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Asset Owners

University of California posts 8.9% return for endowment, 7.8% for pension fund

University of California, Oakland, saw its $12.3 billion general endowment return a net 8.9% for the fiscal year ended June 30, topping its custom policy benchmark of 8.5%, according to investment results on the university system's website.

In addition, the university's $66.8 billion defined benefit plan returned a net 7.8% for the same period, compared to its custom benchmark of 8.4.%.

The endowment returned an annualized net 6.5% for the three years ended June 30, compared to the custom benchmark's 6.2%; 8.8% for the five-year period (benchmark 7.7%); 6.4% for 10 years (5.6%); and 6.7% for 20 years (5.6%).

The endowment returned 15.1% in the previous fiscal year.

The pension fund's annualized net return for the three years ended June 30 was 6.5%, compared to the benchmark's 6.6%; five years, 8.2% (7.7%); 10 years, 6.4% (5.8%); and 20 years, 6% (5.6%).

The previous fiscal year, the pension fund returned a net 14.5%.

The endowment saw a 11.5% equity return, just barely below the 11.6% return of its custom benchmark. Meanwhile, the university's pension fund had a 10.7% equity return, below its 11.6% benchmark.

For fixed income, the endowment returned 1%, compared to the custom benchmark's -0.4%, while the pension fund returned 0.6% (-0.4% benchmark); absolute-return strategies, 6.4% return for the endowment (5.5%) and 6.4% for the pension fund (5.5%); private equity, 22.7% for endowment and 19.1% for the pension fund (16.3% for each); and real estate, 9.7% for endowment and 8.8% for pension plan (7.1% for each).

The endowment's asset allocation as of June 30 was 41.8% public equity, 19.6% absolute return, 13.5% fixed income, 10.6% private equity, 7.5% cash, 4% real estate and 3% real assets.

The pension plan's allocation was 54.4% public equity, 20.1% fixed income, 9% cash, 5.5% absolute return, 4.7% real estate, 4.6% private equity and 1.7% real assets.