BOSTON, Oct 16 (Reuters) - The value of Harvard

University's endowment, the world's largest among universities,

grew by nearly $4 billion to $56.9 billion in fiscal 2025 on the

back of strong investment returns even as the Trump

administration cut the school's research funding.

Harvard Management Co, the university's investment arm, said

on Thursday it earned an 11.9% return in the fiscal year that

ended June 30. The return beat the school's long-term target of

8%, according to its annual report. In fiscal 2024, Harvard's

endowment earned a 9.6% return to total $53.2 billion.

The school said it also received a record $600 million in

unrestricted gifts from alumni and friends as its battles with

the Trump administration made news headlines.

President Donald Trump accused Harvard of fostering

antisemitism on campus amid Israel's war in Gaza, but critics

said the charge was a pretext for a broader campaign against

what Trump views as anti-conservative bias in academia.

The dispute, now playing out in court, also involves

federal efforts to cut research funding and restrict

international student enrollment at the university.

The school's endowment allocated 41% of its assets to

private equity investments and 31% to hedge funds, and kept its

allocation to public equities unchanged at 14%, Harvard

Management Chief Executive N.P. Narvekar wrote in a letter.

"Though endowment results in fiscal year 2025 were dampened

by having less public than private equity, HMC's performance

overall was bolstered by discerning manager selection," Narvekar

wrote, referring to the endowment's use of outside investment

advisers.

Returns from Ivy League schools like Harvard are watched

closely because they pioneered practices like using hedge funds

and private equity funds, and they are under even more scrutiny

due to the current political battles.

"We continue to adapt to uncertainty and threats to sources

of revenue," Harvard President Alan Garber wrote, without naming

Trump.