In the fiscal year ended June 30, 2021, a year defined by rising asset prices and generous donations to the university, the value of Carnegie Mellon University’s endowment increased from $ 2.1 billion. dollars to $ 3.1 billion. Donations and other additions contributed $ 217 million to the endowment growth, while investment performance added $ 906 million. Endowment distributions to support university scholarships, chairs and other important needs totaled for the first time over $ 100 million, or about 8% of operating expenses. By comparison, the endowment provided less than 5% of operating costs just seven years ago.
Endowment is an important and permanent source of financial and operational stability for the university. Over the past 10 years, thanks to continued generosity from donors and an investment program focused on long-term compound net returns, the value of the endowment has grown by $ 2.1 billion while distributing $ 682 million. dollars to support university operations. The fund will continue to play a key role in helping academic leadership perpetuate academic and research excellence and address critical issues in a rapidly changing and increasingly competitive world.
Carnegie Mellon’s endowment investments returned 42.6% for the year, net of all fees and expenses. The annual endowment investment returns for the rolling 10-year, five-year, and three-year periods averaged 10.9%, 15.4%, and 17.5%, respectively.
The value of the university endowment does not include the assets of the Dietrich Foundation, which also generates returns for the benefit of Carnegie Mellon. The endowment receives 53.5% of the foundation’s annual distributions. Applying this percentage to the assets of the Dietrich Foundation as of June 30, 2021 gives a share of $ 875 million. The endowment, combined with this share, totals $ 4.0 billion invested to benefit Carnegie Mellon’s students, faculty and programs in perpetuity.
“A little over 15 years ago, the university began to put in place a strategy to structure the equity endowment portfolio, global in scope and focused on private investment,” said Charles A. Kennedy, Director of Carnegie Mellon’s investments. “Generous donations coupled with an investment focused on building long-term goals have positioned the portfolio well to take advantage of such an exceptional year in the markets. university research will benefit generations of future students and faculty. “