University of Washington endowment nets 5.8% return for fiscal year

University of Washington's consolidated endowment fund returned a net 5.8% for the fiscal year ended June 30.

The $3.6 billion endowment fund's return fell short of its 6.2% policy benchmark, said Victor Balta, spokesman for the Seattle-based university, in an email Friday.

For the three, five and 10 years ended June 30, the endowment fund returned an annualized net 9.6%, 6.7% and 8.9%, above the respective benchmark returns of 8.6%, 5.1% and 8%.

The fund returned a net 9.6% for the fiscal year ended June 30, 2018.

Among individual asset classes, opportunistic strategies returned a net 7.2% for the fiscal year, while developed markets equities returned a net 5.2% and emerging markets equities returned a net 3.3%. The three asset classes share a common benchmark, which returned 5.7%.

Fixed income returned a net 3.4%, below its 6.2% policy benchmark return, while absolute return saw a net 1.4%, below its 2.4% policy benchmark.As of June 30, the endowment fund's actual allocation was 32% developed markets equities; 19% emerging markets equities; 18% absolute return; 13% private equity; 11% fixed income; 5% real assets; and 2% opportunistic strategies.

The target allocation is 30% developed markets equities; 19% absolute return; 17% emerging markets equities; 15% private equity; 11% fixed income; 5% real assets; and 3% opportunistic strategies.