CAMBRIDGE, Mass. – Harvard University says its endowment has seen a dramatic reversal of fortunes, earning a profit of 11 percent and growing to $27.4 billion in the last fiscal year.
The university says in a statement posted on its website Thursday that innovative investment strategies and active risk management helped it grow its largest-in-the-nation endowment by about $1.4 billion.
Still, Harvard has a long way to go to recoup devastating losses it suffered when its endowment fell by $11 billion during the preceding financial year.
The school says the endowment paid for more than a third of Harvard's operating budget last year.
Harvard says it expects to increase financial aid for undergraduates by about 7 percent for the 2011 fiscal year.