{"id":39561,"date":"2013-12-12T09:38:15","date_gmt":"2013-12-12T14:38:15","guid":{"rendered":"http:\/\/www.hedgeco.net\/news\/?p=39561"},"modified":"2013-12-13T06:43:48","modified_gmt":"2013-12-13T11:43:48","slug":"hedge-fund-research-endowments-and-foundations-in-2014","status":"publish","type":"post","link":"https:\/\/hedgeco.net\/news\/12\/2013\/hedge-fund-research-endowments-and-foundations-in-2014.html","title":{"rendered":"Hedge Fund Research: Endowments and Foundations In 2014"},"content":{"rendered":"

\"research\"<\/a>New York (HedgeCo.Net) – The inaugural NEPC poll\u00a0found that\u00a040% of respondents were planning to raise their allocations to hedge funds and real assets in 2014.<\/p>\n

NEPC, which is a\u00a0consulting firm to\u00a0endowments and foundations, said:\u00a0\u201cGenerally speaking, we found that senior investment professionals at endowments and foundations are feeling reasonably sanguine about the state of the US economy, with 86% noting it\u2019s in a \u2018better or the same place as this time last year,\u2019 and they\u2019re similarly satisfied with their organization\u2019s 2014 financial prognosis\u201d<\/p>\n

\u201cInterestingly, against this backdrop of economic approval and robust market performance, results show endowments and foundations are paring back on their allocations to US equities and fixed income in favor of a range of alternative assets.\u201d\u00a0Cathy Konicki, Partner and Head of NEPC\u2019s Endowment & Foundation Practice Group, said.<\/p>\n

When asked which asset class exposures they plan to change in 2014, respondents overwhelmingly indicated a desire to increase their alternative investments exposure. Specifically, roughly 40% said they plan to raise their allocations to hedge funds and real assets, 32% plan to increase their share of private equity, and 33% will escalate their private debt investments.<\/p>\n

Conversely, 46% of respondents plan to decrease their domestic fixed income exposure, while 28% will cut their domestic equities and 13% plan to reduce emerging market debt exposure.<\/p>\n

When asked about confidence in their organizations\u2019 ability to comfortably meet investment return objectives for FY 2014, 61% of respondents said they\u2019re \u201chighly\u201d or \u201cmoderately\u201d confident. Looking three years out, however, the picture changes dramatically, with 73% of respondents indicating they were \u201cnot confident at all\u201d or \u201csomewhat confident\u201d about meeting return objectives.<\/p>\n

Asked which single event poses the greatest threat to investment performance over the near term, 60% of endowments and foundations noted \u201cslowdown in global growth.\u201d In second place (33%) was \u201cUS budget deficit\/government shutdown,\u201d and in a distant third position (4%), \u201crising interest rates.\u201d<\/p>\n

As it relates to mitigating interest rate risk in their portfolios, 44% of endowments and foundations have \u201creduced fixed income allocations,\u201d 35% added \u201cless constrained mandates,\u201d and 7% added an \u201coverlay strategy.\u201d<\/p>\n

Not surprisingly, 73% of respondents said \u201clower than expected market returns\u201d posed the greatest risk to their investment programs over the long-term, followed by \u201closs of value,\u201d (16%), and \u201cinflation,\u201d (11%).<\/p>\n

This year has been reasonably good from a fund raising standpoint, with 37% saying that giving increased over 2012, and 42% noting that giving is on par with the previous year.<\/p>\n

Investment management fees for respondents appear to be fairly consistent with industry norms, with 33% of endowments and foundations noting that fees range from \u201c.75% – 1.00%,\u201d 29% indicating a range of \u201c.50% to .75%,\u201d and 20% indicating a range of \u201c1.00% to 1.25%.\u201d<\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

New York (HedgeCo.Net) – The inaugural NEPC poll\u00a0found that\u00a040% of respondents were planning to raise their allocations to hedge funds and real assets in 2014. NEPC, which is a\u00a0consulting firm to\u00a0endowments and foundations, said:\u00a0\u201cGenerally speaking, we found that senior investment […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[919,3,16047],"tags":[],"class_list":["post-39561","post","type-post","status-publish","format-standard","hentry","category-hedge-fund-research","category-hedgeco-news","category-insider-trading-2"],"_links":{"self":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/39561","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/comments?post=39561"}],"version-history":[{"count":2,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/39561\/revisions"}],"predecessor-version":[{"id":39563,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/39561\/revisions\/39563"}],"wp:attachment":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/media?parent=39561"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/categories?post=39561"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/tags?post=39561"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}