MIT, Bowdoin Endowments Lose 5.3%, 7.1% in Fiscal 2022

The investment portfolios for the endowments of the Massachusetts Institute of Technology and Bowdoin College lost 5.3% and 7.1%, respectively, in 2022, as volatile markets and rising rates have caused nearly every endowment to report investment losses for the fiscal year ending June 30.

Nevertheless, the losses didn’t make a dent in last year’s robust performances, when MIT and Bowdoin reported returns of 55.5% and 57.4%, respectively.

The 5.3% investment loss for MIT’s endowment helped lower its asset value to $24.6 billion for the fiscal year, down 10.2% from just under $27.4 billion at the same time last year, according to The Massachusetts Institute of Technology Investment Management Company, which manages the school’s endowment.

“Challenging economic conditions affected the performance of our pooled investments,” MIT Treasurer Glen Shor said in the school’s report of the treasurer for fiscal year 2022.

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Meanwhile, Bowdoin’s endowment reported an investment loss of 7.1% for the fiscal year, which it attributed to a highly volatile period for financial markets, as its asset value declined to just under $2.5 billion from $2.72 billion the end of fiscal year 2021.

“Bowdoin’s investment return, while negative, compares favorably with equity and bond markets, which registered losses in the double digits over this very challenging period,” Bowdoin President Clayton Rose said in a statement, adding that “Chief Investment Officer Niles Bryant with the support and insights of our investment committee, did outstanding work to preserve much of the extraordinary gains we earned in the prior year, while generating substantial liquidity.”

The endowment reported three-, five-, and 10-year annualized returns of 15.7%, 14.7%, 13.3%, respectively, all of which Bowdoin said are in the top-fifth percentile among comparative college and university annualized returns, citing Cambridge Associates. Bowdoin’s endowment is comprised of over 1,700 individual funds and is diversified among asset classes such as domestic and international equities, fixed income, private equity, venture capital, real estate, and absolute return strategies.

It was the first full fiscal year at the helm for Bowdoin’s Bryant, who became CIO in July 2021 to replace Paula Volent, who stepped down after more than 20 years to become CIO of Rockefeller University.