耶鲁捐赠基金2020年（耶鲁投资办公室年度报告）

The Yale Endowment 2020

Endowment Highlights

Fiscal Year 2020 2019 2018 2017 2016

Market Value (in millions) $31,201.7 $30,314.8 $29,351.1 $27,176.1 $25,408.6 Return 6.8% 5.7% 12.3% 11.3% 3.4%

Endowment Market Value 1950–2020 $35

$30

$25

$20 Billions $15

$10

$5

Contents

1. Introduction 2

2. The Yale Endowment 3

3. Investment Policy 5

4. Spending Policy 18

5. Investment Performance 20

6. Management and Oversight 22

The Humanities

Quadrangle

The Humanities Quadrangle at 320 York Street (shown on the front cover) opened recently after extensive rehabilitation, which will make the former Hall of Graduate Studies a focal point for study in the humanities. Faculty, staff and students connected to eighteen different humanities units, once located at diverse campus locations, have occupied new, improved quarters designed to enhance formal and informal interaction. Resident departments below the coninclude Comparative Literature, Film and course includes the Media Studies, French, History, Judaic state-of-the-art Studies, Spanish and Portuguese, in addi- Alice Cinema and a tion to such units as the Whitney Lecture Hall Humanities Center. for guest speaker “The renovation of this building and programs. inclusive work of its planning represents a The tower, a significant institutional and human invest- distinctive feature ment in the humanities at Yale,” said of the Humanities Quadrangle since its original opening in 1932, is illustrated in the logo at top left, designed Kathryn Lofton, Faculty of Arts and by Kaleigh Kurpiewski. The tower has been Sciences dean of humanities. Professor reconditioned, thanks to a gift from Lisbet Christophe Schuwey of the French Rausing and Peter M. Baldwin ’78, and Department called the new facility a “major renamed Swensen Tower in honor of David commitment toward the humanities,” which Swensen ’80 PhD, ’14 LHD, Yale’s Chief “will definitely foster conversation and col- Investment Officer since 1985 (in photo, far laboration” among departments and indi- left). The commemorative plaque located viduals. Doctoral candidates spoke enthusi- near the base of the tower on the ground astically of the “thoughtful” and “function- floor was designed and created by 2010 al” nature of the design and layout as well as MacArthur Fellow Nick Benson, a stone the equipping of spaces. carver from The John Stevens Shop whose The Humanities Quadrangle offers work appears in other Yale locations. Shown expanded office facilities, social areas and at center is the interior ground-floor gateclassrooms, while the newly excavated level way, which dates to the original structure.

Introduction Yale’s Endowment generated a 6.8% return, net of fees, in fiscal 2020. 1 Over the past ten years, the Endowment grew from $16.7 billion to $31.2 billion. With annual returns of 10.9% during the ten-year period, the Endowment’s performance exceeded its benchmark and outpaced institutional fund indices. For three of the past ten years, Yale’s ten-year record ranked first in the Cambridge Associates universe. Spending from the Endowment grew during the last decade from $1.1 billion to $1.4 billion, an annual growth rate of 2.6%. Next year, spending will amount to $1.5 billion, or 36% of projected revenues. Yale’s spending and investment policies provide substantial levels of cash flow to the operating budget for current scholars, while preserving Endowment purchasing power for future generations.

David F. Swensen ’80 PhD, ’14 LHD Chief Investment Officer

Carrie A. Abildgaard Endowment Growth Outpaces Inflation 1950–2020 Director $35

$30

$25

Billions $20

$15

$10

$5

The Yale Endowment Totaling $31.2 billion on June 30, 2020, the Yale Endowment contains 2 thousands of funds with various purposes and restrictions. Approximately 82% of funds constitute true endowment, gifts restricted by donors to provide long-term funding for designated purposes. The remaining funds represent quasi-endowment, monies that the Yale Corporation chooses to invest and treat as Endowment. Donors frequently specify a particular purpose for gifts, creating endowments to fund professorships, teaching and lectureships (24%), scholarships, fellowships and prizes (18%), maintenance (4%), books (3%) and miscellaneous specific purposes (27%). Twenty-four percent of funds are unrestricted. Eighteen percent of the Endowment benefits the overall university, with remaining funds focused on specific units, including the Faculty of Arts & Sciences (34%), the professional and arts schools (25%), the library (7%) and other entities (16%). Although distinct in purpose or restriction, Endowment funds are commingled in an investment pool and tracked with unit accounting much like a large mutual fund. Endowment gifts of cash, securities or property are valued and exchanged for units that represent a claim on a portion of the total investment portfolio. In fiscal 2020 the Endowment provided $1.4 billion, or 34%, of the university’s $4.3 billion operating income. Other major sources of revenues were medical services of $1.1 billion (27%), grants and contracts of $837 million (20%), net tuition, room and board of $388 million Alexander C. Banker (9%), gifts of $160 million (4%) and other income and transfers of $318 Director million (7%).*

Endowment Fund Allocation Operating Budget Revenue Fiscal Year 2020 Fiscal Year 2020

Other Incomes Books and Transfers Maintenance Gifts Unrestricted Tuition, Scholarships Room & Board Endowment

Professorships Miscellaneous Medical Services Specific Purposes Grants and Contracts

