Foundations and Endowments: How Do They Invest?

The latest insights into Foundations and Endowments…

Although the words “Foundations” and “Endowments” are often used interchangeably, they do not represent the same thing. One is a non-profit organization (Foundations) and the other an investment fund (Endowments). With this distinction in mind, we invite you to explore the insights below, which focus on two parts: the first provides recent developments relevant to how Foundations and Endowments invest, while the second part focuses on the broader dynamics of these two sectors.

ASSET ALLOCATION UPDATES

Secondaries Whitepaper (Camradata)

One of the most significant recent trends in the secondaries market has been the move towards a greater proportion of transactions being GP-led.

Asset Location For Equity (Vanguard)

For compliance reasons, this paper is only accessible in the United States

U.S. equities and international equities differ from each other when it comes to two important characteristics: tax-efficiency and foreign tax withholding.

When the Bough Breaks (Hussman Funds)

The relationship between valuations and subsequent market returns tends to be fairly tight even over horizons on the order of 10-12 years, but it’s not perfect.

Venture Monitor Q3 2023 (Pitchbook/NVCA)

The third quarter of 2023 nearly saw the lowest overall venture deal value in six years and the lowest deal count in roughly three.

Hedge Fund Confidence Index Q3 2023 (AIMA)

The data of the index is based on a sample of 300 hedge funds which participated in an industry poll taken throughout the week ending 29 September 2023.

A Primer on Multi-Strategy Hedge Funds (Colossus)

How can multi-strategy hedge funds fit into the portfolio of institutional investors with a long-term approach?

High Treasury Yields And An Inverted Curve Are Much Ado About Nothing (Qontigo)

Over the past two years, the U.S. has experienced the biggest and fastest increase in interest rates in at least four decades, due to the Fed's policy.

ENDOWMENTS AND FOUNDATIONS UPDATES

The Endowment Model: Key Considerations (UC San Diego)

Successful endowment model investors generally understand the complexity of the approach and have experience and resources to manage them.

Discover The Foundation-Centric Approach To Investment Success (Intech)

For compliance reasons, this paper is only accessible in certain geographies

“Endowments” and “Foundations” are frequently conflated, grouped collectively as E&F. However, it’s crucial to discern their nuanced differences.

Foundation Investment Performance: Doing Good, Investing Well (Charles Skorina)

This report offers a detailed look at the performance of U.S. Foundations, as well as references to how Endowments allocate their capital.

VC & Equity Tech to Define Ivy League Endowment Results for FY 2023 (MPI)

For fiscal year 2023, data suggests that the Ivy League Endowments had an average return of 7.13%, a reversal from the negative return of -2.39% for the group in fiscal year 2022.