Harvard's record endowment shrinks for 1st time since 2016


Harvard University's endowment, the largest of any university, lost $2.3 billion this year, making it the first negative year for the school since 2016. This 1.8 percent loss on endowment investments comes just after a record high year in 2021 when Harvard saw 33.6 percent returns, Forbes reports.
The endowment comes from over 14,000 individual funds that are invested as a single entity and managed by an investment firm called the Harvard Management Company (HMC), which is owned by the university, CNN Business explains. The loss is attributed to the "poor performance of global equity markets" as well as Harvard's commitments to climate goals, according to HMC CEO N.P. "Narv" Narvekar. The university's climate goals impacted the endowment because many of the investors were invested in the "conventional" energy sectors like fossil fuels, CNN Business continues.
Harvard's endowment almost fully funds the university's work including research funding, financial aid, and general preservation. Despite the loss, Harvard still called its endowment of $50.9 billion a "very good result" given the current economic backdrop, Reuters reports. However, university officials acknowledge that last year's gain "has been muted by this year's market reversals."
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.

Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
Other universities also experienced endowment losses this year, with all the other Ivy Leagues besides Yale University, the only Ivy to gain, and Princeton University, which has yet to report at all, reporting losses, Forbes adds. Columbia University faced the largest loss of 7.6 percent.
Sign up for Today's Best Articles in your inbox
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
Devika Rao has worked as a staff writer at The Week since 2022, covering science, the environment, climate and business. She previously worked as a policy associate for a nonprofit organization advocating for environmental action from a business perspective.
-
A city of culture in the high Andes
The Week Recommends Cuenca is a must-visit for those keen to see the 'real Ecuador'
-
The Chagos Islands: Starmer's 'lousy deal'
Talking Point The PM's adherence to 'legalism' has given Mauritius a 'gift from British taxpayers'
-
Crossword: June 1, 2025
The Week's daily crossword
-
'Wrench attacks' are targeting wealthy crypto moguls
The Explainer The attacks are named for physical coercion that can be used to gain crypto passwords
-
Trump is trying to jump-start US manufacturing. Is it worth it?
Today's Big Question The jobs are good. The workers may not be there.
-
Crypto firm Coinbase hacked, faces SEC scrutiny
Speed Read The Securities and Exchange Commission has also been investigating whether Coinbase misstated its user numbers in past disclosures
-
Starbucks baristas strike over dress code
speed read The new uniform 'puts the burden on baristas' to buy new clothes, said a Starbucks Workers United union delegate
-
The end of WeightWatchers?
Talking Point The diet brand has filed for bankruptcy in the US as it struggles to survive in era of weight-loss jabs
-
Visa wants to let AI make credit card purchases for you
The Explainer The program will allow you to set a budget and let AI learn from your shopping preferences
-
A newly created gasoline giant in the Americas could change the industry landscape
The Explainer Sunoco and Parkland are two of the biggest fuel suppliers in the US and Canada, respectively
-
Warren Buffet announces surprise retirement
speed read At the annual meeting of Berkshire Hathaway, the billionaire investor named Vice Chairman Greg Abel his replacement