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.
UVIMCO's return for the most recent fiscal year fell short of the median return of 3.9% for the nine endowments whose latest fiscal-year returns have been tracked by Pensions & Investments as of Sept. 20.
"Our public equity and long/short equity portfolios suffered from outsized exposures to emerging markets, particularly China," UVIMCO's annual report executive summary states. "Additionally, our developed market managers were not able to fully capture the strong gains seen in domestic equities. Private investments significantly lagged public indices, with our private equity portfolio declining by 5.3% while global public equities rose substantially."
By asset class, the top performer was public equity, with a return of 8.2%; followed by long/short equity at 6.3%; real assets, 5.4%; credit, 4.9%; absolute return, 4.1%; cash, 3.2%; fixed income, -2.9%; and private equity, -5.3%.
The performance report did not provide benchmarks for individual asset classes.
As of June 30, the endowment pool's actual allocation was 27% public equity, 26.3% private equity, 15.1% real assets, 11.4% long/short equity, 9.8% absolute return, 6.3% fixed income, 3.8% credit and 0.3% cash.
According to the annual report executive summary, "Long term pool returns are presented gross of UVIMCO management and incentive fees but net of underlying manager fees."