• Numbers do not sum to 100% due to rounding. 3

Diversity and Inclusion

Even as the Yale Investments Office you recruit and train your junior analysts. sionals in the Yale Investments Office, works to improve the diversity of its staff, Why not hire directly from college cam- your firm and beyond. the Office is asking its fund managers to puses? Colleges and universities are richly I hope you will join me in making a address the lack of diversity in the asset diverse. Many students have little knowl- serious effort to improve the diversity of management industry. As part of this edge of career options outside of invest- the asset management industry. effort, in October 2020 Chief Investment ment banking and consulting. You would Sincerely, Officer David Swensen sent a letter to all be doing a great service by introducing David Swensen of Yale’s active U.S.-based investment them to the fascinating profession of Chief Investment Officer managers, enlisting their help in improv- investment management. ing diversity and asking managers to pro- At first glance, it might appear diffi- Fund manager response to Yale’s letter vide the Investments Office with data on cult to train recent college graduates, was overwhelmingly positive, with many diversity in their teams. In addition, instead of outsourcing the training to managers agreeing about the importance Investments Office staff are engaged in investment banks or consulting firms. of diversity and applauding Yale’s ongoing discussions with fund managers Yet, since much of your work is specific to approach. Several partners shared specific to learn about the managers’ approach to your firm’s approach to managing assets, initiatives that they pursue to improve diversity, discuss best practices, share you are already doing much of the train- diversity within their organizations. Some learnings and gather feedback. ing for the individuals you hire. of Yale’s private equity partners have dediOne of the most effective ways to cated senior resources to help accelerate David Swensen’s Letter learn about investing is through an old- diversity and inclusion initiatives within fashioned apprenticeship. Shadowing their firms and across their portfolio comOver the years, my colleagues and I have experienced colleagues and absorbing panies. Several managers, particularly had opportunities to discuss diversity and their approach to analyzing opportunities smaller firms that lack the resources to inclusion with you. From those conversa- provide a solid foundation for a career in hire stand-alone diversity-focused staff, tions, I know you care about this topic. I asset management. Close mentorship and highlighted the importance of strategic write now to enlist your cooperation in training introduce junior analysts to the partnerships for recruiting purposes. A taking a more systematic approach to the firm’s ethos, a critical element in creating number of managers highlighted successproblem of the lack of women and a cohesive firm. The hard skills and soft es in attracting diverse candidates to their minorities in the asset management skills necessary to succeed are best trans- internship programs, with the expectation industry. mitted by senior members of the firm to that those interns will return in analyst or Our goal is a level of diversity in the new hires. associate roles in the future. One manager investment management firms that Hiring and training a more diverse launched an internship program as a reflects the diversity in the world in which group of analysts is only a starting point. result of Yale’s letter. Several firms have we live. Genuine diversity remains elu- Providing a clear career path with conducted workshops and programs sive, giving investors like Yale and your advancement opportunities increases around inclusion, anti-racism, implicit firm an opportunity to drive change. retention rates and facilitates entry into bias and ethics to promote ongoing eduSuccess will be measured by hiring, train- the leadership ranks of the firm. cation on these topics. ing, mentoring and retaining women and To monitor progress, I am asking all minorities for positions on the investment of our managers to complete the attached teams at Yale and in your firm. survey regarding diversity by October 31. As a starting point, I would like to We are interested in the numbers of emphasize the importance of entry-level diverse professionals on the investment positions. By and large, the number of team and in your support functions, at experienced investment professionals is various levels of seniority. We will not fixed. We do not solve the larger problem share firm-specific data outside of Yale. I of underrepresentation by recruiting plan on asking you for annual updates. diverse candidates from other investment My colleague Lisa Howie will coordinate organizations. Such position shuffling is a the survey. Please contact me or Lisa with zero-sum game, doing nothing to any questions. improve diversity of the overall industry. You will note that we are not asking Yet, if we hire and train diverse individu- about firm ownership as a factor in measals early in their careers, we can expand uring diversity. Ownership per se does the numbers of talented, diverse invest- not necessarily relate to having a diverse ment management professionals. investment team and does not directly Many of you report that the pools measure progress toward the goal we from which you recruit are not diverse. In hope to achieve, namely much larger response, I suggest a rethinking of how numbers of diverse investment profes-

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Investment Policy Yale’s portfolio is structured using a combination of academic theory and 3 informed market judgment. The theoretical framework relies on meanvariance analysis, an approach developed by Nobel laureates James Tobin and Harry Markowitz, both of whom conducted work on this important portfolio management tool at Yale’s Cowles Foundation. Using statistical techniques to combine expected returns, variances and covariances of investment assets, Yale employs mean-variance analysis to estimate expected risk and return profiles of various asset allocation alternatives and to test sensitivity of results to changes in input assumptions. Because investment management involves as much art as science, qualitative considerations play an extremely important role in portfolio decisions. The definition of an asset class is subjective, requiring precise distinctions where none exist. Returns, risks and correlations are difficult to forecast. Historical data provide a guide, but must be modified to recognize structural changes and compensate for anomalous periods. Quantitative measures have difficulty incorporating factors such as market liquidity or the influence of significant, low-probability events. In spite of the operational challenges, the rigor required in conducting mean-variance analysis brings an important perspective to the asset Amy M. Chivetta allocation process. Director The combination of quantitative analysis and market judgment employed by Yale produces the following portfolio:

June 2020 June 2020 Asset Class Actual Target

Absolute Return 21.6 % 23.5 % Domestic Equity 2.3 2.25 Foreign Equity 11.4 11.75 Leveraged Buyouts 15.8 17.5 Natural Resources 3.9 4.5 Real Estate 8.6 9.5 Venture Capital 22.6 23.5 Cash & Fixed Income 13.7 7.5

Alan S. Forman At its June 2020 meeting, Yale’s Investment Committee adopted changes Director to the university’s policy portfolio allocations. The Committee approved increases in the venture capital target from 21.5% to 23.5%, in the leveraged buyout target from 16.5% to 17.5%, in the absolute return target from 23% to 23.5% and in the cash and fixed income target from 7% to 7.5%. The Committee approved decreases in the foreign equity target from 13.75% to 11.75%, in the natural resources target from 5.5% to 4.5%, in the real estate target from 10% to 9.5% and in the domestic equity target from 2.75% to 2.25%. Over the longer term, Yale seeks to allocate approximately one-half of the portfolio to the illiquid asset classes of leveraged buyouts, venture capital, real estate and natural resources. Providing resources for current operations and preserving purchasing power of assets dictate investing for high returns, causing the Endowment to be biased toward equity. The university’s vulnerability to inflation further directs the Endowment away from fixed income and R. Alexander Hetherington ’06 toward equity instruments. Hence, more than 90% of the Endowment Director is targeted for investment in assets expected to produce equity-like 5

returns, through holdings of domestic and international equities, absolute return strategies, real estate, natural resources, leveraged buyouts and venture capital. Over the past three decades, Yale dramatically reduced the Endowment’s dependence on domestic marketable securities by reallocating assets to nontraditional asset classes. In 1990, 65% of the Endowment was targeted to U.S. stocks and bonds. Today, target allocations call for 9.75% in domestic marketable securities and cash, while the diversifying assets of foreign equity, absolute return, real estate, natural resources, Lisa M. Howie ’00, ’08 MBA leveraged buyouts and venture capital dominate the Endowment, repreDirector senting 90.25% of the target portfolio. The heavy allocation to nontraditional asset classes stems from their return potential and diversifying power. Today’s actual and target portfolios have significantly higher expected returns than the 1990 portfolio with modestly higher volatility. Alternative assets, by their very nature, tend to be less efficiently priced than traditional marketable securities, providing an opportunity to exploit market inefficiencies through active management. The Endowment’s long time horizon is well suited to exploit illiquid, less efficient markets.

