The endowments for the universities of California, Texas, and Virginia reported that their investment portfolios returned 8.9%, 11.27%, and 11.4%, respectively for the fiscal year ending June 30, 2018.
The University of California’s endowment’s investment portfolio returned 8.9% for the fiscal year ending June 30 to help raise its total asset value to $12.3 billion, from $10.8 billion at the same time last year. Private equity led the endowment higher, as the asset class returned 22.7% for the portfolio this year, easily beating its benchmark of 16.3%, followed by public equities, which returned 11.5% and just missed its benchmark of 11.6%.
While California’s endowment surpassed its benchmark of 8.5%, it was well below last year’s return of 15.1%, and lags other major university endowments, many of which have reported double-digit gains for the second straight year. It now has five-, 10-, 20-, and 25-year annualized returns of 8.8%, 6.4%, 6.7%, and 8.8%, respectively, ahead of its benchmark returns of 7.7%, 5.6%, 5.9%, and 8.3% for the same time periods respectively.
Meanwhile, the University of Texas’ Permanent University Fund reported a preliminary return of 11.27% for the fiscal year ended June 30, to bring its asset value to $21.5 billion, and help boost the endowment’s total value to $32.2 billion, up from $29.3 billion at the end of fiscal year 2017.
Texas reported three-, five-, and 10-year annualized returns of 7.52%, 8.28%, and 5.79%, respectively. The fund’s current asset allocation is 43% in developed markets equities, 17% in emerging markets equities, 16% in natural resources, 11% in investment-grade fixed income, 8% in real estate, and 5% in credit-related fixed income.
And the University of Virginia’s endowment returned 11.4% for the fiscal year ended June 30, easily beating its benchmark of 7.6%, and bringing its total asset value to $9.5 billion, up from $8.6 billion at the same time last year.
The endowment reported five-, 10-, and 20-year annualized returns of 9.6%, 7.9%, and 10.9%, respectively, ahead of its benchmark’s five-, 10-, and 20-year annualized returns of 7.7%, 6.0%, and 6.1%, respectively. The fund has 65.4% of its assets in public and private equities, 13.1% in marketable alternatives and credit, 8.3% in fixed income, 6.5% in resources, 4.5% in real estate, and 2.2% in cash and currency.