Princeton University's $18.2 billion endowment increased its exposure to domestic and international developed markets equities in an effort to boost liquidity, according to a report recently issued by the university's finance and treasury office.
The Princeton, N.J.-based endowment increased its target to domestic equities to 8% from 6.5% and its target to international developed markets equities to 6% from 5.5%.
The target to independent return, which the university describes as “consisting of investment vehicles that seek high absolute returns that are typically independent of broad market trends,” was dropped to 24% from 25%.
“Shifting exposure from independent return to other marketable equity categories was aimed at enhancing endowment liquidity,” according to the report.
Also, fixed income and cash were combined into a single asset class, with the combined target dropping to 5% from 6%.
Targets that remain unchanged are 23% each private equity and real assets, and 11% emerging markets equities.
The overall endowment's return in the fiscal year ended June 30 was 11.7%, with international developed markets equities having the best performance at 33.6%, followed by domestic equities, 21.6%. Other asset class returns were independent return, 16.5%; private equity, 10.1%; emerging markets equities, 8.3%; real assets, 7.6%; and fixed income and cash, 0.1%.
The endowment's actual allocation as of June 30 was 32.8% private equity, 21.2% independent return, 20.8% real assets, 7.8% emerging markets equities, 7.6% domestic equities, 5.4% international developed markets equities, and 4.4% fixed income and cash.
Andrew K. Golden, president at Princeton University Investment Co., which manages the endowment, could not be reached for further comment by press time.