An entrance to the Presidents’ Room in the completely renovated Schwarzman Center. 6

Yale Investments Office Staff

The Endowment is managed by a team er science. The common thread among investment strategies, and building of investment professionals at the Yale all analysts is a devotion to higher edu- financial models. They assist in the Investments Office. To keep pace with cation and to Yale, a curiosity about screening, selection and monitoring of the increasing Endowment value, the investing and the desire to explore fund managers through background investment team has grown over the those interests in an entrepreneurial, research, manager meetings and portfopast thirty years and today consists of hands-on organization. lio analysis. In line with Yale’s belief in thirty-two professionals, including a The Investments Office’s analysts the centrality of external managers to the team of analysts and an experienced sen- generally begin working for the investment management process, anaior staff. Each year, the Office hires stu- Endowment with little or no portfolio lysts travel the world to meet managers dent interns, who rank among the most management experience. Focused men- in person to build and strengthen longimpressive Yale College students. torship and extensive on-the-job training standing investment relationships. develop the analysts’ investment abilities. Senior Staff The senior staff at the Yale The collaborative, flat structure of the Interns The Yale Investments Office Investments Office drive the decisions Investments Office exposes analysts to hires student interns during the academic and overall direction of the university’s the philosophy and thought process of term and summer. Interns add horseEndowment. Led by David Swensen, Chief Investment Officer David Swensen power to the Office’s capacity and senior staff members focus their atten- and the rest of the team starting from strengthen the connection between the tion on key endowment management day one. In their early years, analysts Office staff and the university. At the issues, including setting asset allocation, develop quantitative skills, qualitative Investments Office, interns rotate conducting deep portfolio reviews and skills and investment instincts. In addi- through all of the asset class teams, gaininvestigating topics like liquidity analysis tion, all analysts at the Investments ing exposure to a wide range of investor technology exposure. In addition to Office prepare and sit for the Chartered ment strategies and assisting in the leading broad portfolio projects, senior Financial Analyst (CFA) examination. screening and monitoring of funds staff members serve as the crucial link As investment analysts develop through research, performance evaluabetween Yale and its external managers: financial literacy and analytical tools, tion and participation in manager meetthey work on sourcing, evaluating, they receive broad exposure to the ings. They work on a wide variety of selecting and monitoring funds; they investment process and various facets of strategic projects, such as analyzing mannegotiate with managers on issues such Yale’s portfolio. Analyst functions ager performance, industry benchmarks as fund raising and fee structures; and include assessing investment perform- and new investment opportunities. they collaborate on discussions regard- ance, examining the allocation of funds ing organizational development. across different asset classes and Consistent with the Office’s emphasis on teamwork and mentorship, senior staff members involve their junior colleagues in research, analysis and portfolio management. Such sharing breeds a culture of spirited, intellectual discussion and encourages analysts to engage in the decision-making process early in their careers. Early responsibility prepares junior staff to take on larger roles, enabling the Investments Office to promote from within. Six current directors joined the office directly from college, including one who has remained with the Office for nearly thirty-five years. (Two directors joined directly from business school.)

Investment Analysts Investment analysts perform much of the Endowment’s essential analysis. Yale’s analysts come from a variety of academic back- Yale Health is housed in this building on Lock Street, which opened in 2010. The sevengrounds, ranging from students who foot-tall bronze statue near the building honors William “King” Lanson, a New Havener majored in history and biology to those who helped build the modern city. Born into slavery in the 1770s, he was a local leader and with degrees in economics and comput- businessman until his death in 1851.

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Asset Class Yale’s eight asset classes are defined by differences in their expected Characteristics response to economic conditions, such as economic growth, price inflation or changes in interest rates, with weights in the Endowment portfolio determined by risk-adjusted returns and correlations. The university combines the asset classes in such a way as to provide the highest expected return for a given level of risk, subject to fundamental diversification and liquidity constraints. The capital markets assumptions detailed for each asset class below incorporate assumptions about the university’s ability to add value through active management.

Absolute Return In July 1990, Yale became the first institutional investor to define absolute return strategies as a distinct asset class, beginning with a target allocation of 15.0%. Designed to provide significant diversification to the Endowment, absolute return investments are expected to generate high long-term real returns by exploiting market inefficiencies. The portfolio is invested in two broad categories: event-driven strategies and value-driven strategies. Event-driven strategies rely on a specific corporate event, such as a merger, spin-off or bankruptcy restructuring, to achieve a target price. Value-driven strategies involve hedged positions in assets or securities with prices that diverge from their underlying economic value. Today, the absolute return portfolio is targeted to be 23.5% of the Endowment, above the average educational institution’s allocation of 20.0% to such strategies. Absolute return strategies are expected to generate a real return of 3.5% with risk of 7.0%. The Barclays 9 to 12 Month Treasury Index Matthew S.T. Mendelsohn ’07 serves as the portfolio benchmark. Director Absolute return investments have historically provided returns largely independent of overall market moves. Over the past twenty years, the portfolio exceeded expectations, returning 8.1% per year with low correlation to domestic stock and bond markets.

Domestic Equity Equity owners reasonably expect to receive returns superior to those produced by less risky assets such as bonds and cash. The predominant asset class in most U.S. institutional portfolios, domestic equity represents a large, liquid and heavily researched market. While the average educational institution invests 21.7% of assets in domestic equities, Yale’s target allocation to this asset class is only 2.25%. The domestic equity portfolio has an expected real return of 6.0% with a standard deviation of 17.0%. The Wilshire 5000 Index serves as the portfolio benchmark. Despite recognizing that the U.S. equity market is highly efficient, Yale elects to pursue active management strategies, aspiring to outperform the market index by a few percentage points, net of fees, annually. Because superior stock selection provides the most consistent and reliable opportunity for generating attractive returns, the university favors managers with exceptional bottom-up, fundamental research capabilities. Yale’s domestic equity portfolio has posted returns of 9.7% per year over the past twenty years.

John V. Ricotta ’08 Director 8

Foreign Equity Foreign equity investments give the Endowment exposure to the global economy, providing diversification and the opportunity to earn outsized returns through active management. Yale allocates 5.25% of its portfolio to foreign developed markets and 6.5% to emerging markets. Yale’s foreign equity target allocation of 11.75% stands below the average endowment’s allocation of 19.8%. Expected real returns for emerging equities are 11.0% with a risk level of 23.0%, while developed equities are expected to return 8.0% with risk of 20.0%. The portfolio is benchmarked against a composite of developed markets, measured by the msci Europe, Australasia and Far East (eafe) Investable Market Index, and emerging markets, measured by a blend of the msci Emerging Markets Investable Market Index and the msci China A Share Investable Market Index. Yale’s investment approach to foreign equities emphasizes active management designed to uncover attractive opportunities and exploit market inefficiencies. As in the domestic equity portfolio, Yale favors managers with strong fundamental research capabilities. Capital allocaTimothy R. Sullivan ’86 tion to individual managers takes into consideration the country allocaDirector tion of the foreign equity portfolio, the degree of confidence that Yale possesses in a manager and the appropriate size for a particular strategy. In addition, Yale attempts to exploit mispricings in countries, sectors and styles by allocating capital to the most compelling opportunities. Twentyyear returns for Yale’s foreign equity portfolio stand at 14.8% per year.

Leveraged Buyouts Leveraged buyouts offer extremely attractive long-term risk-adjusted returns, stemming from the university’s strong stable of managers that exploit market inefficiencies. The university’s target allocation to leveraged buyouts of 17.5% far exceeds the 8.4% actual allocation of the average educational institution. The leveraged buyout portfolio is expected to generate real returns of 8.6% with risk of 21.1%. Yale’s leveraged buyout strategy emphasizes partnerships with firms that pursue a value-added approach to investing. Such firms work closely with portfolio companies to create fundamentally more valuable entities, relying only secondarily on financial engineering to generate returns. Investments are made with an eye toward long-term relation-

Xinchen Wang ’09 Director

In the nave of Sterling Memorial Library, temporary shelving holds the books requested for pick-up by students and faculty members during the partial closing of campus buildings in 2020. 9

ships—generally, a commitment is expected to be the first of several— and toward the close alignment of the interests of general and limited partners. Over the past twenty years, the leveraged buyout program has earned 11.2% per annum.

