University of Virginia's $7.5 billion long-term pool returned 7.7% in the fiscal year ended June 30.
The total return exceeded the policy benchmark by 580 basis points, said the annual report of the University of Virginia Investment Management Co., Charlottesville.
Global equity gained just 1.2% and public real estate and global bonds returned 3.3% and 2.4%, respectively, but outsized returns of 32.9% in growth equity and 42% in venture portfolios drove performance, CEO and chief investment officer Lawrence Kochard wrote in the report. Losses in resources and credit investments “dampened” performance, he said.
The long-term pool's 12-month performance vs. global markets “is an interesting case study,” Mr. Kochard wrote. “Global markets finally exhibited the muted returns we have been expecting due to the high valuations across every asset class.” With the 7.7% return nearly matching a long-term return 7.5% forecast, “we are gratified that our unrelenting focus on long-term strategic asset allocation, portfolio tilts and manager selection resulted in a short-term return in line with long-term expectations even in the face of lackluster public markets,” he said.