The Idaho Endowment Fund Investment Board reported a gross return of 10.89% for the fiscal year that ended June 30, just edging its target benchmark’s 10.87% return, according to its quarterly performance review. The returns raised the fund’s asset value to $3.12 billion from $2.87 billion at the same time a year earlier.
The investment board, which manages the proceeds generated by Idaho’s endowment lands, reported a three-year return of 7.74%, a five-year return of 7.20% and a 10-year return of 7.94%, compared with its benchmark’s returns of 7.46%, 6.90% and 7.68%, respectively, over the same time periods.
As of June 30, the fund’s asset allocation was 38.9% domestic equity, 22.7% domestic fixed income, 19.1% international equity, 9.5% global equity, 9.3% real estate, 0.4% cash and 0.1% equitization.
According to the performance review, performed by investment consultant Callan, total equities returned 17.5% for the investment portfolio during the fiscal year and 6.9% over the final quarter. U.S. equities led the way, surging 19.4% and 8.7%, respectively, over the fiscal year and quarter, while international equities appreciated 12.7% for the year and 2.7% during the quarter.
Fixed-income investments declined 0.2% for the year and 0.6% during the quarter, while real estate, which is lagged by a quarter, underperformed over the trailing year and returned 1.4% during the fiscal year and 0.2% for the quarter.
Meanwhile, the Idaho Board of Land Commissioners, which oversees the endowment fund investment board and the Idaho Department of Lands and which consists of the governor and several other state officials, recently announced it will distribute a record $103.2 million to endowment beneficiaries—mostly public schools, colleges, universities and veterans’ homes—in fiscal 2025. The previous record was the $100.3 million distribution slated for fiscal 2024.
“We were pleased with the endowment fund’s investment returns in Fiscal Year 2023 despite efforts by the Federal Reserve to fight inflation,” Chris Anton, the Idaho Endowment Fund Investment Board’s manager of investments, said in a release. “Financial markets experienced a volatile year, but the U.S. economy has remained very resilient.”