1% in an 8% World

Every year I do a table that updates endowment and pension returns over the year prior.  Since most funds fiscal year ends June 30th, we should have results trickling in in the next month or two.  For a primer on why these funds are going to never ever hit their 8% target read these two pieces:  8%?  Try 4% and What if 8% is Really 0%?  I also liked Bogle – The Lessons of History. ( I was considering titling this post “The Revenge of 60/40” in reference to an old post from 2009).

US Stocks:  5.45%

Foreign Stocks:  -13.38%

US 10 Year:  16.28%

REITs:  12.65%

Commodities:  -10.74%

60/40:  10.41%

Ivy buy and hold allocation from book:  2.15%

Median public pension: 1.15%

CalPers:  1%

Stanford:  1.0%

Yale:  4.7%

Harvard: -0.1%

Penn:  1.6%

MIT:  8.0%

Duke:  1.0%

UVa:  5.1%


Here is also a cool list of outsourcing firms for endowment management from Charles Skorina:

Skorina’s Ultimate Outsourcer List, Vers 2.0 – July, 2012

N.B.:  AUM amounts represent discretionary only unless otherwise noted



Agility (Perella Weinberg)Christopher Bittman,CIO New York, NY(303) 813-7910 >$2 bncbittman@pwpartners.com
Angeles Investment AdvisorsLeslie B. Kautz, Principal Santa Monica, CA(310) 393-6300 $38 bn, $1.4 bil discretionlkautz@angelesadvisors.com
BalentineJeff Adams, President Atlanta, GA404-537-4800 $1.4 bnjadams@balentine.com
BlackRockNancy Everett, Mgn Dir New York, NY212-810-5092 $55 bnnancy.everett@blackrock.com
BNY Mellon Asset MgmtCynthia Steer, Mgn Dir New York, NY(212) 635-7261 $238 bn full, partial, advisorycynthiafryer.steer@bnymellon.com
Cambridge AssociatesDeirdre Nectow, Mgn Dir Boston, MA(617) 457-1781 $7.3 bn discretionary, $115 bn totaldnectow@cambridgeassociates.com
Clearbrook FinancialFred Weiss, Mgn Dir Princeton, NJ(212) 683-6686 $30 bn advisoryfweiss@clrbrk.com
CommonfundSarah E. Clark, Mgn Dir Wilton, CT203-563 -­5000 $12 bn discretion, $8 bil outsourcedsclark@cfund.org
CornerStone PartnersDon Laing, Senior Partner Charlottesville, VA(434) 296-1400 >$3 bndlaing@cstonellc.com
Covariance Capital Management  (TIAA-CREF)Shannon Morton, Mgn Dir Houston, TX(713) 770-2000 $1 bnsmorton@covariancecapital.com
Fiduciary Management AssociatesRobert L. Hudon, Jr., Mrktg Chicago, IL(312) 334-0253 $2 bnrhudon@fmausa.com
Fiduciary Research & ConsultingJohn Boich, Pres & CIO San Francisco, CA(415) 671-4020 $7 bnjohn@fiduciaryresearch.com
Fund Evaluation Group (FEG)Gary Price, Mgn Principal Cincinnati, OH(513) 977-4400 $1.9 bngprice@feg.com
Global Endowment ManagementStephanie Lynch, Partner Charlotte, NC(704) 333-8282 $3.5 bnslynch@globalendowment.com
Goldman SachsKane Brenan, Mgn Dir New York, NY(212) 855-9851 AUM not availablekane.brenan@gs.com
Hall Capital PartnersRick Grand-Jean, Mgn Dir San Francisco, CA(415) 288-0544 $22.4 bn, $2.7 bn institution discretionrgrandjean@hallcapital.com
Hewitt EnnisKnuppStephen T. Cummings, Principal Chicago, IL(312) 715-1700 $13.4 bns.cummings@ennisknupp.com
HighVistaBrian Chu, Partner Boston, MA(617) 406-6500 >$3.5 bnbchu@highvista.com
Hirtle CallaghanNicole Kraus, Director Institutional W. Conshohocken, PA(610) 943-4192 $22 bnnkraus@hirtlecallaghan.com
InvestureAlice Handy, CIO Charlottesville,VA(434) 220-0280 $8.5 bnahandy@investure.com
J.P. Morgan Asset MgmtMonica Issar, Head E & F Group New York, NY(212) 464-2852 $2.0 trillion, $23 bn outsourcemonica.issar@jpmorgan.com
