University of Washington endowment chalks up 11.3% fiscal-year return

University of Washington's consolidated endowment fund returned a net 11.3% for the fiscal year ended June 30, below its policy benchmark return of 14.5%, according to an investment report included with materials for the Seattle-based university's upcoming Sept. 12 board of regents meeting.

For the five and 10 years ended June 30, the $5.5 billion endowment fund returned an annualized net 8.8% and 7.7%, respectively, above their respective benchmarks of 7.8% and 6.4%.

The endowment fund had returned a net 6% for the fiscal year ended June 30, 2023.

For the most recent fiscal year, the endowment fund likely benefited from a strong public equities market, which included the Russell 3000 index returning 23.1% for the year ended June 30.

The endowment’s actual allocation to developed markets equities was considerably overweight its 37% target at 43% as of June 30. Returns by asset class, however, were not provided in the investment report.

As of June 30, the endowment fund’s actual allocation was 43% developed markets equities, 18% private equity, 17% absolute return, 10% emerging markets equities, 7% fixed income, 4% real assets and 1% opportunistic strategies.

The target allocation is 37% developed markets equities, 20% private equity, 17% absolute return, 10% emerging markets equities, 8% fixed income, 5% real assets and 3% opportunistic investments.