Report of the Treasurer
Fiscal year 2013 was a financially sound and stable year for Princeton University, a period in which it was able to build upon its consistently strong financial position. Net assets for the fiscal year ended June 30, 2013, increased by $1.3 billion, or 7.7 percent, due to solid investment gains as well as a healthy operating surplus. Total net assets of $18.7 billion at year-end have set a new high-water mark for Princeton.
A return of 11.7 percent from Princeton’s managed investment portfolio was on par with the highest-performing tier of large university endowments. The University’s Endowment spending rate of 4.7 percent in 2013 was just below the midpoint of the spending policy band established by its Board of Trustees, and in line with Princeton’s conservative fiscal management record. An operating surplus of $121 million, or 8.2 percent of total operating revenues, was achieved primarily through prudent management of operating expenses, as well as careful stewardship of the University’s resources.