North Carolina State endowment defies benchmark with 3.2% return

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The $1.7 billion North Carolina State Investment Fund is an investment pool comprised of the assets of North Carolina State University’s endowment fund, its alumni association, and seven foundations associated. Its positive performance for the last fiscal year sits well above the median of -4.2% among the 36 university endowments whose returns for the period were tracked by Pensions and investments from Tuesday.

NCSIF is just one of seven endowment funds to have had a positive return so far. Low returns from endowments reflected a challenging market environment during the year ended June 30, particularly within public equities and fixed income securities. 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.

For the most recent fiscal year, the investment fund’s best-performing asset class was real estate, which returned 47.5%, according to a webcast of the State of Endowments 2022 report. university. Next come energy and natural resources, which brought in 42.9%; private equity, which returned 33.1%; private credit, 20%; diversification strategies, 8.2%; opportunistic fixed income, -6.9%; core fixed income, -8.4%; long/short equities, -11.5%; and public equities, -19.8%.

The investment fund’s target allocation is 33% long bias equities, 22% private equity, 15% long/short equities, 11% fixed income, 6% diversification strategies and real estate, 5% energy and natural resources and 2% cash. .

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