University of Arkansas Endowment Surges 15.4% 

Strong returns help boost the university’s endowment over $1 billion.

The University of Arkansas’ investments returned 15.4% for the fiscal year 2017 ended June 30, helping boost its endowment to over $1 billion for the first time.

The returns easily beat the broad universe of US colleges and universities, which generated a median 12.9% return for 2017, and surpassed bigger university endowments such as Harvard, Yale, Stanford, Princeton, Duke, and Brown.

“This is a major milestone and to be celebrated because the health of our endowment is an indicator of future success and security for the university,” said Chancellor Joseph Steinmetz. “The endowment is our nest egg, our insurance that we can continue to provide scholarships and fellowships, support the excellent work of faculty, and keep programs thriving regardless of external forces.”

For the second quarter ended June 30, the endowment’s total return pool gained 3.5%, while its annualized three-, five-, and 10-year returns are 5.8%, 9.3%, and 5.1% respectively.

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At the end June, the value of the pooled investments managed by the University of Arkansas Foundation stood at $996 million. An early fiscal year 2018 private gift support generated by Campaign Arkansas, including $110 million in endowed funds from the Walton Family Charitable Support Foundation,  pushed the total over the $1 billion threshold.

Campaign Arkansas is the ongoing capital campaign for the University of Arkansas to raise private gift support for the university’s academic mission and other key priorities. The campaign’s goal is to raise $1 billion.

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Preqin: September Hedge Funds Post Highest Monthly Return Since January

Euro-dominated CTAs struggle.

Hedge funds in September saw the highest monthly returns since January, with gains of 1.43%, according to research from Preqin.

Continuing the industry’s positive 2017 performance, September’s increase brings the Preqin All-Strategies Hedge Fund benchmark to 8.28% year-to-date gains, a feat the report says is “the highest return at this stage of the year for the benchmark since 2013.”

In terms of top-level strategies, the highest September returns in the category came from event-driven strategies funds at 2.12% (8.40% YTD), followed by equity strategies funds at 1.93% (10.72% YTD). In addition, September makes the seventh time this year where all top-level strategies recorded positive monthly returns.

Activist funds increased by 2.73% in September, bringing their 12-month cumulative returns to 13.98%. Discretionary and volatility funds recorded 1.78% and 1.47% increases, respectively. Systematic funds returned 0.77%.

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CTAs however, saw some negative returns at -1.83%, the lowest monthly return since August 2016’s -1.90%. European CTAs experienced the brunt of this impact, posting returns of -3.99%

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