Harvard University reported an 11 percent gain earlier this month on its investments in the 2010 fiscal year, increasing its endowment by $1.4 billion to a total of $27.4 billion.
Tufts' own endowment increased by $110 million in fiscal year 2010, evidence that the university is on sounder financial ground after a 25 percent decrease in fiscal year 2009, according to Director of Public Relations Kim Thurler. Tufts' total endowment now stands at more than $1.252 billion, Thurler said.
This year's endowment gains, a 9.7 percent increase, signify an investment return rate of approximately 12 percent. The university sets the baseline goal of a 9 percent return rate, Thurler said.
Harvard's investment gains mark a major turnaround from the endowment's decline by 27.3 percent to $25.7 billion in fiscal year 2009.
Harvard Management Company, which manages Harvard's endowment, has produced an average annual return from the endowment of 7 percent over the last 10 years and 11.9 percent over the last two decades, according to the Harvard Gazette.
A Harvard spokesperson said that the public is often misinformed about the nature of university endowments.
"The Harvard endowment actually consists of more than 11,000 separate funds, and nearly three−fourths of these are designated for specific purposes," John Longbrake, Harvard's assistant vice president of communications, said.
Longbrake said the endowment's performance was crucial in ensuring financial support for Harvard's programs.
"Harvard spends more than $3 billion a year in support of teaching and research, and more than a third of this comes from interest earned on the endowment's performance," he said.
At Tufts, University President Lawrence Bacow said in a Sept. 8 e−mail to the Tufts community that the university's cautious financial management has ensured financial stability throughout the economic downturn.
"The last two academic years were inescapably overshadowed by financial concerns," Bacow said in the e−mail. "Fortunately, our tradition of careful financial management stood us in good stead last year."
Tufts will continue to monitor the financial situation before launching any major capital projects, Bacow said.
Chief Investment Officer Sally Duncan referred questions regarding Tufts' finances to the Office of Public Relations.
"Tufts is in a very solid position financially," Thurler said. "Our tradition of prudent financial management stood us in good stead during [the] economic downturn ... We have fared comparatively well relative to many of our peer institutions, as a result of our successful stewardship of resources."
