Students in the garden at St Edmund Hall

The Oxford Endowment Fund

The Oxford Endowment Fund aims to preserve and grow the value of perpetuity capital across the collegiate University of Oxford, while providing a sustainable income stream

AUM has increased to £3bn through a combination of performance and inflows from investors.

Investment objective

The specific investment objective of the Oxford Endowment Fund is to grow our investors’ capital by an average of 5% per annum in real terms, and to achieve this at a lower volatility than would be experienced by investing solely in the public equity markets. This investment objective is long term and not a year by year measure.

The specific distribution policy is to distribute 4.25% of the average of the past 20 quarters’ NAV, subject to a cap of 10% increase and a floor of the last year’s distribution. This formula has the benefit of providing a more predictable stream of income.

Performance to 31 December 2017

  • Assets under management
  • Annual distribution

The Oxford Endowment Fund has distributed £496m and has returned 10.0% annualised since its inception.

Asset allocation at 31 December 2017

Derived from our investment philosophy, our asset allocation is designed to generate significant real returns. This naturally leads to a focus on investments in equities, with property and credit used as diversified sources of return. We refer to these as risk assets.