Dartmouth Endowment Achieves 10.8% Return for Fiscal Year 2025
Dartmouth College recently announced a 10.8% return on its endowment for the fiscal year ending June 30, 2025. This return marks a significant increase in the endowment, which rose from $8.3 billion to $9 billion during this period.
Dartmouth’s Long-Term Investment Strategy
The endowment’s performance over multiple timeframes has been robust. Over the past five years, it achieved an annualized return of 11.6%. For ten years, the return was 9.7%, and for twenty years, it reached 9.3%. Sian Beilock, the president of Dartmouth College, praised the consistency of these results. She attributed this success to disciplined stewardship and a focus on long-term investments.
Comparative Endowment Returns
In fiscal 2024, Dartmouth’s endowment returned 8.4%, placing it fifth among the eight Ivy League institutions. The college’s endowment performance for prior years included a return of 1.6% in fiscal 2023 and a negative 3.1% in fiscal 2022. The latest return of 10.8% still trails behind other Ivy League schools, such as:
- University of Pennsylvania: 12.2%
- Brown University: 11.9%
- Harvard University: 11.9%
Record Distribution for College Operations
In fiscal 2025, Dartmouth’s endowment distribution reached a record $453 million. This funding supports the college’s operating budget, showcasing the importance of a healthy endowment for ongoing institutional needs.
Endowment Asset Allocation
According to the college’s endowment report for 2024, the allocation of assets is diverse:
- Private Equity and Venture Capital: 40%
- Global Equity: 22%
- Hedge Funds: 21%
- Real Assets: 10%
- Fixed Income and Cash: 7%
Upcoming Changes in Taxation
Starting in fiscal 2026, Dartmouth will face a tax increase on its investment returns, raising the tax rate from 1.4% to 4%. This change results from the One Big Beautiful Bill Act passed in July. Scott Frew, Dartmouth’s Chief Financial Officer, assured that the college remains vigilant regarding future federal funding sources.
Resilience Against Funding Risks
Dartmouth’s endowment is noted for its resilience against government-funding risks. An analysis by Markov Processes International highlighted that it has the second-lowest liquidity risk compared to similar institutions. Additionally, it holds the lowest funding risk among its peers, which include other Ivy League schools, MIT, and Stanford.
As Frew stated, “Dartmouth is in a strong position because of an enduring commitment to responsible fiscal management, strategic investment, and advocacy for higher education and research.”
