Grinnell College Announces Fiscal Year 2024 Endowment Results
The Grinnell College endowment generated a net positive return of 10.7% for the fiscal year ending June 30, 2024.
Grinnell’s investment strategy is designed to achieve strong risk-adjusted returns over a multi-year horizon rather than maximizing returns in any single year. Investment income has historically been particularly important in the growth of Grinnell’s resources. Over the past decade, the endowment generated investment gains in excess of $1.6 billion and provided over $775 million to support Grinnell’s institutional mission. As of June 30, 2024, the endowment’s annualized three-, five-, and ten-year returns were 0.2%, 9.0%, and 7.7%, respectively.
During FY 2024 the endowment’s market value increased $164.9 million with an ending value of $2.67 billion as of June 30, 2024. Inflows to the endowment included $259.9 million in investment gains and $5.3 million in philanthropic gifts. Total payout in support of the operating budget and reserves were $112.5 million. Reserves provide resources for unforeseen circumstances such as weather damage and the pandemic.
“The annual payout from the endowment, along with contributions from philanthropy, enables Grinnell College to ensure access for exceptional students. For the 2024-25 academic year, the College has awarded $77.2 million in institutional financial aid, meeting 100% of demonstrated financial need without required loans. Grinnell is one of only a handful of colleges that makes this commitment,” said President Anne F. Harris. “We are fortunate to have committed investment committee, along with an outstanding professional staff in the investment office. Their collective work enables the College to change students’ lives today and secure Grinnell’s mission into the future.”
Grinnell is one of only a handful of colleges that meets 100% of demonstrated financial need without required loans. Among current Grinnell students, 68% receive need-based financial aid with an average aid package of $67,476.
More than 60% of the College’s operating budget is supported by the endowment’s annual payout. To preserve the endowment’s buying power for future generations, the annual payout has ranged from 4.0% to 4.5% of the endowment’s average market value, contributing $108.4 million to support the College’s operations in FY 2025.
“The results for FY 2024 reflect the work that’s been done in the endowment over the past several years,” said Chief Investment Officer Jainen Thayer. “Market conditions last year led to variable performance across asset classes and global markets.” As in FY 2023, private investments generally lagged the return from public markets in FY 2024, reversing a trend that had dominated the previous two decades. We will simply not see the full positive impact of many of the private investment decisions we’ve made recently for several years,” he added. “It can be easy to lose that longer perspective during years like FY 2023 and 2024, but we remain committed to our investment approach built on identifying the absolute best opportunities for the investment portfolio and partnerships with exceptional investment managers globally. That is the formula that results in strong endowment performance over the long term.”
About one third of Grinnell’s endowment is made up of charitable gifts designated by donors to be spent for specific purposes or to support the College’s general operations. Nearly 700 individual endowed funds comprise the Grinnell endowment today. Many of these funds are directed to specific purposes by their original donors, such as supporting financial aid, funding academic excellence that promotes positive change, and opening doors to a range of successful post-graduate career outcomes.