Investment Return and Change in Net Assets
This shows the Net Investment Return and its impact on the University’s overall financial performance (Change in Net Assets).
Net Investment Return = Interest and Dividends, net of investment fees + Net Realized Gain or Loss + Net Unrealized Gain or Loss
The Change in Net Assets Ratio
Cornell's Change in Net Assets vs. Net Investment Return
Understanding this Ratio
This ratio demonstrates the change in value of net assets from fiscal year to fiscal year. The trend follows the investment return and the goal is to have a positive change each year. Net assets are viewed as the financial wealth of a University, similar to owner’s equity in a corporation.
Net Return Percentage = Net Investment Return / Investment Assets, beginning of the current fiscal year
(The net return on all the University’s investments is not limited to only the Long Term Investment Pool (LTIP), although the LTIP makes up a majority of the total investments).
The Investment Return Ratio
Cornell's Net Return Percentage on Long-Term Investments