The foundation’s endowment update did not specify whether returns were gross or net of fees and did not provide returns by asset class.
For the last fiscal year, the overall negative performance of the foundation’s endowment portfolio reflects a difficult market environment in the public markets. For the year ended June 30, the Russell 3000 Index and Bloomberg US Aggregate Bond Index posted returns of -13.9% and -10.3%, respectively, in stark contrast to returns of 44. 2% and 4.6% for the year ended June 30, 2021. Endowment returns also fell below the median return of -4.1% among the 15 university endowments whose returns for the year ended June 30, 2021. June were followed by Pensions and investments starting Monday.
The foundation’s endowment portfolio has a larger allocation to global public equities than many of its academic counterparts with an actual allocation of 44% as of June 30. The report on the foundation’s website cited its global equity asset class outperforming “one-year market benchmark return of -15.0%, due to strong investment performance in UMFIA Global Shares.”
As of June 30, the actual allocation was 44% global equities, 28% private equity, 25.8% credit and reinsurance and 2.2% treasury bonds.
Endowment assets are managed by University of Minnesota Foundation Investment Advisors, a nonprofit subsidiary of the foundation.
Foundation spokesman Lloyd Latty could not immediately be reached for further information.