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Endowments

Arizona trust returns 11.25% in latest fiscal year

Arizona Permanent Land Endowment Trust Fund, Phoenix, returned a net 11.25% in the fiscal year ended June 30, 12 basis points above its benchmark, said Mark Swenson, deputy treasurer-policy research in the Arizona State Treasurer's office, which oversees the $5.6 billion endowment.

The best-performing asset class was domestic small-cap equities, which returned 22.48% (compared to its benchmark of 22.47%); domestic midcap equities, 18.69% (18.57%); domestic large-cap equities, 17.86% (17.9%); domestic short-duration fixed income, 0.84% (0.61%); and domestic long-duration fixed income, 0.07% (-0.28%).

As of June 30, the actual allocation was: 37.2% domestic long-duration fixed income, 35.04% domestic large-cap equity, 14.94% domestic midcap equity, 10.02% domestic small-cap equity, and the remainder in short-duration fixed income.

As mandated by the state constitution, the fund's target allocation is 60% equities and 40% fixed income. With equities, the targets to large-cap, midcap and small-cap are 35%, 15% and 10% of the total fund, respectively, while long-duration and short-duration fixed income have targets of 39.5% and 0.5% of the total fund, respectively.