Endowment and Investment Management

Endowment Highlights

FOR THE YEAR ENDING JUNE 30, 2025

  • USF’s endowment is invested in a diversified portfolio valued at approximately $603 million, which has increased by $37 millionin the last year.
  • The endowment’s average annual return for the past 10 years was 8%, ranking the endowment in the top 7% of its peer group.
  • The total USF endowment has grown 106% over the last 10 years, increasing from approximately $293 million to $603 million.
  • There are currently over 600 individual endowment funds at USF.
  • Over $7 million in new gifts and contributions were added to the USF endowment during the past year. 
  • Spending from the endowment during the fiscal year ending May 31, 2025 provided over $22 million to support USF students, faculty, and programs.

Investment Policy Statement

Endowment Report

The endowment at the University of San Francisco is an important part of our overall financial well-being. Endowment funds provide an ongoing source of stability and growth and are critical to supporting the university and our students through periods of economic volatility. Over time, the growth of our endowment provides a continuous, strong, and permanent source of financial support for the university. It allows USF to make commitments to the future, knowing resources and income will be reliable and available.

Total Value of the Endowment

The year ending June 30, 2025 was another period of strong growth for the endowment, with the total value of the endowment increasing from $566 million to $603 million. The cumulative growth of the endowment, which has increased 106% over the last 10 years, is a result of investment appreciation, new donor contributions, and funds designated by USF’s Board of Trustees. All have played an important role in the overall growth of the endowment.

Endowment Performance 

The annual rate of return for the endowment for the year ending June 30, 2025 was 9.8% net of investment fees, compared to the peer benchmark of 11.0%. This strong investment return for the year was a continuation of the 12.2% gain in the prior year. The university’s composite portfolio return was lower than its peer benchmark for the year, but much higher than its peer benchmark over a 10-year timeframe. The endowment’s long-term return benefitted from asset allocation and investment manager decisions that have been made over the past two decades. For the year, private investments such as venture capital and private equity allocations, did not keep pace with the public markets, and had a detrimental effect on endowment returns. However, the endowment has benefited from these investments over the long-term timeframe. A higher allocation to both public and private U.S. equity investments, as well as diversifying assets, in conjunction with a lower allocation to international and traditional fixed income investments, helped the portfolio exceed both target and peer benchmarks over the last decade.

Over the past 10 years, the managed endowment has achieved an annualized rate of return of 8.4%, exceeding the InvestorForce peer benchmark of 6.9%, placing it in the top 8% of its peer group. The endowment’s annualized rate of return also exceeded the target of the Consumer Price Index (CPI) plus 5.0% for the 10-year period. The portfolio is designed to produce returns that exceed its long-term target over time, which allows the endowment to distribute 4.5% of the portfolio’s average market value over the last three years and to preserve purchasing power for future generations. 

Endowment Asset Allocation

Most of the assets within the endowment are pooled and invested in one managed endowment portfolio. The Investment Committee regularly monitors asset allocation targets and has constructed a diversified portfolio through the selection of active investment managers across multiple asset classes. These targets are based on a long-term investment horizon and are determined based on an ongoing assessment of expected risks, returns, and correlations across asset classes. As of June 30, 2025, the asset allocation was overweight to domestic equity, diversifying assets, and cash, and was underweight to these targets in all other categories. The Investment Committee re-balances the portfolio as needed, based on recommendations from an external consultant and USF management.

Asset Allocation as of June 30, 2025:

Domestic Public Equity 40%
Private Capital 20%
Diversifying Assets 14%
International Equity 13%
Fixed Income and Cash 10%
Real Assets/Other 3%