Princeton University endowment posts -1.5% return

Princeton University announced that the net return for its endowment was -1.5% for the fiscal year ended June 30, compared to a net return of 46.9% for the prior fiscal year.

Endowment assets, managed by the Princeton University Investment Co., fell 5% to $35.8 billion from $37.7 billion a year earlier.

The endowment returned an annualized 12.2% for the past 10 years and 11% over the 20-year period ended June 30, said a Friday university news release, which didn't provide additional details. A university spokesman could not be reached for comment.

"The challenging market environment in the past year reinforces the university's long-term investment strategy: long-term investments that lead to long-term results that support long-term goals," Jim Matteo, treasurer and vice president for finance, said in the news release.

According to the Princeton University Investment Co. website, the endowment's target allocations are 30% private equity, 18% real assets, 13% developed markets equity, 9% emerging markets equity, 6% fixed income and cash, and 24% for independent return.

The website defines independent return as "consisting of investment vehicles that seek high absolute returns that are independent of broad market returns." Such investments can include short positions as well as traditional long positions.