The Massachusetts Institute of Technology Investment Management Company (MITIMCo) has announced that the Institute's endowment generated an investment loss of 17.1 percent ($1.7 billion) during the fiscal year ending June 30, 2009.
During Fiscal Year 2009, MIT's endowment paid out $518 million for operations, and received $143 million in new endowment gifts and transfers. In total, the endowment value dropped 20.7 percent from $10.1 billion to $8.0 billion.
Investment losses in fiscal year 2009 were cushioned by MITIMCo's diversified approach to investment. Investments in the fixed income, marketable alternative, real asset, and real estate arenas helped offset significant declines in public and private equity portfolios. For the past 10 years the Institute's endowment has had an annualized return of 9.3 percent.
MITIMCo is a division of the Massachusetts Institute of Technology, created to manage and oversee the investment of the Institute's endowment, retirement plans and operating funds. As of June 30, 2009, MITIMCo had more than $10 billion of total assets under management.