Stanford’s endowment grew by 19.5 percent over the past year, an increase that has been attributed to returns on investments, endowment gifts and other funds that have been rolled into the endowment, according to a University statement.

On Aug. 31, the last day of Stanford’s previous fiscal year, the University’s endowment stood at $16.5 billion. In comparison, Harvard University’s endowment, reported a 21 percent increase for the 2011 fiscal year and currently claims the largest endowment in the world at $32 billion.

Stanford’s investment returns have also seen an uptick, achieving a 12-month return of 22 percent for a period that ended on June 30. The investment pool — which is controlled by the Stanford Management Company (SMC), a division of the University — includes most of the endowment, as well as funds from Stanford Hospital & Clinics and Lucile Packard Children’s Hospital.

This is the University’s second straight year of investment gains. Last year, Stanford posted a 14.4 percent return on its investments, following a 25.9 investment loss in 2009, which has been credited to the stock market crash and the bankruptcy of the Lehman Brothers Holding Inc. However, even with these gains, the endowment still trails the $17.2 billion it was valued at on Aug. 31.

“We are pleased with our returns for fiscal 2011. But we remain concerned about the uncertain macroeconomic climate and its impact on global financial markets,” John Powers, CEO of SMC, said in a University statement.

— Kurt Chirbas