Investment Report for Donors | Fiscal Year Ended June 30, 2019
Global capital markets experienced dramatic swings in volatility during the fiscal year. Much of the market activity focused on the direction of interest rate policy by the U.S. Federal Reserve. After nine rate increases since 2015, policymakers communicated an intention to pause, while bond markets subsequently priced in expected rate cuts. The current economic cycle in the United States is in its 10th year of expansion and has set a new record for duration, though plenty of threats persist.
The Pooled Investment Fund, including Miami University and Miami University Foundation endowments, finished the fiscal year ended June 30, 2019, with an estimated gain of 3.4% (excluding private capital that reports on a lag). The market value reached an all-time high of $558.6 million at year end.
The Miami endowments provide vital support through the annual spending distribution. The policy distributes 4% of the average market value of the last three years, resulting in a distribution of about $17. 5 million for the year. Over the last 10 years, the cumulative distributions have totaled over $170 million and have provided an important source of financial support to a wide variety of people and activities across the campuses.
Higher education faces many obstacles ranging from unfavorable demographic trends to stagnant state support and increasing sensitivity to tuition cost. Miami appreciates the support from our alumni and friends that has helped position the institution to address these challenges. This generosity will continue to be a critical source of funding for Miami's students and faculty as Miami implements its new strategic plan.
