Investing across multiple asset classes is key to growing the Endowment while appropriately managing overall risk. The portfolio asset allocation table below shows the actual fiscal year 2017 asset allocation for the various asset classes in which the Endowment is invested, along with the target weights developed by the Investments Committee (noted in parentheses).
A target composite benchmark is derived from this asset allocation to measure the Endowment’s performance. As the secondary objective, the Endowment seeks to outperform this composite benchmark over longer periods of time.
|Asset Class||Target||Actual (as of August 31, 2017)|
|High Yield Credit||5%||3.2%|
|Asset Class||Description of Asset Class|
|U.S. Equity||US equity securities, primarily invested in active strategies, across all sectors and market capitalizations as defined by the Russell 3000 index.|
|International Equity||Global investments in foreign equity securities in active strategies across developed and emerging market countries.|
|Fixed Income||Diversified portfolio of global fixed income investments, including both sovereign and corporate bonds.|
|High Yield Credit||Invested in various credit markets, including distressed debt and other credit instruments with fixed-income characteristics.|
|Absolute Return||Portfolio of long-short equity, event-driven and uncorrelated strategies, which aims to provide equity-like returns with a low correlation to global equities.|
|Private Investments||Investments in global buyout funds as well as venture capital.|
|Real Assets||Investments in energy, timber, real estate, and commodity funds.|
|Composite benchmark||Computed by multiplying the target weights of each asset class by the respective benchmark.|