Year in Review

Endowment Funds 2020 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, 2020 was -0.5%, and 4.6%, 4.6% and 7.1% for the three, five and ten-year trailing periods, respectively.  The net asset market value of the University’s total endowment was $532.2 million on June 30, 2020.

The portfolio started Fiscal Year 2020 off strong, but the negative economic impact of the COVID-19 pandemic on global equity markets hurt the portfolio in February and March.  Capital markets rebounded to end the fiscal year, bringing the Pool to a slight negative return for the year. Over this time, US equity markets significantly outperformed international equity markets, with growth and technology stocks performing particularly well while value stocks and real estate lagged. Positive contributors to the Pool over the fiscal year included US equities, venture capital, private equity and fixed income. More challenging exposures for the year included international equities, emerging markets and real assets. While overseas markets lagged domestic ones during the last year, reasonable valuation levels point towards future potential.

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