University of Minnesota Foundation returns 7% for fiscal year

University of Minnesota Foundation's $3.3 billion endowment portfolio returned 7% for the fiscal year ended June 30.

The foundation's return fell just short of the policy benchmark return of 7.4% for the period, an endowment update on the Minneapolis-based university's website showed.

For the five and 10 years ended June 30, the endowment portfolio returned an annualized 9.2% and 8.5%, respectively, above their respective benchmarks of 6.5% and 7.1%.

The endowment portfolio had returned -5.8% for the fiscal year ended June 30, 2022.

The foundation's endowment update did not say whether the returns were gross or net of fees and did not provide returns by asset class.

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.

The foundation's return for the most recent fiscal year well exceeded the median return of 4.2% for the 12 endowments whose latest fiscal-year returns have been tracked by Pensions & Investments as of Oct. 5.

The endowment portfolio's target allocation is 56% global equity, 21% private equity, 18% credit and reinsurance, and 5% Treasury bonds.

Endowment assets are managed by University of Minnesota Foundation Investment Advisors, a nonprofit subsidiary of the foundation.