Bowdoin's Endowment Returns 10.9 Percent

Bowdoin's investment return of 10.9 percent compares with the median return of 10.1 percent for all college and university endowments for the same period based on preliminary reporting by Cambridge Associates, a firm that tracks the performance of endowments and foundations nationwide.

As of June 30, 2024, the three-, five-, ten-, and twenty-year annualized returns for Bowdoin's endowment were 1.2 percent, 11.5 percent, 10.9 percent, and 10.6 percent, respectively. Bowdoin's long-term performance over the five-, ten-, and twenty-year periods places Bowdoin in the top one percent of all college and university endowments tracked by Cambridge Associates.

"These investment returns are the result of outstanding work by our investment team led by Senior Vice President Niles Bryant and our dedicated Investments Committee," said Bowdoin President Safa Zaki. "I am deeply grateful for their efforts."

Bowdoin's endowment consists of 1,909 individual funds earmarked for the support of a variety of college initiatives. Nearly half of the Bowdoin endowment is restricted by donors for the support of student financial aid, with distributions accounting this year for approximately 78 percent of the College's $66.7 million financial aid budget. Other donor-restricted distributions are used to support professorships and instruction, lectureships, museums, the library and book purchases, and technology.

In the current fiscal year, endowment distributions are providing 51 percent of Bowdoin's $231.3 million operating budget, with tuition and fees accounting for 37 percent. A decade ago, these percentages were nearly reversed-the endowment contributed 30 percent of total revenues in 2014-2015, while tuition and fees accounted for 51 percent.

The endowment portfolio is diversified across different asset classes, including domestic and international equities, fixed income, private equity, venture capital, real estate, and absolute return strategies.

All asset classes are invested through a selection of external investment managers or through market indices. The portfolio is structured with a long-term time horizon, with portfolio diversification and manager selection directed toward protecting endowment capital in challenging investment environments, while growing those assets during periods of economic stability and growth.

Bowdoin's endowment is as old as the College, having been established in 1794 with a $1,000 gift from James Bowdoin III. In the 230 years since, many thousands of alumni, parents, friends, and foundations have made endowment gifts to the College, the principal of which can never be spent. It is through investing these funds and withdrawing a portion of the earnings that the College is able to fulfill its donors' stated intentions. The remaining earnings are reinvested to ensure that the endowment will be as strong for future generations as it is today.