Report of the Treasurer

Fiscal year 2011 culminated with Princeton University in strong financial condition, having weathered the economic turbulence of the past few years and emerging as sound as ever. Princeton managed
to strengthen its balance sheet during the year while tightening expenditures in fulfillment of a two-year budget savings plan established during the depths of the 2009 financial crisis. Net assets for
the fiscal year ended June 30, 2011 increased by $2.6 billion, or 17.6 percent, primarily due to sharp investment gains, supplemented by a comfortable operating surplus. Total net assets of $17.3
billion at year end were just $300,000 shy of the high-water mark set in 2008. The overall return of 21.9 percent from Princeton’s managed investment portfolio was on par with its peer group of large
university endowments.

Princeton has held the line on price increases and has substantially improved undergraduate financial aid and graduate fellowship programs. As a result, net tuition has increased at an average rate of only 1 percent per year for 10 years, expanding accessibility to students in a wider range of socioeconomic groups.