Endowment Funds 2025 Investments Report
The University of San Diego’s endowment represents the combined support of numerous individual gifts that are directed, usually by specific donor request, to scholarships, professorships, research and other essential activities. The endowment is comprised of pooled funds invested over the long-term (the “Pool”), and other assets including real estate and cash equivalents. The Pool’s investment performance for the year ending June 30, 2025 was up 9.4%. Returns for the past three, five and 10-year periods were up 7.6%, 9.3% and 7.0%, respectively. The net asset market value of the University’s total endowment was $766.7 million on June 30, 2025.
While there was significant volatility in the markets in fiscal year 2025, markets recovered in the fourth quarter allowing diversified portfolios to bounce back from earlier drawdowns and post solid results. US stocks (S&P 500) returned 15.3%, while international developed equities (MSCI EAFE) surged 17.7%. Core US bonds (Bloomberg US Aggregate) delivered a positive 6.1% return as inflation moderated and the Federal Reserve maintained rates for much of the fiscal year, with market expectations shifting toward potential rate cuts as inflation moderated, supporting both equity multiples and bond returns. Private equity rebounded with positive returns, though private equity lagged the public markets, while venture capital and real estate also lagged. Returns from the University's US stock, International stock and Bond managers all outperformed their respective benchmarks for this period. However, performance from the University's private investments were up 5.7% and were a drag on overall returns for the fiscal year, though they have generated a trailing five-year return of 12.0% and were a positive contributor to performance over this period.
The overall investment goal for the Pool is as follows: 1) to provide a relatively predictable, stable and constant return sufficient to meet the spending needs of the University; 2) to preserve and enhance the real (inflation-adjusted) purchasing power of the Pool through active management; and 3) to increase the Pool through unspent income and gains, appreciated value, gifts and other appropriated funds. The allocation is reviewed regularly and is rebalanced as necessary. Currently, the Pool is comprised of domestic and international public equities, hedge funds, private and venture capital, real assets, fixed income holdings and cash and cash equivalents.
Katy Roig
Vice President for Finance & CFO