Baylor University's $2 billion endowment returned a net 6.4% for the fiscal year ended June 30, said David Morehead, chief investment officer.
For the three and five years ended June 30, the endowment returned an annualized net 14.4% and 10.9%, respectively. Morehead did not provide benchmark information in an Oct. 27 email, but the Waco, Texas-based university provide an annualized return of 7.8% for the endowment's strategic benchmark for the five-year period.
The endowment had returned a net 1.2% for the fiscal year ended June 30, 2022.
For the most recent fiscal year, the endowment's return exceeded the median return of 4.4% among the 31 college and university endowments tracked by Pensions & Investments as of Oct. 30.
The university did not provide returns by asset class, but Morehead said, "Like everyone, private equity was down as its marketable corollary (growth equities) also came down. We'd lightened up on public growth equities in December 2021, so didn't get as caught up in the growth equity swoon. And then re-allocated to the category in June and October 2022."
As of June 30, the endowment's actual allocation was 45% private investments, 35% public equities, 20% marketable alternatives and de minimus fixed income, Morehead said.
According to the university's website, the endowment targets are 40% private investments, 30% public equities, 20% marketable alternatives and 10% fixed income.