Following a rebounding endowment reported in October, the University’s report of its FY2010 financial results also shows signs of improvement, with a consolidated net assets increase of $1.5 billion, or 7.5 percent, over the last fiscal year to end at $21.4 billion.

Positive investment returns were a large source of the increase in net assets for the fiscal year, which ended on Aug. 31. Consolidated net assets include the University as well as the Lucile Packard Children’s Hospital and Stanford Hospital and Clinics. The University’s own increase in net assets was $1.4 billion, or 8 percent, over the previous fiscal year.

The endowment grew 10 percent in the last fiscal year to about $13.9 billion, which showed a comeback from the previous year’s 25.9-percent drop in the value of the merged pool, Stanford’s principal investment pool. Endowment growth this year came from gifts, investment gains and funds transferred into the endowment, according to the University’s report. The endowment payout dropped 11 percent.

“When the financial downturn unfolded in 2008-2009, the University took swift action to reduce expenses and lower the endowment payout to operations,” said Randy Livingston, chief financial officer, in a statement. “While Stanford is in a stronger financial position today, we remain wary of the economic climate, the volatility of financial markets and the uncertainty around federal research funding and health care reform.”

FY2010 results can be found on the Stanford bondholder website.

— Ellen Huet