Investment strategies for endowments and foundations
Why endowments and foundations should reassess investment strategies
Add bookmark
Endowments and foundations face a dual mandate: preserving and growing capital over the long term while meeting short-term liquidity needs to fund operations, grants or distributions. This is increasingly challenging in today’s complex investment environment. Most endowments and foundations are meant to last into perpetuity, requiring investment strategies that preserve and grow capital over the long term.
The long-term time horizon of endowments and foundations allows them the opportunity to take on more risk in their asset allocations than other institutional investment portfolios, but they cannot afford to completely ignore market volatility. Striking a balance between the dual mandate may be difficult at times, especially in a volatile environment.
Navigating market volatility, potential regulatory risk and geopolitical risks require endowments and foundations to not only manage their portfolios to meet long-term objectives but also to understand how potential changes/risks may impact their investment strategy. This whitepaper provides a guide for the C-suite and boards on balancing liquidity and growth.
Key takeaways:
- Asset allocation – balancing long-term return and short-term liquidity.
- Proper risk management and governance.
- Reviewing and analyzing your investment strategy.
