After tough fiscal year, Brown’s endowment falls to $3.2 billion

THE VALUE of Brown University’s endowment fell 1.1 percent to $3.2 billion, the university announced this week.
THE VALUE of Brown University’s endowment fell 1.1 percent to $3.2 billion, the university announced this week.

PROVIDENCE – Following a challenging fiscal year, the value of Brown University’s endowment fell 1.1 percent to $3.2 billion, the university announced this week.
By the close of the fiscal year on June 30, the endowment distributed $166 million to the university, representing $18,500 per student and 18 percent of Brown’s operating budget.
Brown’s fiscal year return exceeded the preliminary return of its benchmark portfolio, which fell 2.2 percent, and Cambridge Associates’ preliminary mean and median returns for colleges and universities, which fell 2.9 percent.
The endowment has enjoyed success under current university leadership, growing to $3.2 billion from $2.6 billion since 2012, representing an 8 percent annualized return with more than $900 million in investment gains and more than $600 million contributed to the university’s budget in that time.
Endowment funds are used to support a number of areas, including financial aid, professorships, academic programs and research sources, among other essential activities.
In the current fiscal year, the endowment contributed $38 million to fund financial aid, which accounts for 34 percent of the undergraduate financial aid budget – the fastest growing area of the university’s overall budget for more than 25 years, Brown said.
Forty-two percent of students in the Class of 2019 received need-based scholarships, with an average award of $47,360.
“Brown’s spending policy for distributions from the endowment helps preserve the strength of the endowment while supporting financial sustainability, even during times of significant volatility such as the global financial market experienced this past year,” Barbara Chernow, Brown’s executive vice president for finance and administration, said in a news release. “The endowment supports Brown’s vital priorities in the areas of teaching, research and scholarship, as well as supporting generous financial support for students.”

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