UConn Foundation's Endowment Pool Increases By $57 Million

STORRS, CT — Returns on the the UConn Foundation’s endowment pool reached 12.1 percent over the past fiscal year, increasing the university's endowment by $57 million for a total of $634 million, officials have said.

The numbers outperformed the UConn Foundation's long-term, inflation-adjusted return target and "outpaced many of UConn's peer universities, as reported so far, officials said.

Foundation senior vice president for finance and administration David Carney said the strong performance can be traced to "robust technology stock returns and certain diversification strategies."

Over the past five years, the Foundation's endowment pool has garnered an annualized return of 9.3 percent, generating $88 million in "spendable distributions" for UConn, officials said.

UConn's endowment consists of donated funds that are invested to help generate money for scholarships and fellowships, faculty, technology, experiential learning, student research opportunities, and "other programs benefiting the UConn community." The Foundation’s spending policies dictate that 4 percent of the pool is distributed each year to support the goals while "preserving the endowment purchasing power for future generations."

Officials said the university's goal is to build the endowment to $1.5 billion by 2032. That target is expected to be a key goal of UConn's new fundraising campaign, "Because of UConn," that is scheduled to launch in April.

The UConn Foundation manages the endowment in collaboration with two investment advisers and the investment committee of the foundation’s board of directors.