Penn's endowment grew by 7.1% for the 2024 fiscal year ending June 30, increasing from $21 billion to $22.3 billion as of June 30, 2024, up from a 1.3% return rate in 2023.
The growth represents an improvement from the endowment's performance over the past several years. The endowment had a 1.3% return rate in the 2023 fiscal year and a less than 1% return for the 2022 fiscal year. This fund comprises over 8,800 individual endowments and provided nearly $1.1 billion in annual budgetary support for the institution in the 2024 fiscal year.
"Penn's endowment supports a wide range of purposes across the institution, with the significant majority of funds dedicated to student financial aid and instructional use," Office of University Communications Director of News and Media Amanda Mott wrote in a statement to The Daily Pennsylvanian.
Mott added their spending distributions from the endowment reached $1.1 billion — a new record and nearly $90 million greater than the year prior. She also wrote that annual spending distributions have increased by 248% over the past decade at an annualized rate of 13.3%.
According to the Penn Office of Investments website, the University's endowment has achieved a five-year annualized return of 9.6%, outpacing a composite benchmark. The endowment also has a 10-year annualized return of 8.7% and a 20-year annualized return of 8.4%.
A significant portion of Penn’s endowment is invested in the Associated Investments Fund, a pooled vehicle that aims to manage risk while providing stable, long-term returns. The AIF holds investments across various asset types, including short-term assets, equities, private equity, and real assets.
This diversification is overseen by the Office of Investments and the Investment Board, which includes Penn alumni and University leaders.
While a significant increase from the past two fiscal years, Penn's endowment still had lower investment gains than several related universities, including Brown and Columbia — both of which had returns over 11%.
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