I was on a call today about the most recent FY merged pool performance.
Some interesting items
The excise tax on endowments is really a tax on realized gains by the University (any realized gains the University has, not just realized gains in the endowment, the example they gave was returns on short term cash invested in money market funds are also subject to the tax) not a tax on the overall endowment since most of the endowment has no realized gain in any given year, "in a typical year" they expect this tax hit to total $300m-$400m.
Some other interesting facts about the merged pool from 7/1/15 to 6/30/26
$26b merged pool value on 7/1/15
$45.8b investment returns
$6.2 donations to the merged pool (typically gifts endowing something and less than total donations to the University)
$16.5b payouts for operations
$61.5b merged pool value on 6/30/26
payout for operations in 1991 was $99m
payout for operations for 2027 will be $2.2b
Some interesting items
The excise tax on endowments is really a tax on realized gains by the University (any realized gains the University has, not just realized gains in the endowment, the example they gave was returns on short term cash invested in money market funds are also subject to the tax) not a tax on the overall endowment since most of the endowment has no realized gain in any given year, "in a typical year" they expect this tax hit to total $300m-$400m.
Some other interesting facts about the merged pool from 7/1/15 to 6/30/26
$26b merged pool value on 7/1/15
$45.8b investment returns
$6.2 donations to the merged pool (typically gifts endowing something and less than total donations to the University)
$16.5b payouts for operations
$61.5b merged pool value on 6/30/26
payout for operations in 1991 was $99m
payout for operations for 2027 will be $2.2b
Eric
"the older we get the better we were"