Endowments and Foundations - Articles & White Papers
Institutional research and articles covering investment policy and practices at endowments, foundations, non-profits and charities. A number of white papers examine the so-called "endowment model" pioneered by the Harvard and Yale endowments; a well-diversified portfolio with a relatively high allocation to alternative investments. Other popular papers examine trends in asset allocation... by endowments and foundations, the quest for performance, and the potential for US foundation endowments to impact the world positively, investing according to an ESG or SRI philosophy. A key challenge for endowments, foundations and charities is to withdraw cash in a sustainable manner, and a number of reports look at sustainable "withdrawal rates". A number of broader investment concepts are considered from an endowment/foundation perspective, such as the outsourced chief investment officer (OCIO) model, risk management and active equity investment. Further research articles and surveys in this section cover issues related to endowment performance, investment risk tolerance, and strategies for nonprofit institutional investors.
bfinance's 2018 Asset Owner Survey is the firm's largest investor research study to date. It provides invaluable insights into some of the key challenges faced by asset owners around the world. Key themes examined include: entering new asset classes; improving diversification; active, passive and smart beta; ESG in practice…
This paper has been authored by David Iverson and Geoff Warren. It examines the question: What are the characteristics or attributes that are required to enable an investment organization to successfully pursue long-term investment opportunities?
In this paper, the authors unpack the spending policy by breaking it into two components: spending rate and spending methodology. They discuss how these components impact the sustainability of the asset pool and the balance between the interests of current and future beneficiaries.
This paper by the Investment Company Institute details trends in the expenses and fees of investment funds. On average, expense ratios for long-term mutual funds have declined substantially for more than 20 years.
For the fifth successful year, Newton Investment Management has conducted a survey among leaders and decision makers in the UK charity sector. This report covers diverse aspects of the management of charitable portfolios, and provides an industry benchmark to see how aligned managers' investment experience and…
Ten years after the global financial crisis, many industry observers are looking back, assessing what transpired, and wondering what has truly changed in the financial services industry. Lasting damage occurred on many fronts, not the least of which was a serious erosion of trust. But research shows that trust in the finance…
For some time now, socially responsible investing has been a key area of focus for many charities looking to ensure that their investments are aligned with the core aims of their mission. While the results vary significantly by charity type, the majority (62 per cent) of the 93 charities that were surveyed for Newton’s 2017…
We analyze how the rise of institutional investors has transformed the governance landscape. While corporate ownership is now concentrated in the hands of institutional investors that can exercise stewardship of those corporations that would be impossible for dispersed shareholders, the investment managers of these…
Charities continue to face financial challenges at the moment with fundraising under pressure from GDPR changes, and contracts being run on ever tighter margins. Layered on top of this is an increased pensions burden, with additional regulatory scrutiny and pressure to pay off pensions deficits more quickly. We’ve analysed…
Colleges and universities maintain endowments to directly support their activities as institutions of higher education. Endowments are typically investment funds, but may also consist of cash or property. Current tax law benefits endowments and the accumulation of endowment assets. Generally, endowment fund earnings are exempt…
The Common Good Retirement Plan aims to strengthen retirement security of those working in Canada’s nonprofit and charitable sector, primarily through exploring the creation of a nationally portable, high-quality collective retirement plan for the sector. This paper advances the initiative by engaging with nonprofit sector…
This paper provides insights into Meketa Investment Group’s process for setting the appropriate pace of commitments for private market programs. The output of our process is an annual commitment budget designed to approach or maintain our clients’ target allocations to each private market asset class. The commitment pacing…
Higher-equity market valuations have prompted many of our nonprofit clients to inquire about how to protect their organization's assets and related spending streams against potential market downturns. Our investment consultants in Vanguard Institutional Advisory Services® (VIAS™) can help your organization examine its…
