Brown Vice President and Chief Investment Officer Jane Dietze said that the Investment Office’s charge is to protect and prudently grow the endowment over time, to ensure its role as an enduring financial resource that provides long-term support and advances Brown’s mission. Brown’s investment strategy is therefore designed to achieve strong risk-adjusted returns over decades rather than over the course of any single year.

“It is a privilege to report once again that the market value of Brown’s endowment stands at a new all-time high, as does the level of support it provides for the University’s mission,” Dietze said. “Our investment performance this year and across the last two decades is a testament to steady guidance from our investment committee, supportive alumni, an exceptional group of external investment managers and a dedicated team in the Investment Office.”

Over the last decade, the endowment has produced $4.9 billion in investment returns and provided $2 billion to support Brown’s educational mission. Annualized returns for Brown’s endowment for three, five, 10 and 20 years are 2.8%, 13.1%, 10.8% and 9.5%, respectively.

Brown’s endowment is a collection of charitable gifts designated by donors to be spent for specific purposes and invested by the University. The funds are invested in a diversified portfolio of assets with the intention that each original gift will grow in size and provide an ongoing income stream to support the specific endowed purpose.

Among nearly 4,000 individual endowed funds that comprise the Brown endowment are funds that support financial aid to allow students to graduate debt-free; professorships to recruit leading researchers and educators; labs and public health space to help develop treatments and cures and address health crises; community engagement initiatives; academic programs to prepare the next generation to address societal challenges; and teaching and research in areas such as climate change.

Each year, the endowment contributes funding to Brown’s operating budget, with the annual payout rate ranging from 4.5% to 5.5% of the average market value. Endowed funds for financial aid are particularly crucial, with the largest share of the endowment’s annual budget contributions (35%) designated for scholarships, fellowships and prizes. Among current Brown undergraduates, 47% of students receive need-based financial aid with an average aid package of $65,975, which covers approximately 72% of the standard cost of attendance.