Natural Resources Equity investments in natural resources—oil and gas, timberland and agriculture—share common risk and return characteristics: protection against unanticipated inflation, high and visible current cash flow and opportunities to exploit inefficiencies. At the portfolio level, natural resource investments provide attractive return prospects and significant diversification. Yale has a 4.5% policy allocation to natural resources with expected real returns of 8.5% and risk of 24.0%. Yale’s policy allocation is below the 6.6% natural resources allocation of the average endowment. Superior operators have demonstrated the ability to generate excess returns through market cycles. Over the past twenty years, Yale’s natural resources portfolio has generated an impressive 13.6% per annum.

Real Estate Investments in real estate provide material diversification to the Endowment. A steady flow of income with equity upside creates a natural hedge against unanticipated inflation without sacrificing expected return. Yale’s 9.5% policy allocation significantly exceeds the average endowment’s commitment of 3.6%. Expected real returns are 5.5% with risk of 16.0%. While real estate markets sometimes produce dramatically cyclical returns, pricing inefficiencies in the asset class and opportunities to add value allow superior managers to generate excess returns over long time horizons. Twenty-year returns for the portfolio stand at 8.3% per annum.

Venture Capital Venture capital investments produce compelling option-like returns, as the university’s premier venture managers provide exposure to innovative start-up companies from an early stage. Yale’s target venture capital allo-

Daniel J. Otto ’12 Associate Director

A sign on York Street encouraging social distancing on campus. 10

cation of 23.5% exceeds the 7.7% actual allocation of the average educational institution. The venture capital portfolio is expected to generate real returns of 12.3% with risk of 37.8%. Yale’s venture capital program, one of the first of its kind, is regarded as among the best in the institutional investment community; the university is frequently cited as a role model by other investors. Yale’s venture capital managers field strong, cohesive and hungry teams with proven ability to identify opportunities and support talented entrepreneurs. The university’s venture capital portfolio contains an unparalleled set of manager relationships, significant market knowledge and an John T. Ryan ’14 extensive network. Over the past twenty years, the venture capital proAssociate Director gram has earned 11.6% per annum.

Cash and Fixed Income Fixed income assets generate stable flows of income, providing more certain nominal cash flow than any other Endowment asset class. The fixed income portfolio exhibits a low covariance with other asset classes and serves as a hedge against financial crises. While the typical educational institution’s allocation to fixed income and cash instruments is 12.2%, Yale’s target allocation to fixed income and cash is 7.5%. Short-term bonds have an expected real return of 0.0% with risk of 3.0%. The Barclays Capital 6 to 12 Month U.S. Treasury Index serves as the portfolio benchmark. Yale is not particularly attracted to fixed income assets, as they have the lowest expected returns of the eight asset classes that make up the Endowment. In addition, the government bond market is the most efficiently priced asset class, offering no opportunities to add significant value through active management. Based on skepticism of active fixed Celeste P. Benson income strategies and belief in the efficacy of a highly structured Senior Portfolio Manager approach to bond portfolio management, the Investments Office chooses to manage Endowment bonds internally. Over the past twenty years, the fixed income portfolio has generated returns of 3.7% per annum.

Asset Allocations Yale Educational as of June 30, 2020 University Institution Mean

Absolute Return 21.6 % 20.0 % Domestic Equity 2.3 21.7 Foreign Equity 11.4 19.8 Leveraged Buyouts 15.8 8.4 Natural Resources 3.9 6.6 Real Estate 8.6 3.6 Venture Capital 22.6 7.7 Cash & Fixed Income 13.7 12.2

Michael Knight Senior Business Associate 11

Investments Office Alumni

While Yale Investments Office alumni have pursued careers in fields ranging from investment management to business to government to law, a significant number have gone on to serve in investment leadership positions at endowments or foundations. Fourteen Investments Office alumni currently hold or have held the title of chief investment officer in the nonprofit world.

Peter Ammon ’05 MA, ’05 MBA serves as Penn’s chief investment officer. Prior to joining Penn in July 2013, he worked at the Yale Investments Office. At Yale, Peter was also a senior faculty fellow at the Yale School of Management, where he co-taught a class on endowment management. Prior to his time at Yale, Peter worked at the Princeton University Investment Company. Peter has served on a number of nonprofit investment committees, including most recently at The Philadelphia School. Peter holds an AB in Politics from Princeton, an MA in International Relations from Yale University and an MBA from Yale University. Seth D. Alexander, President, MIT Peter Ammon, Chief Investment Investment Management Company Officer, University of Pennsylvania “I cannot imagine a better place to have “My memories of the Yale Investments learned the investment business than the Office inevitably begin with the people. The Yale Investments Office with its exceptional Office has always been an extraordinary leadership, fabulous team and standard- group, and I feel incredibly fortunate to have setting investment thinking.” been surrounded by colleagues who were not Seth Alexander ’95 is president of the only friends and mentors, but people from MIT Investment Management Company whom I learned every day.” (MITIMCo), a division of the Massachusetts Institute of Technology. MITIMCo manages the endowment, retirement plan, retiree welfare benefit plan and other financial assets of MIT. Prior to joining MIT, Seth was a director at the Yale Investments Office. At Yale, Seth was a management fellow at the Yale School of Management, co-teaching a class on endowment management. Seth co-authored a paper titled “Illiquid Alternative Asset Fund Modeling” that appeared in The Journal of Portfolio Management in 2002. Seth is a member of the board of directors of the Whitehead Institute, a member of the Whitehead Investment Advisory Committee, an investment committee member of the Beth Israel Lahey Health Board of Managers and an investment committee member of CRICO, the risk management foundation of Harvard Medical Institutions. Seth earned a BS in Biology from Yale University in 1995. One of the new lounges located on the north side of the Schwarzman Center.

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Donna Dean, Former Chief Investment Officer, The Rockefeller Foundation “Working in the Yale Investments Office and learning the craft of investing from David Swensen was the most formative experience of my career. Being at Yale made it clear to me that I wanted to invest on behalf of a nonprofit with a mission of making the world a better place.” Donna Dean joined the Rockefeller Foundation in 1995. She served as its chief investment officer from 2001 through 2019. Prior to joining the Rockefeller Foundation, Donna spent seven years at Yale University, where she served as director of investments, with responsibility for real estate as well as oversight of the New Haven Initiative community investment program. From 1984 to 1987, she worked for CIGNA Investments in Hartford, where she managed real estate portfolios in the southeastern United States. From 1978 to 1984, she was with International Paper Company in New York, where she served as manager of trust investments and oversaw the company’s pension and employee benefit funds. Donna is an independent trustee of Harbor Funds and serves on the investment committee of Queens University of Charlotte. Donna received a bachelor’s degree from Queens University in Charlotte, North Carolina, and an MBA from the University of North Carolina at Chapel Hill.

