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September 26, 2013

Endowment allocation adjusted

The Board of Trustees investment committee has adjusted the asset allocation policy for the University’s consolidated endowment.

In a brief public meeting on Sept. 12, the committee accepted recommendations by Amy K. Marsh, chief investment officer and treasurer, to reduce the target allocation to the fixed income asset class from 12 percent to 10 percent and to increase the target allocation to the marketable alternatives asset class from 18 percent to 20 percent.

The endowment’s asset allocation policy now calls for:

• A target of 39 percent of the endowment’s market value in equities: 18 percent in domestic equity (with a range of 13-23 percent); 11 percent in international equities (with a range of 6-16 percent), and 10 percent in emerging markets equity (with a range of 5-15 percent.

• A target of 10 percent of the endowment’s market value in fixed income (with a range of 5-15 percent.)

• A target of 51 percent in alternatives: 20 percent in marketable alternatives (with a range of 15-25 percent); 15 percent in non-marketable alternatives (with a range of 10-20 percent), and 16 percent in real assets (with a range of 11-21 percent).

• A target of 0 percent in cash and equivalents (with a range of -5 to 5 percent).

Under University bylaws, the investment committee has the authority to approve endowment investment guidelines, objectives and spending policies.

—Kimberly K. Barlow

Filed under: Feature,Volume 46 Issue 3

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