Annualized Returns Percentages The university’s endowment earned 34.5% for fiscal year 2021, net of all fees and expenses. The Policy Benchmark is a weighted average of market indexes that represent each asset class in the endowment’s policy asset allocation. The Global 60/40 portfolio is defined as 60% MSCI ACWI index and 40% Barclays Aggregate index. Target Asset Allocation Percentages PORTFOLIO 1 YR 3 YRS 5 YRS 7 YRS 10 YRS Lehigh Portfolio 34.5 13.5 13.0 9.0 8.4 Benchmark Portfolio 30.1 13.1 12.5 9.2 9.4 Global 60/40 Portfolio 22.2 11.2 10.1 7.4 7.5 ASSET CLASS FISCAL YEAR 2021 RETURN FISCAL YEAR 2021 TARGET ALLOCATION COMMENTARY Public Equity 40 45 The Public Equity portfolio slightly outperformed its benchmark, the MSCI ACWI, with outperformance driven predominantly by manager selection. Private Equity 70 20 The Private Equity portfolio was the largest contributor to the endowment’s fiscal year performance and significantly outperformed its benchmark, the Russell 3000 +3% — with growth equity and venture capital managers posting the strongest returns. Absolute Return 12 20 The Absolute Return portfolio underperformed its benchmark but provided a consistent return largely uncorrelated to the broader market. The portfolio’s positive performance was achieved from both hedge fund and private credit managers which were able to capitalize on largely idiosyncratic opportunities. Real Estate 13 5 The Real Estate portfolio meaningfully outperformed its benchmark, the NCREIF. The rebound from 2020 lows was led by investments in industrial and multifamily assets. Treasuries & Cash -2 10 The 10 Year Treasury increased during the fiscal year from 0.7% to 1.5%, which led to positive relative returns as we remained overweight cash relative to treasuries. 11
RkJQdWJsaXNoZXIy MTA0OTQ5OA==