The endowment of Harvard University returned 27.1% in the 2026 fiscal year, according to the university’s fiscal year 2026 report, released this week.
The world’s largest university endowment—managed by the Harvard Management Co.—grew to $68 billion at the end of June. In its report, the university attributed returns to venture capital, public equities, and hedge funds.
“FY26 represents a short-term return on a long-term portfolio. Nevertheless, it is reassuring to see it strengthen the endowment’s ability to support the University in the decades ahead,” said HMC CEO N.P. “Narv” Narvekar in a statement.
Harvard is also one of the few university endowments subject to a new federal excise tax on investment returns. Narvekar noted that the tax means that more will be required of the endowment to sustain the same level of support for the university.
During the fiscal year, the endowment distributed $2.6 billion to the university—approximately 30% of its operating revenue. Harvard noted that it had received $1.5 billion in philanthropic gifts, including $640 million intended for current use—the highest level of current use giving in a year in the university’s history.
The fiscal 2026 returns arrived “as the substantially higher federal excise tax on net investment income takes effect in FY27. Strong returns do not diminish the tax’s long-term cost: the tax will redirect a meaningful share of investment gains that would otherwise support teaching, research, financial aid, and other purposes designated by donors.”
As of June 30, the endowment allocated 46% of its portfolio to private equity (including 31% to venture and growth managers), 29% to hedge funds, 14% to public equities, 4% to real assets, 3% to bonds and Treasury Inflation-Protected Securities, 2% to other real assets, and 2% to cash.
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Tags: Harvard Management Co.