Finance Office

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Target Asset Allocation

It is recognized that the achievement of a long-term, real return to both support current spending needs and maintain the purchasing power of the endowment will require a significant allocation to higher returning asset classes.  To help moderate the volatility of the portfolio, the USD Endowment seeks to achieve diversification both within and across asset classes.  In addition, the endowment includes significant allocations to asset classes that would provide a meaningful hedge against deflation and inflation.  The target asset allocation for the USD Endowment is shown below.

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U.S. Equities
Ownership interest in domestic corporations.

International Equities
Ownership interest in international corporations in both developed and emerging countries.

Marketable Alternatives
Investment managers with hedge fund strategies including long/short equities, diversified arbitrage, event-driven arbitrage, and distressed securities.

Venture Capital
Private investments in the equity of early to early-stage, high potential, high risk, start up companies.

Private Equity
Equity securities in private companies that generally exhibit high cash flows and stable operations.

Real Assets
Public and private investments in real estate, oil and gas, mining, timber, commodities, and other natural resource sectors.

Bonds
Global bonds, bank loans, high-yield bonds, and inflation-linked bonds.

Cash
Government bond money market.

 

Actual Asset Allocation Over Time

The actual asset allocation for the USD Endowment over the ten-year period ending June 30, 2013, is shown below.

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