MSU experienced high returns on the university's financial investments during the 2017-18 academic year, according to a university press release. The value of the endowment also increased to $2.9 billion.
The university publishes a complete list of cash and investments annually, the most recent list being published on June 30.
The list shows that MSU’s one-year investments had 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,” MSU Chief Investment Officer Philip Zecher said in the press release.
The $2.9 billion balance represents the largest amount in the history of MSU's endowment fund.
This fund represents endowed gifts to the university and the university's long-term investments. To fund scholarships and endowed professorships, MSU uses income from these long-term investments. The university also uses it to contribute to its general fund.
“This is very positive news that shows we have excellent management of our endowment,” Interim President John Engler said in the press release. “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.”
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