NEPC Principal Colin Hatton was quoted in Chief Investment Officer on the drivers behind strong FY2025 university endowment returns, including the impact of public equities, active management, and AI-related exposure. Visit Chief Investment Officer to read the full article and explore the complete analysis.
Higher allocations to public markets and prudent stock selection led those with top-quartile returns in fiscal 2025, according to NEPC.
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“WISIMCO’s investment fund benefited from equity market gains generally and effective stock selection,” wrote Colin Hatton, a principal on the endowments and foundations team at NEPC, in its report. “In the endowment’s recent annual financial report, Michael Stohler, the WISIMCO CIO, noted that strong stock selection within their public equity allocation in particular, as well as in the private markets, did most to enhance results.”
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NEPC’s Hatton wrote that while large equity allocations benefited smaller endowments, investment managers’ returns were dispersed broadly.
“This suggests that active management was a meaningful factor in returns for the top performing funds,” Hatton wrote in the report. “We believe that manager selection will continue to be a driver for the strongest performing endowments going forward. This is particularly true within private markets, where the difference between top and bottom quartile performers is much broader than in public markets.”
Click here to read the full article on the Chief Investment Officer site.