Investment and Capital Management Report
Investment and Capital Management (ICM) manages the University of Sydney’s investment portfolio, which comprises endowment capital, operating funds and commercial real estate investments. The pool of capital is divided among three investment portfolios: short-term, medium-term and long-term funds.
The long-term funds primarily consist of the University’s philanthropic capital. The highly experienced ICM team invests the funds in a selection of defensive, growth and alternative asset classes in line with an approved Strategic Asset Allocation framework. For the long-term funds portfolio, the framework is designed to generate returns that allow for yearly withdrawals of five per cent while preserving the capital in real terms.
Investments in debt securities across the three portfolios are managed in house. All other investment classes are managed externally by selected sector specialist managers. Both the long-term and medium-term investment portfolios were fully unitised in early 2012.
Long-term funds performance in 2012
The investment environment improved markedly over the second half of 2012, with most asset classes posting solid returns for the year compared to 2011. The result was a strong positive annual return for the long-term funds of 13.5 per cent.
As shown in the chart, the return on the University’s long-term funds was above the approved internal benchmark over all periods shown, and above the NSW Treasury Corporation Hour-Glass Long-term Growth Facility over the rolling three-year and rolling five-year periods.
- The University’s returns are after underlying external manager 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 external manager fees, and have been grossed up to account for internal administration fees.
- Past performance is not a reliable indicator of future performance.
Copies of the report
If you would like a copy of ICM's 2012 investment report, please email Meghan Knox; Manager, Donor Relations: .