University of Florida Foundation's $2.5 billion endowment pool returned a net 7.2% for the fiscal year ended June 30.
The Gainesville-based foundation's endowment pool underperformed its primary benchmark return of 8.1% for the period, according to a performance report on the foundation's website.
For the three, five and 10 years ended June 30, the endowment pool returned an annualized net 1.7%, 7.8% and 6.6% respectively, below their respective primary benchmark returns of 10.2%, 9.3% and 7.9%.
The foundation’s primary benchmark return is the consumer price index plus the 5% average gross spending rate for the endowment.
The endowment pool returned a net 5.2% for the fiscal year ended June 30, 2023.
For the most recent fiscal year, the report said the endowment pool's underperformance was “primarily driven by the muted returns realized by the significant allocation to private strategies.”
Among the 53 college and university endowments whose most recent returns have been tracked by Pensions & Investments as of Dec. 3, the foundation’s endowment pool had the fifth-lowest return and was well below the median return of 9.6% for the universe.
Returns by specific asset class were not provided.
As of June 30, the endowment pool's actual allocation was 82.8% growth (public equities, hedged strategies and private equity), 9.8% diversifying (hedged strategies) and 7.4% liquidity (fixed income and cash).
The target allocation is 85% growth, and 7.5% each diversifying and liquidity.
