University distributes most of student financial aid endowment // The Observer

Notre Dame’s breakdown of spending from its endowment was $426 million for fiscal year 2019, with nearly a third of the total going toward student financial aid, according to a statement from October 15 press from the University.

For the 2019-2020 academic year, Notre Dame will distribute more than $154 million in need-based aid for undergraduates. This amount of grants has more than doubled since 2009, according to the press release.

Nearly half of Notre Dame’s undergraduates receive financial aid from the University’s endowment pool, with the median grant amount for freshmen with demonstrated financial need currently at $42, according to the release. $600. This financial assistance does not require any reimbursement.

While the pool started with a value of $13.1 billion, the endowment pool returned 7.2% for fiscal year 2019, so the year will end with a value of $13.8 billion. dollars.

Over the past 20 years, Notre Dame has ranked among the highest institutional investors, according to the release, earning an annualized return from the endowment pool of 10%. In addition to the high annualized return, a 60/40 blended equity and bond index has returned 5.5%, also over the past 20 years.

Notre Dame’s actively managed investment program, led by Scott Malpass, has added value relative to the 60/40 blended index of $8.3 billion over 20 years. During the same period, spending distributions in support of the University’s mission grew at an annualized rate of 9.5%, amounting to $4.6 billion, according to the press release. .

Malpass, vice president and chief investment officer, said in the statement that Notre Dame is working carefully to distribute endowment money in a way that makes effective use of donations from University benefactors.

“We are committed to exceptionally managing the generosity of our donors with prudent investment and spending policies,” Malpass said in the statement. “The growth of the endowment provides ever-increasing resources for financial aid, as well as for the great work done by our students and faculty around the world.”

Correction: An earlier version of this report incorrectly listed Notre Dame’s endowment as $429 million. This amount is the breakdown of endowment expenses. The Observer regrets this error.

Tags: Endowment, financial aid, investment