Ohio State University endowment posts 6.9% return

Ohio State University's $7.4 billion long-term investment pool returned 6.9% for the fiscal year ended June 30, exceeding its 4.6% benchmark for the period, according to an investment report included with materials for the Columbus-based university's Aug. 17 finance and investment committee meeting.

For the three and five years ended June 30, the investment pool returned an annualized 11.7% and 7.4%, respectively, above the respective benchmarks of 7.4% and 6.8%.

The long-term investment pool had returned a net 1% for the fiscal year ended June 30, 2022.

The latest fiscal year's improved performance likely benefited from stronger market returns for the period in both equities and fixed income. For the year ended June 30, the Russell 3000 and Bloomberg U.S. Aggregate Bond index returned 19% and -0.2%, respectively, well above the respective returns of -13.9% and -10.3% for the year ended June 30, 2022.

By asset class, public equities had the top performance for the fiscal year ended June 30, posting a net return of 15.5% for the period (above its benchmark return of 16.5%), followed by real assets and infrastructure at 8.1% (above its 2% benchmark); hedge funds and credit, 6.6% (3.6%); cash and high-grade bonds, 0.1% (-0.9%); and private equity, -0.9% (-7.4%).

Private equity returns and benchmark both lag by one quarter.

As of June 30, the actual allocation of the long-term investment pool was 38.2% public equities, 27.6% private equity, 16.3% hedge funds and credit, 12.6% real assets and infrastructure, and 5.3% cash and high-grade bonds.

The target allocation is 35% public equities, 30% private equity, 12.5% each cash/high-grade bonds and hedge funds, and 10% real assets and infrastructure.