Andrew K. Golden, President, Princeton University Investment Company “I often describe my time at the YIO as being the equivalent of a medical internship and residency—it had that much impact on my professional and, indeed, intellectual development.” Andy Golden ’89 MPPM became the third president of the Princeton University Investment Company (Princo) in January 1995. He came to Princo from Duke Management Company, where he was an investment director. He previously worked as a senior associate in the Yale Investments Office. Before shifting his focus to investing, Andy was a professional photographer. Andy earned the Chartered Financial Analyst designation and is a member of the New York Society of Security Analysts. He served as a founding member of the Investors’ Committee of the President’s Working Group on Financial Markets, and previously served as a member of the board of directors of the NAB Asset Corporation, a publicly traded commercial loan workout specialist. He is a trustee of the Princeton Area Community Foundation, Rita Allen Foundation and Rutgers Preparatory School. Andy holds a BA in Philosophy from Duke University and an MPPM from the Yale School of Management.

Randy Kim, Chief Investment Officer, Rainwater Charitable Foundation “I will forever be grateful to David, Dean and the rest of my former YIO colleagues for ten years of invaluable investment training and personal mentorship. I am blessed for the opportunity to have made so many great friends, and I wish my colleagues at Yale every future success.” Randy Kim ’98 BA, ’04 MBA became the first chief investment officer of the $1 billion Rainwater Charitable Foundation (RCF) in 2017. Established by legendary investor Richard Rainwater in 1991, RCF funds research to accelerate treatments in a class of neurodegenerative diseases called tauopathies. The foundation also supports a variety of children’s educational programs. Prior to joining RCF, Randy spent eight years as chief investment officer of the Conrad N. Hilton Foundation, which funds nonprofit organizations working to improve the lives of individuals living in poverty and experiencing disadvantage throughout the world. He previously worked for a decade at the Yale Investments Office, focusing primarily on the domestic equity, foreign equity, international private equity and absolute return portfolios. Randy is the most devoted Notre Dame football fan in America, despite his lack of a Notre Dame degree. Randy holds a BA from Yale University and an MBA from the Yale School of Management.

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Anne Martin, Chief Investment Officer, Wesleyan University “I can’t imagine a better place than the Yale Investments Office to learn the art and science of investment management. I’ll always be thankful that David Swensen and Dean Takahashi took a leap of faith to bring me into the fold. It’s hard to imagine an environment that provides greater breadth in intellectual challenges, cutting-edge thinking and exposure to the smartest people in the investing world, a group that includes not only Yale’s investment managers, but my colleagues within the Yale Investments Office.” Anne Martin became Wesleyan University’s chief investment officer in 2010. She was previously a director at the Yale Investments Office, where she worked on the natural resources and private equity portfolios. Prior to joining Yale, Anne worked as a general partner of private equity firm Rosewood Capital in San Francisco, where she focused on Internet, software and business service investments. Prior to that, Anne was a managing director in the technology practice at Alex. Brown, where she worked on corporate finance and mergers and acquisitions in the information technology sector. Anne was a co-founder, board member and board chair of the Packard Center for ALS Research at Johns Hopkins, an innovative nonprofit organization dedicated to finding therapies for amyotrophic lateral sclerosis. She was part of the national rowing team from 1985 to 1988 and has served as a director and co-chair of the National Rowing Foundation, a nonprofit organization devoted to preparing the next generation 14

of U.S. rowers for the highest levels of international competition. Anne serves on the investment committee for Smith College and is an advisor to the David & Lucile Packard Foundation investment committee. Anne is a cum laude graduate of Smith College, Phi Beta Kappa, and holds an MBA from Stanford Business School.

Mary McLean, Former Chief Investment Officer, Ewing Marion Kauffman Foundation “I remember the Yale Investments Office as a place where ideas live free and extravagant lives, a source of wonder and delight for its human inhabitants. I am grateful for my time there.” Mary McLean ’88 MBA, ’94 PhD is the former chief investment officer of the Kauffman Foundation, which builds and supports programs that improve education, boost entrepreneurship and help its hometown of Kansas City thrive. Mary retired from this position in 2018. Prior to joining the Kauffman Foundation in 1996, Mary was a senior associate with the Yale Investments Office, where she was introduced to the opportunities and challenges of endowment management. She began her career at Morgan Stanley, primarily in technology roles, but eventually as a quantitative analyst. Currently, Mary serves as an advisor to several investment funds and is engaged as a community volunteer in the areas of food security and COVID-19 prevention. She is a CFA charterholder. Mary earned a bachelor’s degree in Math at Brown University, an MBA from the Yale School of Management and a

PhD from Yale’s Graduate School of Arts & Sciences.

Lauren Meserve, Senior Vice President and Chief Investment Officer, The Metropolitan Museum of Art “I view my time at the Yale Investments Office as a continuation of my undergraduate education. Working with David and Dean, I learned something new every day.” Lauren Meserve ’93 is the senior vice president and chief investment officer of The Metropolitan Museum of Art, where she oversees the management of the museum’s $4.0 billion investment portfolio. Lauren joined the museum in 2002, was named chief investment officer in 2014, and became senior vice president and chief investment officer in 2017. Previously Lauren worked at the Andrew W. Mellon Foundation, where she assisted in the management of the foundation’s endowment, collaborated on The Shape of the River: Long-Term Consequences of Considering Race in College and University Admissions (Bowen and Bok) and The Game of Life: College Sports and Educational Values (Bowen and Shulman) and coordinated projects for Artstor. Lauren began her career at the Yale Investments Office. Lauren serves on the boards of the Wenner-Gren Foundation for Anthropological Research and the American Friends of the National Gallery, London. Lauren has a bachelor’s degree in Anthropology from Yale University and a master’s degree in Public Policy with a certificate in Demography from the Princeton School of Public and International Affairs.

