The University of Michigan’s endowment climbed $1.3 billion to a market value of $19.2 billion during fiscal year 2024, with distributions at a record $506 million.

The university’s long-term investment portfolio has seen an annualized return of 9.6% in the 25 years since U-M established a separate investment office — well into the top quartile for endowments at higher education institutions in the United States, according to Cambridge Associates.

Investments in innovation and climate solutions with meaningful positive impact continue to drive positive investment performance, Chief Investment Officer Erik Lundberg said.

U-M officials estimate the university could offset 25% of the endowment’s carbon footprint by the end of the current fiscal year and be net zero by the end of FY ’30 from already identified investments, depending on the methods for measuring the offset which are still in development.

“U-M has become an established leader in energy transition investments in higher education and is well on its way to transition the investment portfolio to net zero much sooner than the 2050 goal,” Lundberg said.

A detailed endowment investment report will be available after the Dec. 5 Board of Regents meeting.

Endowment distributions of $506 million in FY ’24, which ended June 30, support a variety of university functions, such as student scholarships and clinical care. The annual distributions — funds available for university units to spend — have increased every year since 2000 and totaled about $6.8 billion over that period.

“Our endowment consistently contributes hundreds of millions of dollars annually to support the university’s critical mission as a public research institution and health care provider,” said Geoffrey Chatas, executive vice president and chief financial officer.

“Our students, our patients, our employees and the taxpayers of Michigan reap the benefits of continued strong investment performance.”

The university’s endowment is a collection of more than 13,000 separate funds. These funds provide support that is restricted in most cases for specific purposes such as educational programs, research and professorships.

On a per-student basis, U-M’s endowment ranks 80th among all U.S. universities, according to a recent report from the National Association of College and University Business Officers. Unlike several private peer institutions with similarly sized or larger endowments, U-M’s endowment supports a much larger student body and campus community.