Baylor College of Medicine’s endowment, Houston, returned a net 3.9% for the fiscal year ended June 30, surpassing its 3% benchmark return said William Walker, vice president and chief investment officer.
Top contributors were private equity, with a 24% return, and real estate, 16.7%. Among the other asset classes, domestic equity returned 1.4%; domestic fixed income, 0.3%; and international equity, -4.5%.
Despite returning 1.4%, domestic equity significantly underperformed its 7.1% custom benchmark, due in part to manager underperformance and an overweight to small-cap and midcap equity, Mr. Walker said.
As of June 30, the endowment had an asset allocation of 15.6% private investments, 13.8% U.S. large-cap equity, 13.3% international equity, 12.1% U.S. small-cap equity, 11.5% domestic fixed income, 10.9% each U.S. midcap equity and real assets, 9.1% emerging markets equity and 2.8% cash.
For the three, five and 10 years ended June 30, the endowment returned an annualized 12.1%, 12.2% and 7.8%, respectively, exceeding its benchmarks of 11.6%, 11.5% and 6.3% in each of those periods.
Baylor College of Medicine is an independent medical school in Houston. Its endowment is separate from the Waco, Texas-based Baylor University.