The graph below depicts the Endowment’s performance since 1977, when Princeton began hiring external managers. Also shown is a 65/35 blend of the S&P 500 and the Barclays Capital U.S. Government/Credit Bond Index. Over this period, the Endowment’s investments have earned a compound annualized return of 13.1%. On an absolute basis, this has fulfilled the University’s spending needs and added real purchasing power to the Endowment. On a relative basis, performance has also been very good, as an investment in the 65/35 benchmark would have compounded at 10.3% annually. Over the same period, the Endowment’s return ranks in the top percentile of institutional investors.