MSU sees high returns on financial investments
During the last academic year, Michigan State University experienced high returns on the university’s financial investments and the value of the endowment increased to $2.9 billion.
As of June 30, MSU’s one-year investments showed a return of 11.1 percent while three-year investments had a return of 7.2 percent. The five-year and 10-year returns were 8.4 percent and 6 percent, respectively.
“While our public equity and hedge fund portfolios beat their respective benchmarks, performance was driven by strong returns in our private equity and private real estate portfolios,” said Philip Zecher, MSU’s chief investment officer.
MSU’s endowment funds represent endowed gifts to the university and the university’s long-term investments. MSU uses income from these investments to fund scholarships and endowed professorships, and contribute to the university’s general fund. The $2.9 billion balance represents the largest amount in the history of the endowment fund.
“This is very positive news that shows we have excellent management of our endowment,” said John Engler, MSU’s interim president. “Combine that with the solid returns and it allows us to inform our benefactors that their generosity to MSU is being managed to achieve the greatest benefit for our students and faculty.”