Kamehameha Schools' $15.1 billion endowment returned a net 6.7% for the fiscal year ended June 30.
The Honolulu-based institute's return exceeded the composite benchmark's return of 6.2% for the period, according to consolidated financial statements posted on its website.
For the five and 10 years ended June 30, the endowment returned an annualized net 9.5% and 9%, respectively, above their respective benchmarks of 8.8% and 7.9%.
The endowment had posted a net return of 27.2% for the fiscal year ended June 30, 2021.
The positive return was significant for occurring during a time period of great volatility in the public equity and fixed-income markets. For the year ended June 30, the Russell 3000 index and Bloomberg U.S. Aggregate Bond index returned -13.9% and -10.3%, respectively, in sharp contrast to returns of 44.2% and 4.6% for the year ended June 30, 2021.
The endowment likely benefited from limited exposure to public equities and fixed income, with a combined allocation of 17.1% to both asset classes.
By asset class, the endowment's top performer was real assets, which returned a net 43% for the fiscal year ended June 30 (above its 32.6% benchmark return); followed by private equity at a net 27.4% (24.1% for its benchmark); Hawaii real estate, 22.2% (21.5%); cash equivalents, 0.1% (0.2%); absolute return, -5.9% (-5.5% benchmark); fixed income, -6.4% (-8.9%); and public equities, -21.5% (-18%).
The Hawaii real estate asset class, which as of June 30 had the highest percentage of assets — 31.5% — in the endowment, includes investments in partnerships for the primary purpose of investing in Hawaii real estate, both in traditional land holdings and improved commercial properties, which includes shopping centers, office buildings and warehouse facilities.
As of June 30, the endowment's actual allocation was 31.5% Hawaii real estate, 23.5% private equity, 20% absolute return, 15.8% public equities, 4.6% real assets, and 2.3% each cash equivalents and fixed income.
Kamehameha Schools is an institute established in 1884 to create educational opportunities in perpetuity for Native Hawaiians.
