{"id":1226,"date":"2019-04-26T17:15:00","date_gmt":"2019-04-26T21:15:00","guid":{"rendered":"https:\/\/www.nepc.com\/private-wealth\/newsroom\/institutional-investor-the-biggest-threat-to-endowment-and-foundation-portfolios\/"},"modified":"2021-11-02T19:09:46","modified_gmt":"2021-11-02T23:09:46","slug":"institutional-investor-the-biggest-threat-to-endowment-and-foundation-portfolios","status":"publish","type":"newsroom","link":"https:\/\/www.nepc.com\/private-wealth\/newsroom\/institutional-investor-the-biggest-threat-to-endowment-and-foundation-portfolios\/","title":{"rendered":"Institutional Investor: The Biggest Threat to Endowment and Foundation Portfolios"},"content":{"rendered":"<div class=\"wpb-content-wrapper\">[vc_row][vc_column width=&#8221;1\/1&#8243;][vc_column_text uncode_shortcode_id=&#8221;117828&#8243;]The biggest threat to endowment and foundation investment portfolios is a slowdown in global growth, according to a survey by consulting firm NEPC.<\/p>\n<p><!--more-->Sixty percent of endowments and foundations probed by NEPC this year said they&#8217;re most concerned about an economic slowdown, up from 21 percent in 2018, the <a href=\"https:\/\/www.businesswire.com\/news\/home\/20190423005597\/en\/Endowments-Foundations%E2%80%99-Economic-Concerns-Triple-2019\" target=\"_blank\" rel=\"noopener\">consultant said<\/a>\u00a0Tuesday. About 50 investors from higher education institutions, private foundations, public charities, and nonprofit healthcare organizations participated in the survey, according to Sam Pollack, principal and senior consultant at NEPC.<\/p>\n<p>Endowments and foundations have been wrestling with what they would do in the event of an economic downturn for some time, he said Tuesday in a phone interview.<\/p>\n<p>&#8220;Economic slowdown and market behavior don&#8217;t necessarily go hand in hand every time, but the concern is that it could lead to a downturn, potentially a significant one,&#8221; Pollack said. To cope, he said that endowments and foundations are allocating more capital to private or illiquid strategies.<\/p>\n<p>Forty-one percent of those surveyed by NEPC anticipate allocating more to private equity, while 51 percent plan to maintain their current exposure. Thirty-one percent of respondents believe that private equity will be the strongest-performing asset class in 2019, up from 15 percent in 2018.<\/p>\n<p>Domestic equities and emerging market equities tied as the next most frequently cited asset classes expected to outperform this year. Twenty-nine percent of those surveyed by NEPC expect domestic equities to outperform, jumping from 6 percent in 2018. The portion of investors favoring emerging market equities as the strongest performing asset class slid this year to 29 percent, from 45 percent last year.<\/p>\n<p>According to Pollack, the results of the survey show the &#8220;mixed emotions&#8221; among managers of endowments and foundations about the performance of global markets this year.<\/p>\n<p>&#8220;Even in the wake of the run-up, there&#8217;s a group that thinks U.S. equities will still be a top performer,&#8221; he said.<\/p>\n<p><a href=\"https:\/\/www.institutionalinvestor.com\/article\/b1f3f8qwsc4bbv\/The-Biggest-Threat-to-Endowment-and-Foundation-Portfolios\" target=\"_blank\" rel=\"noopener\">Read the article on Institutional Investor&#8217;s site here.\u00a0<\/a>[\/vc_column_text][\/vc_column][\/vc_row]\n<\/div>","protected":false},"excerpt":{"rendered":"<p>[vc_row][vc_column width=&#8221;1\/1&#8243;][vc_column_text uncode_shortcode_id=&#8221;117828&#8243;]The biggest threat to endowment and foundation investment portfolios is a slowdown in global growth, according to a [&hellip;]<\/p>\n","protected":false},"author":95,"featured_media":1115,"template":"","meta":{"content-type":"","footnotes":""},"newsroom_categories":[81],"newsroom_tags":[82,83],"class_list":["post-1226","newsroom","type-newsroom","status-publish","has-post-thumbnail","hentry","newsroom_categories-in-the-news","newsroom_tags-press","newsroom_tags-press-coverage"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.9 - 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