Kimberly Sargent, Chief Investment Officer, David & Lucile Packard Foundation “It was a great honor to be a small part of a team of such talented investment professionals at the Yale Investments Office for three years. As a recent college graduate, I benefited from an intense lesson in all aspects of the world of investment management. As a lover of learning, I was in an environment in which intellectual honesty and rigor were applied toward the challenge of earning superior returns. And as someone who cared about doing good in the world, I was thrilled to see the results of our work go to benefit the university and the globe.” Kim Sargent ’00 is the chief investment officer at the David & Lucile Packard Foundation, responsible for investing the foundation’s $8 billion portfolio across public and private equities, hedge funds, fixed income, real estate and natural resources. The foundation uses the proceeds from these investments to support programs that improve the lives of children, enable the creative pursuit of science, advance reproductive health, and

D. Ellen Shuman, Co-Founder, Edgehill Endowment Partners “Working at the Yale Investments Office under David’s leadership grounded me in important first principles of investing and the confidence to think independently. Thirty-five years later it is incredibly special to share so many long-standing friendships with my fellow Yale colleagues!” D. Ellen Shuman ’84 MPPM has worked in the field of endowment management for over thirty years, serving institutions of higher education and philanthropy. More recently, in April 2020, she has embraced public service through her appointment by Governor Lamont to the State of Connecticut’s Investment Advisory Council (IAC), which advises the state treasurer on the investment of the state’s pension assets. In 2013, Ellen co-founded Edgehill Endowment Partners, a firm that operates as a fullservice investment office to steward the endowment assets of a limited number of mission-based institutions. Edgehill manages approximately $2 billion on behalf of four clients in global, diversified portfolios. In early 2020, she transitioned to a strategic role at Edgehill. Ellen served as the chief investment offi-

conserve and restore the earth’s natural systems. Kim joined the Packard Foundation in 2008 as the institution was building an investment team for the first time, after having held HewlettPackard stock historically; she helped to establish the institutional-quality portfolio and recruit the twelve-person team that exists today. Prior to joining the foundation, Kim was an associate at McKinsey & Company’s San Francisco office, where she served financial institutions on various projects, and prior to business school she was a senior analyst at the Yale Investments Office, where she specialized in international equities and served as research assistant to chief investment officer David Swensen for his second book, Unconventional Success. Kim is a CFA charter holder and a fellow of the inaugural class of the Aspen Institute’s Finance Leaders Fellowship. Kim graduated from Yale University with a BA in History, magna cum laude, and from Stanford’s Graduate School of Business with an MBA.

cer of Carnegie Corporation of New York, a private foundation, from 1999 to 2011. As the foundation’s first chief investment officer, she built the investment office and implemented a set of strategies that dramatically diversified the portfolio—globally and by asset class. Prior to Carnegie Corporation, Ellen worked at the Yale Investments Office, focusing on real estate, energy and fixedincome asset classes, including the university’s debt issuance. She taught several courses at Yale College and the Yale School of Management on finance and real estate investing. Ellen received the Institutional Investor Magazine Lifetime Achievement Award in 2014 and the Award for Excellence in Investment Management– Foundations—in 2006. She was appointed a member of the Investors’ Committee of the President’s Working Group on Financial Markets in 2008. Currently Ellen is on the board of JBG Smith, a REIT based in Washington, D.C. Ellen received a BA, magna cum laude, from Bowdoin College; an MPPM from the Yale School of Management; and earned the CFA designation in 1992.

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Paula Volent, Chief Investment County Museum of Art and the National Officer and Senior Vice President, Gallery of Art in Washington, D.C. She Bowdoin College also ran a private paper conservation stu“My skills in endowment management and dio in Los Angeles. my passion for investing began at the Yale Paula serves as a board member of Investments Office and at the Yale School of MSCI. She serves on the board of adviManagement. Under David Swensen’s lead- sors of the Yale School of Management, ership, I learned to be curious, to seek out as a member of the investment commitmarket inefficiencies and to highly value the tee of the Pritzker Family Foundation, as opportunity to support access to a high-qual- a member of the advisory board of Girls ity education through growing endowment Who Invest, as an advisory board memsupport of financial aid. At Bowdoin I have ber of the University for Asian Women, put what I learned at Yale to work, doubling as a trustee of the Skowhegan School of the endowment’s percentage support of Art and Painting and as an investment financial aid, allowing the college to contin- committee member of the Rockefeller ue to be need blind and no-loan.” Foundation. She is also a member of the Milken Institute’s Global Markets Paula Volent ’98 MBA is chief investment Advisory Council and a member of the officer and senior vice president at advisory board of the Private Capital Bowdoin College, a private, residential Research Institute at Harvard University. college in Brunswick, Maine. At Bowdoin, Paula has a BA from the University Paula is responsible for the oversight and of New Hampshire; a master’s in Art management of the college’s endowment. History from the Institute of Fine Arts at Prior to joining Bowdoin in July 2000, New York University; a Certificate in Paula was a senior associate at the Yale Conservation from the Conservation Investments Office. Prior to focusing on Center at NYU, with a specialization in endowment management, Paula worked the conservation of works of art on as a paper conservator at the New-York paper; and an MBA from the Yale Historical Society, the San Francisco School of Management. Palace of Fine Arts, the Los Angeles

Robert F. Wallace, Chief Executive teen-year dance career began at the Officer, Stanford Management Washington Ballet, continued at Company American Ballet Theatre under the direc“The Yale Investments Office, like the uni- tion of Mikhail Baryshnikov and conversity itself, is a place of light and truth. It cluded at the Boston Ballet. Rob danced was a privilege and an inspiration to have principal roles in substantially all of the worked with David Swensen and Dean great classical ballets. His repertoire in Takahashi early in my career and I consider contemporary works included leading myself fortunate to count as colleagues many roles in ballets by Balanchine, Robbins, of the other wonderful professionals who Tudor, De Mille, Tharp, Morris, York, have been part of the Investments Office Goh, Lubavitch and Taylor. through the years.” Rob is a member of the Council on Foreign Relations. He has previously Robert Wallace ’02 is the chief executive served as trustee of the English National officer of Stanford Management Ballet, the Royal Opera House, Covent Company, where he oversees Stanford Garden and the Royal Ballet School. University’s $30 billion investment port- Rob received a degree in Economics folio. Prior to joining Stanford in 2015, from Yale University, graduating summa Rob was the chief executive officer of cum laude and Phi Beta Kappa. Alta Advisers, a London-based investment firm that pursues a global and diversified investment strategy on behalf of one of Europe’s most philanthropic families. Rob’s investment career began at the Yale Investments Office. Prior to his work in investment management, Rob was a classical ballet dancer. His six-

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Casey D. Whalen, Chief Executive Officer and Chief Investment Officer, Truvvo Partners “My years at the Yale Investments Office were extraordinarily impactful on my life. David Swensen’s guidance as a mentor, teacher and advocate laid the foundation for my career trajectory and, more importantly, for my business ethics, critical thinking skills and intellectually honest approach to investing. I am so grateful for David’s professional support and friendship all these years, as well as the close relationships from our tight-knit group.” Casey Whalen ’96 founded Truvvo Partners, where she serves as the chief executive officer and chief investment officer. She believes deeply in alignment with clients and investments, and in providing the benefits, resources and skill

sets from the institutional world to Truvvo’s clients. Prior to Truvvo, Casey was the chief investment officer of The New York Public Library. She joined the Library as the first chief investment officer with a mandate to create the office of investments. Her responsibilities included asset allocation, manager selection and overall management of the endowment, which is invested across various traditional and alternative asset classes. Before The New York Public Library, she was director of public investments for The Rockefeller University, focusing primarily on global equities, hedge funds and fixed income. She was heavily involved in asset allocation, overall portfolio management and the establishment of the university’s real estate allocation. Casey began her investment career at the Yale Investments Office working across various asset classes, including foreign equity, real estate and fixed income. She went on to work for one of Yale’s real estate investment managers. Casey is a board member and treasurer of the Yale Swimming and Diving Association, having been a member of the Yale Varsity Women’s Swimming team. Casey is a CFA charterholder and member of the New York Society of Security Analysts. She serves on the investment committee of the Rockefeller Family Fund. Casey is a member and board member of the New York City chapter of GenNext. Casey holds a BA from Yale University.

