Lois Cox, CFA, CFP
Senior Vice President
Paul Chai, CFA, CAIA
The primary objective of the long-term investment pool is to earn a return exceeding the distributions to purpose, the management fee and an inflation factor allowing for intergenerational equity.
Guiding Investment PrinciplesManage actively: Excess returns can be generated via actively managed portfolios across global public and private asset classes.
|Stay diversified: Appropriate diversification drives long-term risk-adjusted returns and consistent absolute return generation.|
|Seek value: Allocate capital assets that are attractively priced and use a long-term investment time horizon as a sustainable advantage.|
|Focus on long-term investment horizon: Achieve excess risk-adjusted returns over full-market cycles, not just over quarters and year.|
The long-term investment pool grew to combined assets of $741.1 million in the second quarter of FY21 and returned 9.05% in the quarter and 16.49% for the fiscal year-to-date period. With two-thirds of the pool’s assets invested in global equities, both public and private, strength in these markets contributed to the pool’s solid returns.
During fiscal years 2018 and 2019, the Kansas State University Foundation's performance ranked in the top quartile among 800+ college/university endowments and foundations according to the National Association of College and University Business Officers (NACUBO).
Over the longer twenty-year period, the fund returned 6.31 percent (annualized) — also outperforming that period’s benchmark. The charts below may also be helpful in answering your questions more fully.
Annual Fiscal Year Returns
|Asset class||Benchmark||Strategic allocation|
67% MSCI ACWI Index
33% Cambridge Associates Global All PE Index
|Diversifying strategies||HFRX Absolute Return Index||7%|
50% Bloomberg Commodity Index
25% NCREIF ODCE
25% Barclays US TIPS Index
|Deflation hedge||Barclays US Aggregate Index||10%|