UTIMCO endowments return 9% for year

Two educational endowments managed by University of Texas/Texas A&M Investment Management Co., Austin, posted positive preliminary returns in the fiscal year ended Aug. 31.

A UTIMCO performance report on the company's website showed that the preliminary net return of the $24.4 billion Permanent University Fund was 9.5% for the 12 months ended Aug. 31 and was 9.4% for the $13.9 billion Long Term Fund.

Both funds returned 4.5% as of Aug. 31, 2019.

Net annualized preliminary returns as of Aug. 31 for the Permanent University Fund were 7.7% for three years; 7.8% for five years; and 8% over 10 years.

The Long Term Fund's preliminary net returns as of Aug. 31 were 7.8% for three years, 7.9% for five years; and 8.1% over the 10-year period.

Benchmark performance and individual asset class net returns were not provided in UTIMCO's report.

As of Aug. 31, the policy asset allocation for both funds was 61% for global equity broken down into 21% for developed market equity and private equity; directional hedge funds, 11%; and emerging market equity, 8%.

The target allocation to real return strategies was 19% with 8% of plan assets in real estate; natural resources, 7%; infrastructure, 3%; and inflation-linked bonds, 1%.

The funds' each had an 18% allocation to stable value sub-asset classes including 10% to stable-value hedge funds; fixed income, 7%; and cash, 1%.

Each endowment fund also had a 2% allocation to strategic partners.

In a year-to-year comparison, the Permanent University Fund's AUM increased 6.8% in the fiscal year ended Aug. 31 while the Long Term Fund was up 21.6% UTMICO investment reports showed.