The recession has taken a toll on businesses and individuals – but the University of Pennsylvania says the school has fared better than expected.
The recession has taken a toll on businesses and individuals – but the University of Pennsylvania says the school has fared better than expected. Penn officials say the return on the school’s endowment dropped almost 16% in the past fiscal year. The University had budgeted for a larger drop.
Credit: Courtesy of the University of Pennsylvania
Penn’s Executive Vice President Craig Carnaroli says the school’s endowment performed relatively well.
Carnaroli: Many of the illiquide asset classes – so private equity, real estate, natural resources, really slumped this year. and our allocations to them is less than our peers. We did well this year because of our asset allocation, because we maintained a sizeable portfolio in treasuries – you know 15%. And because we have a lower allocation to the illiquide asset classes.
With the economy still slumping, Penn is still preparing.
Carnaroli says the university has already saved $44 million dollars by canceling capital projects, reducing internal promotions and overtime, and using video conferencing to limit travel expenses. The goal is to save $58 million this fiscal year.