University of Florida Foundation's $1.9 billion endowment pool returned a net 11.8% in the fiscal year ended June 30, said Steve Orlando, university spokesman.
The Gainesville-based foundation's pool outperformed its 60% MSCI All Country World index and 40% Bloomberg Barclays Aggregate Bond index benchmark return, which for the fiscal year was 10%. Annualized three- and five-returns ended June 30 were 4.2% and 7%, respectively. The three-, five- and 10-year returns were 130 basis points, 30 basis points and 40 basis points above their 60/40 benchmark returns, respectively.
According to an investment report from the University of Florida Investment Corp., which manages the endowment, the outperformance for the fiscal year was driven by particularly strong returns from the natural resources and public equities portfolios, the latter of which the report said was primarily due to "active management in global and emerging markets mandates." The report also noted that the hedged strategies portfolio also outperformed its benchmark, and while private equity had positive performance, its performance was below its benchmark. Mr. Orlando said specific asset class returns are not available.
The pool's targets are 82.5% growth strategies, which are made up of public equities, private equity and hedged strategies; 10% liquidity, with fixed income and cash; and 7.5% real assets, which consists of natural resources and real estate.
Actual allocations as of June 30 were 78.8% growth, 11% real assets and 10.2% liquidity.