Qubit: Notre Dame Endowment Returns 2022
Notre Dame's endowment returned -6.9% for FY 2022. This is after its second-highest one-year return of 53.2% last year.
The endowment paid out $499 million to the school, of which 43% covers scholarships and fellowships.
Nearly half of the endowment portfolio is allocated to private equity at 48.5%. Admittedly, that's a highly illiquid portfolio.
“On the heels of the 53.2 percent investment return in 2021, the second-highest one-year return in its history, the Endowment Pool returned -6.9 percent for fiscal 2022. The effect of the sharp downturn in public equity markets, especially in the final quarter, was tempered by performance in private equity and multi-strategy portfolios, which outperformed their respective benchmarks for the year. Investment returns are once again the primary driver of the change in overall net assets given the proportion of the University’s assets held in the Endowment Pool.”
“Endowment payout totaling $499 million was distributed for spending during 2022, $466 million of which provided support for operating purposes with the remainder supporting campus infrastructure projects. As illustrated previously in Chart 1, annual payout from endowment constitutes the University’s largest individual source of operating revenues. Growth in endowment payout provides a key source of direct funding for financial aid and many other programs. However, given that nearly two-thirds of endowment payout carries a donor restriction that limits its use to a specific programmatic purpose, tuition revenue remains an important source of flexible operating revenue.
More than 40 percent of the endowment payout for 2022 directly supported scholarships and fellowships, which is critical to maintaining need-blind admissions and the University’s commitment to meet full undergraduate financial need.”
Source:
University of Notre Dame - Annual Report 2022
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