University of Houston endowment chalks up 9.6% fiscal-year return

University of Houston System's $1.1 billion endowment returned 9.6% for the fiscal year ended June 30.

The endowment's return equaled its dynamic benchmark return of 9.6% for the period, according to a performance report shown in a webcast of the system's Aug. 21 endowment management committee meeting.

For the three, five and 10 years ended June 30, the endowment returned an annualized 4%, 9.3% and 6.9%, respectively, compared with their respective benchmarks of 4.6%, 8% and 6.2%.

The endowment had returned 6.2% for the fiscal year ended June 30, 2023.

The performance report did not specify whether the returns were gross or net of fees.

For the most recent fiscal year, strong performance in public equities was the primary driver of the positive returns.

By asset class for the endowment, public equities was the top performer with a return of 16% (below the benchmark return of 19.4%); followed by private debt at 11.2% (6.4% benchmark); hedge funds, 10.7% (8.5%); bonds and cash, 7.6% (6.3%); marketable real assets, 6.1% (7.2%); private equity, 5.2% (4.5%); and private real assets, -0.5% (2.8%).

As of June 30, the endowment's actual allocation was 40.4% public equities, 36.1% private markets, 15.2% bonds and cash, 6.5% hedge funds and 1.8% liquid real assets.

The target allocation is 46% public equities, 31% private markets, 15% bonds and cash, 5% hedge funds and 3% real assets.