Ana Yankova, Chief Investment Officer, Mount Holyoke College “Deeply committed to the university’s mission, David and Dean led a team that showed up every day to deliver excellence. Our Monday morning team meetings provided me with a front row seat at a master class in investing. My biggest lesson from my time at Yale was that asking the right questions is as important as finding good answers.” In April 2020, Mount Holyoke College named Ana Yankova its inaugural chief investment officer. Before that, Ana was a partner at global investment firm Cambridge Associates. Previously, Ana was a senior financial analyst at the Yale Investments Office and an associate analyst at the National Economic Research Associates. She was born and raised in Bulgaria. Ana graduated from Mount Holyoke College with a bachelor’s degree in Economics and earned an MBA from the MIT Sloan School of Management.

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Spending Policy The spending rule is at the heart of fiscal discipline for an endowed 4 institution. Spending policies define an institution’s compromise between the conflicting goals of providing support for current operations and preserving purchasing power of Endowment assets. The spending rule must be clearly defined and consistently applied for the concept of budget balance to have meaning. The Endowment spending policy, which allocates Endowment earnings to operations, balances the competing objectives of providing a stable flow of income to the operating budget and protecting the real value of the Endowment. The spending policy manages the trade-off between these two objectives by combining a long-term spending rate target with a smoothing rule, which adjusts spending in any given year gradually in response to changes in Endowment market value. The target spending rate approved by the Yale Corporation currently stands at 5.25%. According to the smoothing rule, Endowment spending in a given year sums to 80% of the previous year’s spending and 20% of the targeted long-term spending rate applied to the market value at the start of the prior year. The spending amount determined by the formula is adjusted for inflation and taxes, subject to the constraint that

A recent exhibition at the Beinecke Library highlighted photographs by Carl Van Vechten (1880-1964) of such figures as Billie Holiday, Paul Robeson and (at far right, a photograph dated 1940) author Zora Neale Hurston 18

the calculated rate is at least 4.0% and not more than 6.5% of the Endowment’s inflation-adjusted market value at the start of the prior year. The smoothing rule and the diversified nature of the Endowment are designed to mitigate the impact of short-term market volatility on the flow of funds to support Yale’s operations. The spending rule has two implications. First, by incorporating the prior year’s spending, the rule eliminates large fluctuations, enabling the university to plan for its operating budget needs. Over the last twenty years, the standard deviation of annual changes in actual spending has been approximately 85% of the standard deviation of Endowment returns. Bertan Akin Second, by adjusting spending toward the long-term target spending level, Senior Performance Manager the rule ensures that spending will be sensitive to fluctuating Endowment market values, providing stability in long-term purchasing power. Distributions to the operating budget rose from $1.1 billion in fiscal 2010 to $1.4 billion in fiscal 2020. The university projects spending of $1.5 billion from the Endowment in fiscal 2021, representing approximately 36% of revenues.

Ahmed L. Sarhan ’16 Senior Associate

Spending Growth Surpasses Inflation 1950–2020

$1,600

$1,400

$1,200

$1,000 Millions $800

$600

$400

$200

Fiscal Year 1950 Spending Inflated Spending from Post-1950 Endowment Gifts Inflated Actual Spending 19

Investment Performance Yale has produced excellent long-term investment returns. Over the 5 ten-year period ending June 30, 2020, the Endowment earned an annualized 10.9% return, net of fees, placing Yale in the top 2% of colleges and universities. Over the same period, domestic stocks returned 13.7% and domestic bonds returned 3.8%. Endowment outperformance stems from sound asset allocation policy and superior active management. Yale’s long-term superior performance relative to its peers and benchmarks creates substantial wealth for the university. Over the ten years ending June 30, 2020, Yale added $9.5 billion relative to the average return of a broad universe of college and university endowments and $10.3 billion relative to its passive benchmark.

Performance by Yale’s long-term asset class performance continues to be outstanding. In Asset Class the past ten years, nearly every asset class posted superior returns, outperforming benchmark levels. Over the past decade, the absolute return portfolio produced an annualized 5.3% return, exceeding the passive Barclays 9 to 12 Month U.S. Treasury Index by 4.4% per year and besting its active benchmark by 3.0% per year. For the ten-year period, absolute return results exhibited little correlation to traditional marketable securities. The domestic equity portfolio returned an annualized 12.8% for the ten years ending June 30, 2020, outperforming the BNY Median Manager return, net of estimated fees, by 0.1% per year but underperforming the Wilshire 5000 Index by 1.0% per year. The foreign equity portfolio generated an annual return of 15.8% over the ten-year period, outperforming its composite passive benchmark by 10.7% per year and the BNY Median Manager return, net of estimated fees, by 10.8% per year. The portfolio’s excess return is due to effective security selection by active managers and astute country allocation. Leveraged buyouts generated an annualized 14.6% return over the decade, outperforming the composite passive benchmark by 4.9% per Ryan A. Healy year and the pool of buyout managers compiled by Cambridge Associates Manager of Business Intelligence by 0.4% per year.

Yale’s Performance Exceeds Peer Results July 1, 2010 to June 30, 2020, 2010 = $100

of Growth

20 Endowment Mean of Broad Universe of Colleges and Universities Inflation

Yale’s natural resources portfolio produced an annualized return of 4.4% over the past decade, surpassing its composite passive benchmark by 10.1% per year and outperforming the Cambridge Associates natural resources manager pool by 4.0% per year. Real estate generated a 9.7% annualized return over the ten-year period, outperforming the MSCI U.S. REIT Index by 1.9% per year, but underperforming the pool of Cambridge Associates real estate managers by 0.8% per year. The venture capital portfolio earned an annualized return of 21.3% for the ten years ending June 30, 2020, exceeding its composite passive Michael J. Byrnes ’18 benchmark by 9.0% per year and the Cambridge Associates venture Senior Investment Analyst capital and growth equity manager pool by 5.6% per year. Yale’s internally managed fixed income portfolio earned an annualized 1.2% over the past decade, in line with the passive index.

