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Endowments and Foundations

University of Virginia endowment posts 12.4% return, CIO/CEO to depart at end of 2017

University of Virginia Investment Management Co., Charlottesville, reported its endowment returned 12.4% for the fiscal year ended June 30, according to a report posted on its website Monday.

The $8.62 billion endowment had a policy benchmark of 11.4% for the fiscal year. Returns for other periods include 6% for three years, 10% for five years, 7.3% for 10 years and 11% for 20 years. All multiyear returns are annualized. It returned -1.5% in the previous fiscal year.

The passive policy portfolio benchmark asset allocation is 60% equity, 30% fixed income and 10% real assets.

As of June 30, the allocation was 26.7% public equity, 19.6% long/short equity, 15.7% private equity, 14.5% marketable alternatives and credit, 11.4% fixed income and cash, 6.6% resources and 5.5% real estate.

Separately, the university announced Lawrence Kochard, chief investment officer and CEO, is leaving at the end of the year to pursue money management opportunities outside of endowments and foundations.

The university said it's in the process of hiring a firm to search for a replacement. Mr. Kochard oversees a team of 35 people at the University of Virginia Investment Management Co.

Mr. Kochard joined UVIMCO in 2011 from Georgetown University in Washington.

UVIMCO Chairman David MacFarlane praised Mr. Kochard's leadership in a statement, saying that "one of his greatest legacies is the buildout of an exceptional and cohesive group of investment and operational professionals with broad and deep experience."

Bloomberg contributed to this story.