Key Takeaways
- • Williams College's endowment generated an 18.7 percent return in fiscal year 2026, its highest since 2021, according to Chief Investment Officer Abigail Wattley.
- • The endowment is now valued at $4.48 billion, after surpassing $4 billion for the first time since 2021 following inflation-adjusted growth of 15.2 percent.
- • The 18.7 percent return trails NESCAC peers Bowdoin (26 percent) and Hamilton (25.2 percent), but the college's 10-year average annual return stands at 11.7 percent.
- • The endowment funded 57 percent of the college's fiscal 2026 budget, with withdrawals of $166.5 million (4.7 percent) versus a planned $179 million (5 percent).
- • Spending is smoothed over multiple years, so the strong one-year return is not expected to immediately lift payouts; the full annual report is due in December.
Summary
The result follows a record 49.9 percent return in 2021, which lifted the endowment to $4.2 billion, and a loss of more than 11 percent in 2022. The endowment has grown steadily since 2023. After inflation, growth in fiscal 2026 was 15.2 percent, and the portfolio value has exceeded $4 billion for the first time since 2021. The college's Investment Office targets a return of 5 percent above inflation over 10 years, and its current 10-year average annual return is 11.7 percent.
Among NESCAC peers, the result is comparable but trails publicly released figures from Bowdoin (26 percent) and Hamilton (25.2 percent). Because the college is a non-profit with fewer than 3,000 students, it does not pay tax on endowment withdrawals, unlike larger peers.
The endowment funded 57 percent of the college's fiscal 2026 budget. Withdrawals totaled $166.5 million, or 4.7 percent of the endowment's value, below the planned $179 million (5 percent). Wattley said the college intentionally smooths spending over multiple years given the volatility of one-year returns, so a single strong year will not immediately translate into a significant spending increase. She added that sustained growth could strengthen the college's ability to fund financial aid and other priorities over time.
Capital projects, such as the new Williams College Museum of Art, are funded separately through donations and bonds and do not affect endowment performance, Wattley wrote. The full annual endowment report, with detail on specific holdings such as global equities and hedge funds, is scheduled for release in December.
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