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Princeton endowment returns continue to support the University’s mission and impact

For the fiscal year ended June 30, 2021, Princeton’s endowment realized a gain on investment of 46.9% and its value was $ 37.7 billion. The average annual return on the endowment for the last 10 years is 12.7% and 11.2% for the last 20 years.

Endowment distributions and other investment income cover 66% of the University’s operating income each year. This percentage has steadily increased as the endowment has increased. In 1997, only 33% of the University’s operating revenues were funded by endowments.

In fiscal 2021, endowment distributions totaled $ 1.5 billion. Over the past decade, the endowment has contributed $ 10.8 billion to the operations of the University, which is equivalent to almost two-thirds of the value of the endowment at the start of this period.

Fiscal 2021 results were certified by the board of directors of Princeton University Investment Company (PRINCO) earlier this month.

This year’s exceptional returns reflect not only strong underlying markets, but also the outstanding work of PRINCO’s exceptional investment team over many years, ”said President Christopher L. Eisgruber.

The University expects to apply these resources through planning processes established and guided by our strategic framework and our goals, including our commitments to increase access and affordability, advance Princeton’s academic priorities, serve a wider range of students, and achieve net zero carbon emissions targets for students. campus operations, ”he said.

The University recently published two stories that explore the origins of endowment, its long-term purpose, and its impact over time.

The first story explains how endowment works and why the University must balance today’s funding priorities while maintaining a financial foundation for future generations. The second story looks at the story of the impact of endowment in enhancing Princeton’s strength as a leading teaching and research university, saving it from red ink in the 1970s and strengthening the university’s ability to develop talent, boldly engage in new areas and make big bets on transformative ideas that impact the world.

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