The University endowment produced a 13.8-percent return in investment performance and experienced an 11-percent total value increase for fiscal 2010, according to an Oct. 14 BrandeisNOW press release.Senior Vice President for Finance and Chief Financial Officer Frances Drolette explained in an e-mail to the Justice that the endowment return reflects investment performance from fiscal 2009 to fiscal 2010, while the overall value increase includes both investment performance and gifts to the University after subtracting annual spending.

The press release cited conservative fixed-income investments, investments that yield a steady return; high portfolio manager performance resulting in greater investment returns; diligent operating budget cost management, and strong fundraising as reasons for the endowment growth.

This news comes after the University reported that fundraising efforts resulted in $72 million in donations, the sixth year in the past 10 that over $70 million was raised, according to an Aug. 11 BrandeisNOW press release. According to the Office of Development, the Board of Trustees proposed an endowment campaign goal of over $1 billion in May 2008 expected to be reached by 2013 or 2014.

As of June 30, the end of fiscal 2010, the endowment was valued at $620 million, according to an e-mail from Drolette. The endowment return underwent a noticeable turnaround from a 17-percent decline in endowment returns after the financial crisis of fiscal 2009. At a faculty meeting in October 2009, former Senior Vice President for Finance and Administration Jeffrey Apfel said that the total endowment for fiscal 2009 was approximately $580 million.

"The spending was below the budgeted amount, and the amount of current gifts utilized compared to [the] budget was greater so there was an opportunity to reduce the spending from the amount originally planned," Drolette wrote in an e-mail to the Justice.

According to Drolette, because spending was reduced, less of the overall endowment fund was used, resulting in the investment of more funds, which led to more investment return. Because the endowment is used for both current use funding and investment, this combination can lead to an overall larger endowment.

Senior Vice President of Institutional Advancement Nancy Winship explained in an Aug. 20 interview with the Justice that 5 percent of the endowment is available for use in the current use budget, while the rest of the funds are invested to further increase the value of the endowment.

Drolette explained in her e-mail to the Justice that as a result of the economic downturn, the University allotted 6 percent of the endowment for current use rather than the target of 5 percent. However, the endowment saw an increase because the University only spent 5.5 percent of the allotted 6 percent.

Drolette explained that the fiscal 2012 budget will include $42.5 million from the endowment, which is about 6.5 percent of the endowment fund.

According to the BrandeisNOW press release, the Cambridge Associates Endowment Universe completed a survey of over 400 institutions in which Brandeis ranked in the 22nd percentile in terms of endowment return.