Report of the Treasurer
Fiscal year 2014 was a financially strong year for Princeton University, a period during which it continued to build upon its sound financial position. Net assets for the fiscal year ended June 30, 2014, increased by $2.8 billion, or 14.8 percent, due to impressive investment gains combined with a healthy operating surplus. Total net assets of $21.5 billion at year-end set a new high-water mark for Princeton.
A return of 19.6 percent from the managed investment portfolio places Princeton in the highest-performing tier of large university endowments over the long term. The University’s Endowment spending rate of 4.6 percent in 2014 was below the midpoint of the spending policy band established by its Board of Trustees, and on par with Princeton’s conservative fiscal management record. An operating surplus of $71.0 million, or 4.5 percent of total operating revenues, was achieved primarily through prudent management of operating expenses, as well as careful stewardship of the University’s financial resources.