Endowment

The Institute's endowment is managed under the direction of its Vice President and Chief Investment Officer. Approximately 84 percent of the endowment is invested by external fund managers; the remainder is internally managed. External managers are used principally to manage alternative investments, including hedge funds, private equity, and derivatives.

At the close of fiscal year 2009, the endowment value was approximately $14.0 billion, a decrease of $3.5 billion from the end of fiscal year 2008.

In August 2009 the Institute issued $600 million in taxable bonds to establish a program spending reserve which may be used to fund the Institute's research program. In addition, subsequent to the end of the fiscal year, the Institute issued $23 million in tax-exempt bonds to finance the construction of 60 apartment housing units for visiting scientists and employees at the Janelia Farm Research Campus.

The composition of the Institute's endowment by investment category on August 31, 2009, is reflected in the graph below.