University of Virginia Investment Management Co., which manages investments for the Charlottesville, Va., university endowment, achieved a 13.4% investment return for the fiscal year ended June 30, topping its benchmark return of 11.3%, according to the company's annual report.
The 13.4% return is for the university's long-term pool, which represents $6 billion in assets divided among the endowment (61%), university-related foundations (22%) and university long-term operating reserves (17%), according to the annual report posted on the University of Virginia Investment Management Co.'s website.
The long-term pool had an investment return of 5.1% and total assets of $5.43 billion for the fiscal year ended June 30, 2012, according to the annual report.
The annual report also noted that the UVIMCO had launched a short-term pool in October 2012. “The primary purpose of the short-term pool is to preserve principal and provide a low-cost, stable, highly liquid and secure investment vehicle to UVIMCO's investors,” wrote Lawrence E. Kochard, UVIMCO's CEO and chief investment officer, in a preface to the annual report.
“The addition of the short-term pool also enables the university and its foundations to tailor individualized portfolios of UVIMCO-managed investments to each organization's desired level of risk and liquidity,” Mr. Kochard wrote.
The short-term pool had assets of $81.3 million as of June 30, according to the annual report. The long-term pool invests its cash in the short-term pool, which represented 90% of the short-term pool assets as of June 30, the annual report said.
For the 20-year period ended June 30, the long-term pool had an annualized return of 11.8%, well above the 7.2% benchmark. “The long-term pool is well positioned for the future,” Mr. Kochard wrote.
Mr. Kochard could not be reached for comment by press time.