Penn's $6.63 billion endowment ranks ninth on a list of the endowments of almost 800 academic institutions across the country, according to an annual report published by the National Association of College and University Business Officers.
In the past six years, Penn has ranked either 11th or 12th on the list. In 2000, Penn did not even appear in the top 15.
"Being in the top 10 is a good thing," Penn President Amy Gutmann said. "I think it is a reflection of how we've done in fundraising and in investment."
Among the top 10, Penn's endowment growth for the last fiscal year - 24.9 percent - trailed only Yale University and the University of Michigan.
"The strong investment performance is the biggest contributor," Executive Vice President Craig Carnaroli said. He added that reallocating funds from short term to long term investments also contributed to the high growth.
Gutmann also pointed to lower administrative costs, which allowed total growth to exceed the 24-percent mark.
However, Carnaroli pointed out that Penn still has room for improvement, despite its new ranking.
"While the absolute number may be impressive, the reality is that on a per student basis, Penn currently ranks 61," he said. "The peers for which we compete for students and faculty are all ranked in the top 10 [per capita]."
And while Carnaroli said "we are very proud" of the achievement, he also added that a lot must be done for Penn to maintain its spot in the top 10.
"Our ascendancy means someone fell out of the top 10," he said. "So we need to continue to be prudent and wise in both our investment of funds as well as maintain our strong fundraising efforts."
Yet that reality doesn't depress administrators.
"We're proud that we do more with less," Gutmann said. "Though we're less wealthy per capita, we do more, which is reflected in our ranking, quality of education and student satisfaction."
The endowment will be used to fund the increase in financial aid spending from $90 million to $110 million over the next two years.
Even with expected economic swings, Vice President for Development and Alumni Relations John Zeller said that the University's goals demand further endowment growth in the coming years.
Nonetheless, he said that last year's growth was important.
"The growth in investments and the growth in the endowment will be significant in contributing to the goals of the University," he said. "There is no doubt about that."
