Endowment Funds 2026 Investments Report
The University of San Diego’s endowment represents the collective impact of thousands of donor gifts dedicated to funding scholarships, endowed professorships, groundbreaking research, and essential campus operations. As of June 30, 2026, the total market value of the University’s net endowment assets stood at $856.9 million. The vast majority of these funds are invested over a long-term horizon within the pooled endowment (the “Pool”), along with select direct real estate holdings and cash reserves.
For the fiscal year ending June 30, 2026, the Pool delivered a total return of 15.5%. Annualized returns for the 3-, 5-, and 10-year periods were 11.0%, 6.0%, and 9.0%, respectively, demonstrating sustained long-term performance across market cycles.
Market Environment & Portfolio Performance
Fiscal year 2026 was marked by notable market volatility alongside robust absolute returns across primary asset classes. The fiscal year opened with positive momentum carried over from 2025, driven by continued artificial intelligence innovation and resilient corporate profitability. Market volatility spiked sharply in early 2026 amid geopolitical tensions in the Middle East and rising energy prices; however, global equities rebounded strongly into the spring as supply concerns eased and technology capital expenditure remained robust. Broad U.S. equities (Russell 3000) posted a 22.8% gain, International Developed Equities (MSCI EAFE) returned 20.2%, and Emerging Markets (MSCI EM) advanced 43.5%. Fixed Income (Bloomberg US Aggregate) generated a steady 3.7% return as credit fundamentals held firm in an elevated rate environment.
USD’s public equity and fixed income managers outperformed their respective benchmarks over the period. The University’s private investment portfolio generated a solid 12.4% return for the year, and continues to fulfill its role as a key long-term return driver relative to public markets over multi-year horizons.
Investment Objectives & Asset Allocation
The overall investment strategy for the Pool is guided by three core objectives:
- Support Ongoing Operations: Provide a predictable, stable stream of revenue to meet the University’s current spending and operational needs.
- Preserve Purchasing Power: Protect and enhance the inflation-adjusted value of the portfolio over the long term through disciplined asset allocation.
- Grow the Endowment Base: Expand the Pool over time through reinvested income, capital appreciation, and new gift additions.
The Investment Committee of the Board of Trustees regularly reviews and rebalances the asset allocation to maintain appropriate diversification. The Pool’s portfolio spans U.S. and international public equities, private equity and venture capital, marketable alternatives, real assets, fixed income, and cash liquidity.
Katy Roig
Vice President for Finance & CFO