MakenaBill Miller, Partner & COO Menlo Park, CA(650) 926-0510 $16 bnbmiller@makenacap.com
MercerSue Crosby, Partner New York, NY(212) 345-9264 $51 bnsue.crosby@mercer.com
Mangham AssociatesJoel R. Mangham, Principal Charlottesville, VA(434) 973-2223 $2.3 bnjoel@manghamassociates.com
Morgan Creek Capital ManagementMark Yusko, CEO & CIO Chapel Hill, NC(919) 933-4004 $8 bnmyusko@morgancreekcap.com
Morgan Stanley (Graystone Consulting)Franco Piarulli, Mgn Dir New York, NY(914) 225-7254 $22 bnfranco.piarulli@morganstanley.com
NEPCSteve Charlton, Partner Cambridge, MA(617) 374-1300 $2.6 bnscharlton@nepc.com
New Providence Asset MgLance Odden, Mgn Dir New York, NY(646) 292-1200 $2.4 bnlance@newprov.com
Northern TrustThomas R. Benzmiller, MD Chicago, IL(312) 557-3322 $40 bn discretion, $20 bn advisorytb58@ntrs.com
Okabena AdvisorsChristine K. Galloway, CEO Minneapolis, MN(612) 217-6225 $1.3 bncgalloway@okabena.com
Pacific Global AdvisorsDavid A. Oaten, Mgn Dir New York, NY(212) 405-6400 $20 bndavid.oaten@pacificga.com
Partners CapitalWill Fox, America Bus Dev Boston, MA & UK(617) 292-2570 $2.8 bn US office, $7.5 bn globallywill.fox@partners-cap.com
Post Rock AdvisorsCarol B. Einiger, President New York, NY(212) 838-7100 AUM not availableeiniger@postrockadvisors.com
Pyramis Global AdvisorsMichael Barnett, EVP institutional sales Smith?eld, RI(401) 292-4741 $6.7 bn discretionary, $180 bn globalmichael.barnett.pyr@pyramis.com
Rocaton Investment AdvisorsJohn Hartman, MD Bus Dev Norwalk, CT(203) 621-1723 $520 mil discretion, $300 bn advisoryjohn.hartman@rocaton.com
Rockefeller FinancialMichael R. Marsh, Dir Nonprofit Invest Services NY & D.C.(202) 719-3012 $10 bn discretionary, $34 bn totalmmarsh@rockco.com
Russell InvestmentsJoseph Gelly, Jr., Mgn Dir Outsourcing Seattle, WA(206) 505-7877 $83.5 bnjgelly@russell.com
Salient PartnersJohn A. Blaisdell, CEO Houston, TX(713) 993-4675 $17 bnjblaisdell@salientpartners.com
SECOR Asset ManagementTony Kao, Mgn Principal New York, NY(212) 980-7350 $7.5 bn  global pension advisorytony@secor-am.com
Segal RogerscaseyPeter Gerlings, Sr VP Institu Darien, CT(617) 355-5035 >$10 bn discretionarypgerlings@segalrc.com
SEIPaul Klauder, VP Bus Dev Oaks, PA(610) 676-2225 $59 bnpklauder@seic.com
Spider Management CompanyStephen Kneeley, CEO Richmond, VA(804) 289-6010 $2.9 bnskneeley@richmond.edu
Spruce Private InvestorsJohn Bailey, CEO Stamford, CT(203) 428-2600 $3.2 bnjbailey@spruceinvest.com
State Street Global AdvsrsKathleen Mann, Sr Mgn DirMatt Kelley, VP Outsourcing Boston, MA(617) 664-2141(617) 664-2433 $41 bnkathleen_mann@ssga.commatthew_kelley@ssga.com
Strategic Investment GroupDeborah Boedicker, Partner Arlington, VA(703) 236-1620 $30.3 bn, 70% discretionarydboedicker@strategicgroup.com
Towers WatsonTom Brust, Head Bus Dev New York, NY(917) 538-3899 $50 bntom.brust@towerswatson.com
The Fund for FoundationsMike Winter, Mgn Member W.Conshohocken(610) 684-8200 $9.2 bn full discretionmwinter@tiff.org
UBS AGWilliam Drobny, Head Institutional Marketing Chicago, IL(312) 525-7100 $12.8 bnwilliam.drobny@ubs.com
Wilshire AssociatesJulia K. Bonafede, President Consulting Santa Monica, CA(310) 451-3051 $9.7 bn discretion, $720 bn totaljbonafede@wilshire.com
Wurts & AssociatesJeffrey C. Scott, CIO Seattle, WA(206) 622-3700 $1.3 bnjscott@wurts.com