The latest fiscal-year returns reflect a difficult market environment for public equities and fixed income. For the year ended June 30, the Russell 3000 index and Bloomberg U.S. Aggregate Bond index returned -13.9% and -10.3%, respectively, in sharp contrast to returns of 44.2% and 4.6% for the year ended June 30, 2021.
UVIMCO's return falls short of the median return of -3.6% the 10 endowments whose latest fiscal-year returns have been tracked by Pensions & Investments as of Monday.
While for the latest fiscal year, buyout funds led all asset classes with a gross return of 46%, the asset class made up less than 4.2% of the endowment pool's assets. Real assets chalked up a gross return of 39.2%, absolute return had a gross return of 11.2% and venture capital returned 5.3%.
The rest of the endowment pool's asset classes posted negative returns. Credit returned a gross -4.2%; growth equity, a gross -7.4%; fixed income, -7.8%; public equities, -22.6%; and long/short equity, -22.9%.
The annual report did not provide benchmarks for individual asset classes.
As of June 30, the endowment pool's actual allocation was 24.5% public equities, 14.6% real assets, 12.5% growth equity, 11.9% long/short equity, 11.4% venture capital, 7.7% absolute return, 6.1% fixed income, 4.2% buyout funds, 3.9% credit, 1.8% and 1.4% overlays.
