Ohio State University endowment returns 10.8% for fiscal year

Ohio State University's $7.9 billion long-term investment pool of endowment assets returned 10.8% for the fiscal year ended June 30.

The investment pool’s return fell short of its 15% benchmark for the period, according to an investment report included with materials for the Columbus-based university's Aug. 22 finance and investment committee meeting.

For the three, five and 10 years ended June 30, the LTIP returned an annualized 6.1%, 9.3% and 6.9%, respectively, compared with their respective benchmarks of 4.3%, 8.3% and 7%.

The investment pool had returned 6.9% for the fiscal year ended June 30, 2023.

The report did not specify whether the returns were gross or net of fees. Vishnu Srinivasan, vice president and chief investment officer, could not be immediately reached for further information.

For the most recent fiscal year, the top-performing asset class was public equities, which returned 16.7% for the year ended June 30 (below its benchmark return of 19.4%); followed by hedge funds at 13.1% (benchmark 8.5%); private equity, 6.5% (23.2%); cash and high-grade bonds, 6.4% (2.6%); real estate and infrastructure, 5.3% (1.5%); and legacy investments, -6.9% (-6.9%).

As of June 30, the long-term investment pool’s actual allocation was 39.3% public equities, 26.4% private equity, 19.4% hedge funds, 8.2% real estate and infrastructure, 3.6% legacy investments and the rest in cash and high-grade bonds.

The long-term 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.