Investment portfolio update
The Ohio State University Long Term Investment Pool (LTIP) generated a return of 1.20% for the fiscal year ending June 30, 2019, marked by unfavorable performance of legacy asset allocations.
The university’s portfolio includes a diversified mix of global equities (62.3%), global fixed income (30.5%), and real assets (7.2%) with an ending market value of $5.2 billion as of June 30, 2019.
Legacy illiquid natural resources investments made between 2010 and 2014 negatively affected the total fund’s returns for four of the last five years. In FY19, the natural resources portfolio contributed -2.80% to overall performance.
Further diminishing current year outcomes were three underperforming asset allocation decisions resulting in -1.95%. Additionally, current year outcomes are impacted by adopting a change to the accounting methodology of the illiquid investment portfolios to a one quarter lagged basis, which will provide for improved, more timely reporting throughout the year. The -1.04% reduction in FY19 as a result of the reporting change will be reversed in FY20.