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.
Target asset allocation for the USD Endowment
- International Equities: 18%
- Marketable Alternatives: 11%
- U.S. Equities: 20%
- Real Assets: 9%
- Bonds: 18%
- Private Equity/Venture Capital: 22%
- Cash: 2%
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, 2025, is shown below.
Actual Asset Allocation Over Time
- 2015
- U.S. Equities 19.5%
- Marketable Alternatives 22.8%
- International Equities 19.7%
- Private Equity and Venture Capital 7.9%
- Real Assets 15.2%
- Bonds 12.5%
- Cash 4.3%
- 2016
- U.S. Equities 20.6%
- Marketable Alternatives 21.3%
- International Equities 16.3%
- Private Equity and Venture Capital 8.7%
- Real Assets 14.7%
- Bonds 12%
- Cash 3.4%
- 2017
- U.S. Equities 21.2%
- Marketable Alternatives 23%
- International Equities 17%
- Private Equity and Venture Capital 8.9%
- Real Assets 15.6%
- Bonds 14.1%
- Cash 3.4%
- 2018
- U.S. Equities 19.6%
- Marketable Alternatives 17.5%
- International Equities 22.8%
- Private Equity and Venture Capital 9.8%
- Real Assets 14.1%
- Bonds 12.7%
- Cash 3.1%
- 2019
- U.S. Equities 19%
- Marketable Alternatives 16.4%
- International Equities 21.5%
- Private Equity and Venture Capital 13.1%
- Real Assets 14.7%
- Bonds 13.8%
- Cash 1.8%
- 2020
- U.S. Equities 19.8%
- Marketable Alternatives 14.7%
- International Equities 20.1%
- Private Equity and Venture Capital 17.6%
- Real Assets 13%
- Bonds 14%
- Cash 3%
- 2021
- U.S. Equities 20.2%
- Marketable Alternatives 11.6%
- International Equities 18.7%
- Private Equity and Venture Capital 23.7%
- Real Assets 10.3%
- Bonds 13.2%
- Cash 4.3%
- 2022
- U.S. Equities 17.7%
- Marketable Alternatives 13%
- International Equities 15.9%
- Private Equity and Venture Capital 24.4%
- Real Assets 8.9%
- Bonds 13.9%
- Cash 3%
- 2023
- U.S. Equities 20.1%
- Marketable Alternatives 7.8%
- International Equities 18.5%
- Private Equity and Venture Capital 25%
- Real Assets 9%
- Bonds 17.3%
- Cash 2.3%
- 2024
- U.S. Equities 21.6%
- Marketable Alternatives 8.0%
- International Equities 18.0%
- Private Equity and Venture Capital 24.5%
- Real Assets 8.3%
- Bonds 17.5%
- Cash 2.1%
- 2025
- U.S. Equities 21.9%
- Marketable Alternatives 7.8%
- International Equities 19.0%
- Private Equity and Venture Capital 21.6%
- Real Assets 8.5%
- Bonds 17.5%
- Cash 3.7%