University of Kentucky’s endowment returned a net 1.6% for the fiscal year ended June 30, lagging its 4.6% policy benchmark.
The top-performing asset class was real estate, which returned 10.1%, followed by private equity, 9%; domestic equity, 7.2%; long/short equity, 3.9%; absolute return, 2.5%; fixed income, 0.5%; and international equity, -3.2%. However, below benchmark returns for global tactical asset allocation (-5.5% vs. 5.1% benchmark) and diversified inflation strategies (-12.1% vs. 5.1% return) dragged down overall performance relative to its benchmark, said an endowment report provided by Todd Shupp, chief investment officer.
The $1.2 billion Lexington-based endowment has a target asset allocation of 14% long-biased long/short equity; 12% each broad U.S. equity, international equity, private equity and real estate; 10% each fixed income, absolute return and diversified inflation strategies; and 8% GTAA.
For the three, five and 10 years ended June 30, the endowment returned an annualized 9.7%, 9.3% and 5.1%, respectively, trailing its benchmarks of 10%, 9.7% and 5.6% in each of those periods.
