Penn State University records 3.9% net return for fiscal year

Pennsylvania State University's long-term investment pool returned a net 3.9% for the fiscal year ended June 30, well below the pool's strategic allocation benchmark of 10.1%, according to a fiscal-year update posted on the University Park, Pa.-based school's website.

For the three, five and 10 years ended June 30, the investment pool returned an annualized net 12.4%, 10.1% and 9%, respectively, above the respective benchmarks of 8.2%, 7.3% and 7.4%.

The long-term investment pool had returned a net 0.1% for the fiscal year ended June 30, 2022, well above the strategic allocation benchmark return of -12.7% for the period.

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 their respective returns of -13.9% and -10.3% for the year ended June 30, 2022.

Returns by asset class were not provided.

As of June 30, the long-term investment pool's actual allocation was 24.3% private equity, 23% domestic equities, 14.5% fixed income, 13.1% real assets, 9.8% international equities, 9.7% opportunistic investments and 5.6% global equities.

Penn State's long-term investment pool has $6.2 billion in assets, which includes $4.5 billion in endowment assets.