Investment and Capital Management (ICM) is charged with managing the University of Sydney’s overall investment portfolio comprising the endowment capital, operating funds and commercial real estate investments. The ICM team is highly experienced, with several members having spent more than 15 years in the financial markets. All University funds invested in debt securities are managed internally by the team, while funds invested in growth assets are managed externally by professional sector specialist managers. The team is supported by an external consultant adviser.
Given the perpetual nature of the University’s endowed capital, ICM seeks to generate an optimal risk-adjusted total return through the employment of a structured long-term investment philosophy based around strategic asset allocation targets.
Long-term endowment funds performance in 2011
Long-term endowment funds generally consist of bequests and endowments. The year 2011 was a negative one for most growth-orientated asset classes. The MSCI World (ex-Australia) Accumulation Index (hedged) closed the year 1.9 percent lower and the Australian equity market ended 2011 down by 11.0 percent. These outcomes reflected the ongoing concerns surrounding the European debt markets and the associated downturn in economic activity within Europe. Uncertainty surrounding growth in China and the United States also weighed on investor sentiment for most of the year. in the latter part of the year however, positive economic data emerged from the US and fear of a Chinese hard economic landing abated.
The return on the University’s long-term funds was above the relevant NSW Treasury Corporation Hour-Glass long-term growth facility and the internal approved benchmark over the one- and three-year periods.
Notes:
The University’s performance returns are after underlying external manager fees and equivalent. NSW Treasury Corporation administration fees, and inclusive of franking credits.
The NSW Treasury Corporation manages the Hour-Glass long-term growth facility, and is comparable to the University’s long-term funds in nature. The facility’s returns are after fees.
Past performance is not a reliable indicator of future performance.
Copies of the report
If you would like a copy of ICM's 2011 investment report, please email Meghan Knox; Manager, Donor Relations: .
