Carnegie Mellon University Endowment Grows to $1.9 Billion
- Marketing & Communications
Carnegie Mellon University's endowment grew $167 million during fiscal year 2018 to a value of $1.9 billion as of June 30, 2018. Gifts and other additions added $62 million and investment performance added $186 million of value. Distributions from the endowment for university operations totaled $81 million or approximately 6.8 percent of operating expenditures.
Notably, the university's long-term, global equity-focused investment strategy, along with gifts from university alumni and friends and other funds invested in the endowment, have multiplied endowment value 2.5 times from $754 million at the trough of the global financial crisis in mid-2009, while distributing $509 million to support university operations.
CMU's investments returned 11.2 percent for the fiscal year, net of all fees and expenses. The endowment’s comparable per annum investment returns for trailing 10-year, 5-year and 3-year periods averaged 6.3 percent, 9.6 percent and 7.7 percent, respectively.
Total endowment value does not include assets from The Dietrich Foundation, which also generate returns to benefit Carnegie Mellon. The university's share of annual distributions from The Dietrich Foundation is 53.5 percent. If the portion of The Dietrich Foundation's assets generating income for CMU were added to the university's endowment, the combination would total $2.4 billion invested to benefit the university.
“Fiscal year 2018 marks the fifth consecutive year in which endowment support increased as a percentage of the growing operating budget, starting with 4.5 percent of the university’s operations in fiscal year 2013 and rising to 6.8 percent in fiscal year 2018. By pursuing a global investment strategy, focused on private equity investments and compounding returns over the long-term, we believe the endowment is well positioned to continue its meaningful role supporting the university’s students, faculty and programs,” said Charles A. Kennedy, CMU’s chief investment officer.