The Massachusetts Institute of Technology Investment Management Company (MITIMCo) announced today that MIT’s endowment generated a market return of 17.9 percent during the fiscal year ending June 30, 2011.
At the start of fiscal year 2011, the value of the endowment was $8.5 billion. Over the course of the year, the endowment received $403 million in new gifts and transfers, and spending from the endowment totaled about $445 million. Factoring in investment income and gains of $1.432 billion, the market value of the endowment — including pledges for endowed purposes — totaled $9.9 billion at the end of fiscal year 2011.
The goal of MIT’s endowment is to support current and future generations of MIT scholars with the resources they need. As such, endowment funds are used for Institute activities including education, research, capital projects, faculty work and student financial aid.
The Institute’s need-blind undergraduate admissions policy ensures that an MIT education is accessible to all qualified candidates regardless of financial resources. MIT provides financial aid to meet the full cost of an MIT education, based on the calculated need of the family. In 2010–11, the average need-based financial aid package was $38,964. Currently, 65 percent of MIT students receive need-based financial aid, and 34 percent of MIT students receive sufficient scholarship funding that they pay no tuition.
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 6.3 percent.
MITIMCo is a division of MIT created to manage and oversee the investment of the Institute’s endowment, retirement plans and operating funds. As of June 30, 2011, MITIMCo had more than $14 billion of assets under management.