<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Since endowments typically don\u2019t look at 11-year periods, I\u2019ll start with 10 years.\u00a0 Over the last 10 years, Vanderbilt\u2019s endowment has returned 4.9% per year.\u00a0 That ties for 301st\u00a0out of the 391 endowments reporting 10-year numbers reported by NACUBO.\u00a0 Among the 93 endowments with over $1 billion in assets under management, it ranks 84th.\u00a0 Although&#8230;<\/p>\n","protected":false},"author":7973,"featured_media":196,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-186","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized"],"_links":{"self":[{"href":"https:\/\/my.dev.vanderbilt.edu\/facultyengaged\/wp-json\/wp\/v2\/posts\/186","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/my.dev.vanderbilt.edu\/facultyengaged\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/my.dev.vanderbilt.edu\/facultyengaged\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/my.dev.vanderbilt.edu\/facultyengaged\/wp-json\/wp\/v2\/users\/7973"}],"replies":[{"embeddable":true,"href":"https:\/\/my.dev.vanderbilt.edu\/facultyengaged\/wp-json\/wp\/v2\/comments?post=186"}],"version-history":[{"count":5,"href":"https:\/\/my.dev.vanderbilt.edu\/facultyengaged\/wp-json\/wp\/v2\/posts\/186\/revisions"}],"predecessor-version":[{"id":194,"href":"https:\/\/my.dev.vanderbilt.edu\/facultyengaged\/wp-json\/wp\/v2\/posts\/186\/revisions\/194"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/my.dev.vanderbilt.edu\/facultyengaged\/wp-json\/wp\/v2\/media\/196"}],"wp:attachment":[{"href":"https:\/\/my.dev.vanderbilt.edu\/facultyengaged\/wp-json\/wp\/v2\/media?parent=186"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/my.dev.vanderbilt.edu\/facultyengaged\/wp-json\/wp\/v2\/categories?post=186"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/my.dev.vanderbilt.edu\/facultyengaged\/wp-json\/wp\/v2\/tags?post=186"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}