Key Takeaways
- • Yale University's $54.5 billion endowment earned a 26.3% net investment return for the fiscal year ending June 30, 2026, generating investment gains of $11.3 billion, according to the university.
- • Yale's 10-year annualized return reached 11.7%, with its median 10-year return exceeding college and university endowments by 1.6% per annum and typical 70/30 stock-bond portfolios by 2.7% per annum.
- • The return compares with a net return of 11.1% in fiscal 2025 and 5.7% in fiscal 2024.
- • Yale's federal excise tax liability tied to this year's return is estimated at roughly $900 million, versus about $300 million per year in 2025, as the 8% endowment tax takes effect in fiscal 2027.
- • Yale spent $16.3 billion from its endowment over the last decade, equal to 64% of the endowment's value at the start of the period.
Summary
Yale University's $54.5 billion endowment posted a 26.3% net investment return for the fiscal year ending June 30, 2026, producing investment gains of $11.3 billion, according to the university's news release issued October 27, 2026. Matt Mendelsohn, Yale's chief investment officer, said the company was "pleased to report this result, particularly at a time of uncertainty across the landscape of higher education." The result is a sharp improvement over prior years, following an 11.1% net return in fiscal 2025 and a 5.7% return in fiscal 2024.
Over the 10 years ending June 30, 2026, the endowment delivered an 11.7% annualized return. Yale said its median 10-year return exceeded college and university endowments by 1.6% per annum and surpassed typical 70/30 stock and bond portfolios by 2.7% per annum. The university's release did not disclose returns by asset class or actual asset allocations.
Yale spent $16.3 billion from its endowment over the last decade, or 64% of the endowment's total value at the beginning of that period. According to the university, nearly 75% of endowment funds were given by donors for specific purposes, including scholarships and research.
As previously reported by Pensions & Investments, Yale's endowment will become subject to the 8% federal excise tax applicable to private universities with endowment assets above $2 million per student, beginning in fiscal 2027. Yale anticipates its tax liability on this year's return will be roughly $900 million, well above its estimate of approximately $300 million per year in 2025, and has said the cost will rise as the endowment grows. Under Yale's spending policy, the return will be "incrementally incorporated into the operating budget over time," beginning with the fiscal 2028 budget starting July 1, 2027.
Over the 10 years ending June 30, 2026, the endowment delivered an 11.7% annualized return. Yale said its median 10-year return exceeded college and university endowments by 1.6% per annum and surpassed typical 70/30 stock and bond portfolios by 2.7% per annum. The university's release did not disclose returns by asset class or actual asset allocations.
Yale spent $16.3 billion from its endowment over the last decade, or 64% of the endowment's total value at the beginning of that period. According to the university, nearly 75% of endowment funds were given by donors for specific purposes, including scholarships and research.
As previously reported by Pensions & Investments, Yale's endowment will become subject to the 8% federal excise tax applicable to private universities with endowment assets above $2 million per student, beginning in fiscal 2027. Yale anticipates its tax liability on this year's return will be roughly $900 million, well above its estimate of approximately $300 million per year in 2025, and has said the cost will rise as the endowment grows. Under Yale's spending policy, the return will be "incrementally incorporated into the operating budget over time," beginning with the fiscal 2028 budget starting July 1, 2027.
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