University of Florida Foundation's $1.5 billion endowment pool returned a net -3.2% in the fiscal year ended June 30, a report from University of Florida Investment Corp. said.
The Gainesville-based foundation's pool underperformed its 60% MSCI All Country World index and 40% Barclays Aggregate Bond index benchmark return, which for the fiscal year was 1.4%. Annualized three- and five-returns ending June 30 were 4.8% and 4.7%, respectively. The three- and five-year returns were 10 basis points below and 80 basis points above, respectively, their 60/40 benchmark returns.
The report cited underperformance in the pool's hedged strategies and natural resources portfolios as the main drivers behind the overall pool lagging behind their benchmarks, and noted that fixed income, private equity and real estate portfolios had positive returns, although they also underperformed their benchmarks. Public equities outperformed the Morgan Stanley Capital International All-Country World Index's one-year return of -3.7% but did post a negative return. The report did not give specific asset class return numbers.
The pool's targets are 80% growth strategies, which are made up of public equities, private equity and hedged strategies; 12.5% inflation, which consists of natural resources and real estate; and 7.5% liquidity, with fixed income and cash.
Actual allocations as of June 30 were 81.3% growth, 11.2% inflation and 7.5% liquidity.
UFICO manages a total of $2.7 billion for the University of Florida Foundation, University of Florida Research Foundation, University of Florida Athletic Association, and Shands Teaching Hospital and Clinics at the University of Florida.
Steve Orlando, university spokesman, was not immediately available to provide further information.