Managing Duke's Endowment Assets
During 2008-09, Duke's endowment, like investments across the globe, suffered significant losses. Between July 1, 2008, and June 30, 2009, the investment return on the university's endowment pool was negative 24.3 percent. Nonetheless, donor-funded endowments from the recent and distant past provided vital support for Duke people and programs in 2008-09, and these gifts will continue to do so for generations into the future.
Endowments are meant to ride out the rise and fall of many economic cycles and provide a permanent source of support for programs and services. Over the ten-year period ending June 30, 2009, the university's endowment assets earned an average of 10.1 percent per year – a cumulative increase in value that has outperformed peer institutions and made possible significant advances at Duke.
In response to endowment and investment declines and a projected slowing of other revenue streams, Duke officials are working to close an estimated $125 million budget shortfall over three years. Distributions from Duke University's endowment typically cover about 15 percent of its operating budget and are calculated by taking a percentage of the average value for the previous three calendar year-ends.
As of June 30, 2009, the market value of the university's endowment was $4.4 billion. Duke's endowment assets are managed by DUMAC, LLC, a professionally-staffed investment organization controlled by Duke University.