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Local University Endowments Show Significant Growth in '05

Posted on: Monday, 23 January 2006, 15:00 CST

By Bill Schackner, Pittsburgh Post-Gazette

Jan. 23--While they're not nearly as well heeled as Harvard or Yale, Pittsburgh's largest universities saw significant growth last year in their endowments, according to a survey released today.

Endowments across the nation on average had an investment return of 9.3 percent, smaller than the 15.1 percent logged in 2004 but better than the 3 percent average gains seen in 2003, according to the National Association of College and University Business Officers. The latest investment returns are enough to cover educational spending, fees and other needs, the association said.

The University of Pittsburgh was the highest local campus on the list, ranked 30th out of 746 institutions based on endowment market value -- just behind New York University but ahead of Case Western Reserve University.

Pitt's endowment as of fiscal year 2005 stood at $1.5 billion, up by 12 percent from the previous year.

Penn State University ranked 44th. Its endowment market value was nearly $1.2 billion, up 11 percent from a year earlier, according to the survey that was done in conjunction with TIAA-CREF, a national financial services organization.

Carnegie Mellon University's endowment had a market value of $837.5 million, a gain of 9 percent. Duquesne University's endowment had a market value of $123.3 million, up 12 percent.

Income from endowments helps fund a wide array of campus programs. "It speaks to the financial health of an institution and its long term stability," said Jessica M. Shedd, the association's director of research and policy analysis

Nationally, Harvard University topped the survey. Its endowment had a market value of $25.5 billion, up 15 percent. Rounding out the top five were Yale, $15.2 billion; $12.2 billion; University of Texas System, $11.6 billion and Princeton, $11.2 billion.

In all, 56 schools had endowments worth more than $1 billion.

The market value in any given year is influenced by such factors as growth from gifts, reductions to cover expenses and return on investments, the association said.

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Copyright (c) 2006, Pittsburgh Post-Gazette

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Source: Pittsburgh Post-Gazette

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