In past years, endowment and foundation (E&F) portfolios benefited from strong equity markets, and philanthropic giving more than fully recovered from the fall experienced during the financial crisis in 2008–2009. Signs that the global economy is starting to reflate and a changing political landscape will likely lead to higher volatility, and as such, committees will revisit their investment and risk management strategies and shift further into alternative sources of alpha.
Discuss home country bias vs. global diversification
Assess hedge funds
Focus on benchmarking
Evaluate liquidity requirements and the trade-off in reducing liquidity
Consider private debt assets
Embrace truly active strategies to enhance returns
Analyze whether ESG investing can improve both returns and responsible investment objectives
Evaluate the endowment model
Review the role and importance of gifts to an endowment over the long term
Create a plan now to position your portfolio for political and monetary policy changes.