University of Illinois System's $1.1 billion endowment pool returned a net 9.4% for the fiscal year ended June 30.
The endowment pool's return exceeded its benchmark return of 9.2% for the period, according to an annual report posted on the Champaign-based university's website.
For the three, five and 10 years ended June 30, the pool returned an annualized net 3.3%, 7.3% and 7.9%, respectively, below the respective benchmarks of 3.5%, 7.9% and 6.8%.
The endowment pool returned a net 6.4% for the fiscal year ended June 30, 2023.
For the most recent fiscal year, asset class returns were not provided, but the report attributed recent outperformance to “fixed income and real estate while farmland and investments that are no longer active in the portfolio detracted over long-term term periods.” The report also noted the "passive approach to public equities was accretive as a small concentration of stocks generated an outsized portion of gains that are often diluted with active management.”
As of June 30, the endowment pool's actual allocation was 25% domestic equities, 23% international equities, 21% global fixed income, 10% private equity, 8% diversifying strategies, 7% farmland and 6% real estate.
The endowment pool overseen by the system's office of investments is separate from the endowment funds overseen by the University of Illinois Foundation. Fiscal-year returns for the foundation have yet to be released.
