PROVIDENCE – The value of Brown University’s endowment fell 4.6% in fiscal 2022, its first decline in a decade, the Ivy League college said on Thursday.
The drop brought the total endowment down to $6.5 billion from $6.9 billion year over year. The return in the fiscal year that ended June 30 was well above the 6% median decline for colleges and universities amid steep global market declines.
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The loss followed a long period of growth, including fiscal 2021 which was one of the most exceptional single-year investment returns in school history at 51.5%.
“While recent years have been rich with opportunities to grow the Brown endowment, fiscal year 2022 proved to be a moment when the protection of assets was our paramount goal,” said Jane Dietze, Brown’s vice president and chief investment officer. “As the world grappled with continued negative impacts of the COVID-19 pandemic, new geopolitical conflicts, the highest inflation rates in decades and monetary tightening by central banks, markets delivered substantial losses across the board. Brown continued to outperform both broad indices and market-based benchmarks, and our long-term focus ensures that the endowment will provide critical funding for scholarships, research and other university priorities for generations to come.”
Brown said the endowment provided $207 million for the university’s operating costs during fiscal 2022, which was 16% of its operating budget. The funds were used for financial aid, professorships, academic programs, teaching and research.
Brown wasn’t the only Ivy League school to see its endowment shrink. Harvard University in Boston reported a 1.8% loss in fiscal 2022, dropping that university’s endowment to $50.9 billion.
