The Ohio State University Foundation 2012 Endowment Report

July 1, 2011 - June 30, 2012


Jonathan D. Hook, Vice President and Chief Investment Officer

Jonathan D. Hook, Vice President and Chief Investment Officer

The fiscal year ending June 30, 2012, was challenging for investment markets. The Long-Term Investment Pool net return was essentially flat at (.1%), as compared with the All Country World Index (ACWI), which experienced a negative return of (6%). The three-year annualized return for the pool was positive at 10.5%, exceeding its overall policy benchmark of 8.9%. 

Macroeconomic issues weighed heavily on global markets throughout the fiscal year. These included the U.S. debt ceiling and deficit, the health care debate, the uncertainty of tax policy beyond 2012, the ongoing European debt crisis, the sell-off of emerging markets investments, and the slow-down in China. 

These issues caused a great deal of daily volatility in the markets, which were generally very negative in the first half of the fiscal year and mildly positive in the second half. International and emerging markets were negative (14-16%) for the fiscal year, while U.S. equity markets were mixed with large-cap stocks being positive and small and mid-cap stocks being negative. U.S. government bonds won the day as money poured into U.S. debt as a “safe” haven. 

The investment landscape remains challenging for fiscal year 2013. The Pool is positioned to preserve capital and take advantage of opportunities that surface. The Pool has a long-term investment horizon and is well-diversified with world-class managers and specialists assisting in managing the investments. 

We appreciate the generosity of our donors, and we will always strive to achieve long-term investment returns that preserve the real purchasing power of the Endowment and distributions to its beneficiaries.