MIT Endowment Returns 14.8% in Fiscal 2025

The endowment pool of the Massachusetts Institute of Technology, managed by the MIT Investment Management Co., returned 14.8% in fiscal 2025, according to a report from the university’s treasurer.

Endowment assets managed by MITIMCo reached $27.4 billion at the end of June, reaching the fund’s peak AUM, which was first reached in fiscal 2021. The university reported $37.7 billion in net assets, including retirement plans, operating funds and other investments.

Investment returns for MIT’s primary investment pool, Pool A, were an annualized 10.7% over the past 10 years, according to the report. The fund returned 8.9% in fiscal 2024, negative 2.9% in fiscal 2023 and negative 5.3% fiscal 2022.

In the treasurer’s report, MIT staff noted potential impacts of the federal tax on university endowments. Under July’s Big Beautiful Bill Act, large university endowments like MIT’s will be subject to tax rates as high as 8%, up from a previous 1.4%, beginning in fiscal 2027.

Never miss a story — sign up for CIO newsletters to stay up-to-date on the latest institutional investment industry news. 

“We are considering how best to respond to the substantial increase in the endowment tax and will continue advocating to maintain our decades-long partnership with the federal government to advance the nation’s interests through scientific discovery,” the report stated.

In fiscal 2025, support from the endowment for operating expenses increased 5.7% to $1.57 billion, with the effective spending rate on pooled investment funds standing at 5%. Distributions from the endowment supported approximately 50% of undergraduate tuition, according to MIT.