Most Yale Asset Class Results Beat Benchmarks July 1, 2010 to June 30, 2020

25%

20% Claire D. Goldsmith ’18 15% Senior Investment Analyst 10%

5%

0%

-5%

-10% Absolute Domestic Foreign Leveraged Natural Real Estate* Venture Short-term Return Equity Equity Buyouts* Resources* Capital* Fixed Income

Yale Return Passive Benchmark Active Benchmark

• Yale Returns and Active Benchmarks are dollar-weighted. Ilana M. Kamber ’18 Senior Investment Analyst Passive Benchmarks Active Benchmarks Absolute Return: Barclays 9-12 Month U.S. Treasury Index Absolute Return: Credit Suisse and Inverse Wilshire 5000 Domestic Equity: Wilshire 5000 Index Composite Foreign Equity: Blend of msci eafe Investable Market Index, Domestic Equity: bny Median Manager, U.S. Large-Cap msci Emerging Markets Investable Market Index, Equity, with fee adjustment of 78 basis points per annum msci China A Share Investable Market Index Foreign Equity: bny Median Manager Composite, Foreign Leveraged Buyouts: Blend of Russell 2000, MSCI World ex-U.S. Equity, with fee adjustment of 81 basis points per annum Small-Cap Index, msci China All Shares Mid-Cap Index fordeveloped equity and 97 basis points per annum for Natural Resources: Blend of Custom Timber reit Basket, S&P emerging equity O&G Exploration & Production Index, Custom Agriculture Leveraged Buyouts: Cambridge Associates Global Leveraged reit Basket Buyouts Real Estate: msci U.S. reit Index Natural Resources: Cambridge Associates Natural Resources Venture Capital: Blend of Russell 2000 Technology Index, Real Estate: Cambridge Associates Real Estate nasdaq Biotechnology Index, msci China Small-Cap Venture Capital: Blend of Cambridge Associates Global Venture Index, msci India Small-Cap Index Capital and Cambridge Associates Global Growth Equity Fixed Income: Barclays Capital 6-12 Month U.S. Treasury Index (Barclays 1-3 Year Treasury from October 2013 to June 2018, Barclays 1-5 Year Treasury from July 2010 to September 2013)

Jordi M. Bofill ’19 Investment Analyst 21

Management and Since 1975, the Yale Corporation Investment Committee has been responOversight sible for oversight of the Endowment, incorporating senior-level invest6 ment experience into portfolio policy formulation. The Investment Committee consists of at least three Fellows of the Corporation and other persons who have particular investment expertise. The Committee meets quarterly, at which time members review asset allocation policies, Endowment performance and strategies proposed by Investments Office staff. The Committee approves guidelines for investment of the Endowment portfolio, specifying investment objectives, spending policy and approaches for the investment of each asset category.

Investment Committee Douglas A. Warner, III ’68 Ben Inker ’92 Chairman Partner Former Chairman gmo J.P. Morgan Chase & Co. Peter Salovey ’86 PhD O. Francis Biondi, Jr. ’87 President Founder and Former Managing Partner Yale University King Street Capital Management John Shrewsberry ’92 MPPM Michael J. Cavanagh ’88 Former cfo Senior Executive Vice President and cfo Wells Fargo & Company Comcast Corporation Carter Simonds ’99 Anne Glover ’78 MPPM Former Managing Director ceo and Co-Founder Blue Ridge Capital Amadeus Capital Partners Josh L. Steiner ’87 Charles W. Goodyear iv ’80 Senior Advisor President Bloomberg l.p. Goodyear Investment Company Joseph T. Doran ’20 Investment Analyst

Yusuke Imamura ’20 Investment Analyst

The recently inaugurated Tsai Center for Innovative Thinking, with Becton Engineering Center at the right, SSS Tower in the distance. 22

The Investments Office manages the Endowment and other university financial assets, and defines and implements the university’s borrowing strategies. Headed by the Chief Investment Officer, the Office currently consists of thirty-two professionals.

Investments Office David F. Swensen ’80 PhD, ’14 LHD Daniel J. Otto ’12 Chief Investment Officer Associate Director Carrie A. Abildgaard John T. Ryan ’14 Director Associate Director Alexander C. Banker Celeste P. Benson Director Senior Portfolio Manager Amy M. Chivetta Michael Knight Director Senior Business Associate Alan S. Forman Bertan Akin Director Senior Performance Manager R. Alexander Hetherington ’06 Ahmed L. Sarhan ’16 Director Senior Associate Lisa M. Howie ’00, ’08 MBA Ryan A. Healy Joyce E. Koltisko ’18 Director Manager of Business Intelligence Investment Analyst Matthew S. T. Mendelsohn ’07 Michael J. Byrnes ’18 Director Senior Investment Analyst John V. Ricotta ’08 Claire D. Goldsmith ’18 Director Senior Investment Analyst Timothy R. Sullivan ’86 Ilana M. Kamber ’18 Director Senior Investment Analyst Xinchen Wang ’09 Jordi M. Bofill ’19 Director Investment Analyst Stephanie S. Chan ’97 Joseph T. Doran ’20 Senior Associate General Counsel Investment Analyst Vishal V. Patel ’20 Investment Analyst Deborah S. Chung Yusuke Imamura ’20 Senior Associate General Counsel Investment Analyst Lauren Caplan Joyce E. Koltisko ’18 Associate General Counsel Investment Analyst Sohail S. Ramirez ’10 JD Vishal V. Patel ’20 Associate General Counsel Investment Analyst Peter N. Steinwachs Cheryl M. Xiang ’18 Associate General Counsel Investment Analyst

Cheryl M. Xiang ’18 Investment Analyst 23

Sachem’s Wood, the small park at the foot of Science Hill, is shown after its recent makeover, which includes new landscaping, plantings, paved pathways and outdoor seating areas.

Photo taken from the fifth floor of the Yale Science Building with the generous assistance of Carol Hwang.

Alice Cinema, one of two auditoriums added on below-ground stories in the newly renovated Humanities Quadrangle.

Sources

Financial and Investment Information Educational institution asset allocations and returns from Cambridge Associates. Much of the material in this publication is drawn from memoranda produced by the Investments Office for the Yale Corporation Investment Committee. Other material comes from Yale’s financial records, Reports of the Treasurer, and Reports of the President.

Investments Office Alumni Biographical information provided by the subjects.

Photo Sources Portraits of alumni were provided by the individuals shown. Yale Investments Office staff photos by Mara Lavitt. Page 1, Swensen Tower logo by Kaleigh Kurpiewski. Page 1, Swensen Tower plaque and gate photos by Taylor Yovino. Page 1, David Swensen photo by Michael Marsland, Office of Public Affairs and Communications. Inside back cover, bulldog photo by Dan Renzetti. Front and back covers and all other photos by Tom Strong.

Design Strong Cohen, llc / Margaret Watkins

Front cover: Humanities Quadrangle, 320 York Street. See commentary, page 1. Yale President Peter Salovey ’86 PhD with young Kingman, who will Back cover: reign as Handsome Dan XIX. He was named for Kingman Brewster, Nine stained-glass windows, created in about 1930, selected from approxi- Jr., President of Yale University from 1963 to 1977, a historic period mately fifty similar windows in the student lounge on the ground floor of which included the change to coeducation and the introduction of the renovated Humanities Quadrangle. need-blind admissions in Yale College.