The Massachusetts Institute of Technology Investment Management Company (MITIMCo) announced today that MIT's endowment generated an investment gain of 10.2 percent during the fiscal year ending June 30, 2010.
At the start of Fiscal Year 2010, the value of the endowment was $7.9 billion. Over the course of the year, the endowment received $104 million in new gifts and transfers, and spending from the endowment totaled about $460 million. Factoring in investment gains of $800 million, the market value of the endowment — excluding pledges for endowed purposes — totaled $8.3 billion at the end of the fiscal year.
MITIMCo’s investment policy is focused on the primary goal of generating high real rates of return without exceptional volatility. The portfolio is primarily invested in equities and heavily weighted toward markets such as private equity, real estate and marketable alternatives. For the past five years, MIT’s endowment has earned an annualized return of 7.2 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, 2010, MITIMCo had more than $12 billion of total assets under management.