Campus News

Bowdoin College Investments Outpace National Average

Story posted January 24, 2007

Bowdoin College has announced that its endowment earned a return of 18.1 percent for the fiscal year ending June 30, 2006.

Bowdoin's rate of return was nearly double the 10.7 percent average return for other college and university endowments during the same period as reported on Monday, January 22, by the National Association of College and University Business Officers (NACUBO).

"These returns are impressive and essential for the College because they allow us to maintain the very high academic standards that have long been a hallmark of this College while also permitting us to provide access to superior students regardless of their economic circumstances," said Bowdoin President Barry Mills. "As our endowment grows, we ensure educational quality in a rapidly changing world for future generations of Bowdoin students. We also build confidence among our many generous donors that we have the expertise necessary to manage their gifts with sophistication in complex and uncertain times."

The value of Bowdoin's endowment was $673.44 million on June 30, 2006, up from $578.2 million on June 30, 2005. The annualized 10-year average return on the endowment is 11.5 percent, compared to the 10-year average return on investments for other colleges and universities, as reported by NACUBO, of 8.8 percent.

Bowdoin's current total operating budget is $123.5 million, of which $17.6 million is set aside for student financial aid. Twenty-two percent of Bowdoin's annual revenues come from the annual endowment distribution, as per the College's spending rule, with additional revenues coming from tuition and fees, donations from alumni, parents, foundations and friends of the College, and auxiliary services.

The Bowdoin endowment is managed by the College's Office of Investments, directed by Senior Vice President for Investments Paula Volent, CFA, who works closely with the investment committee of the Bowdoin College Board of Trustees.

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