University of Minnesota Foundation, Minneapolis, returned 5.7% on its consolidated endowment fund investments for the fiscal year ended June 30, said a report on the university board of regents' website.
The overall one-year return outperformed the fund's 2.1% custom benchmark return, said Stuart Mason, university chief investment officer, in a report to the board. Assets totaled $1.29 billion as of June 30, up 1.9% from a year earlier.
Its five-year return was 11.7% vs. its benchmark's 10% return, and for 10 years, the fund returned 6% vs. the 6.9% benchmark. Multiyear returns are annualized and are as of June 30.
For the year, performance was driven by a 16.1% return on the fund's 26.1% private capital allocation, according to Mr. Mason's report. That topped the asset class' 7.6% benchmark return.
Venture capital, comprising 14% of the private capital allocation, returned 28%.
Among the fund's other asset classes, absolute return had a 4.2% return for the year vs. its custom benchmark's 3.3%; real assets, 3.9% vs. -2% for the benchmark; public equity, 2.1% vs. 0.8%; risk-mitigating fixed income, 1% vs. -0.8%; and return-generating fixed income, -1.7% vs. -1.1%.
The fund's asset allocation as of June 30 was 32.9% public equity, 26.1% private capital, 11.6% real assets, 10.1% risk-mitigating fixed income, 8.9% absolute return, 7% return-generating fixed income and the remainder in derivatives and cash.
Mr. Mason could not be reached by press time for further information.