Long-Term Growth of the Fund
Northwestern established the Investment Office to manage the University’s endowed funds. Today, the Investment Office is the fiduciary for the $13.7 billion Northwestern University Endowment Fund, or Long-Term Balanced Pool, which comprises nearly all of Northwestern’s investable assets.
The Long-Term Balanced Pool has grown from $956 million at the start of fiscal year 1992 to $13.7 billion as of June 30, 2023. The endowment’s growth over the past 32 years is the result of new gifts, University contributions, and capital appreciation, minus cumulative yearly spending.
In the years since Northwestern’s founding in 1851, alumni, parents, and friends have generously supported the University’s efforts to provide an unparalleled education for its students and to conduct cutting-edge research in a range of important areas. When gifts are designated to the endowment, Northwestern accepts responsibility for ensuring that these contributions fulfill and sustain their intended purposes in perpetuity.
The endowment is stewarded by the Investment Committee of the University’s Board of Trustees. Guided by the committee’s policies, the Investment Office invests in a widely diversified pool of assets. For the majority of the investments in the endowment, the Investment Office employs many of the world’s most successful outside managers. The Investment Office directly manages the small remainder of the endowment (about 8 percent), chiefly fixed income and cash holdings. The Investment Office is composed of 24 staff members, 13 of whom are investment staff.
In fiscal year 2023, the endowment disbursed $675 million in financial aid, support for academic programs, and other current operations. This amount represents approximately 23 percent of the University’s fiscal year 2023 operating expenses. Annual spending from the endowment has increased 15-fold since we implemented the Yale model, moving from a 60 percent stock / 40 percent bond portfolio to a diversified strategy with alternative investments, in fiscal year 1992.
FY92–FY23 Endowment Increases and Payout
Endowment Fund Assets as of June 30, 2023
($ in millions)