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Key Ratios

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

Cornell's Change in Net Assets vs. Net Investment Return

Impact of investment return on financial performance (i.e., change in net assets)

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).

Cornell's Net Return Percentage on Long-Term Investments

Measure of investment performance compared to the University’s benchmark (Strategic Investment Policy)