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What’s on the minds of not-for-profit investors in what could be one of the most challenging market environments for many years? That’s exactly what our Global Not-for-Profit Investment Survey set out to determine, and you can now analyse its findings in the report. We canvassed the opinions and intentions of not-for-profit investors from around the world on a range of subjects, including their confidence in meeting their investment objectives, investing in private markets, sustainability and the need to outsource some of their responsibilities to external experts. As well as reporting on the results, we set out a range of possible action points for not for profits looking to maximise their chances of achieving their various aims. 

What investors are telling us

59%

59% of survey participants say low expected future returns are their number one challenge over the next three years

65%

65% of respondents see diversifying away from traditional asset classes as their greatest opportunity over the next three years.

55%

55% of survey participants say they're using external expertise to help navigate this complexity.

39%

39% of survey participants believe meeting their ESG investing goals means compromising on returns.

Actions investors can take

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  • Macro concerns reflected in the sentiment of the sector

    Low expected future returns (59%) and inflation (50%) identified as the top 2 investment challenges for not for profits over the next 3 years.

     

    Action points

    • Review how the assets in your portfolio are likely to perform in a period of sustained high inflation. Which asset classes offer protection against inflation?
    • Consider assets likely to perform well in an environment of rising rates as central banks act to counter inflation

     

    Find out more

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  • Private markets – The big migration

    65% of respondents see diversifying away from traditional asset classes as their greatest opportunity over the next three years.

     

    Action points

    • Decide what you’re trying to achieve and what you need your allocation to private markets to do for your portfolio
    • Use experts to identify asset classes, develop a clear commitment plan and ensure appropriate sizing 

     

    Find out more

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  • Outsourcing – Navigating the future with the right support

    44% of respondents say their portfolios are more complex today than they were three years ago.

     

    Action points

    • Consider additional governance models (outsourcing, extension of staff etc) to ensure effective sourcing, assessment and execution which complement in-house skills
    • Regularly review your provider to ensure that they best placed to  meet your changing needs

     

    Find out more

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  • Sustainability – Closing the gap between ethics and investment returns

    72% of respondents state an intention to increase or significantly increase their exposure to ESG-focused investments over the next 12 months. However 39% believe they have to make compromises on their investment objectives, and, of that group 57% believe they will have to compromise on absolute return. 

     

    Action points

    • Develop a clear policy for all of your organisation’s stakeholders covering responsible investing that covers issues such as mission alignment; diversity, equity & inclusion; and climate risk
    • If you want to make a positive impact, move beyond exclusions toward thematic or impact strategies with measurable stewardship and engagement outcomes

     

    Find out more

 

 

 

 

 

 

Findings from the 2022 Global Not-for-Profit Investment Survey 

Download the report

Podcasts

Hedge funds: the comeback kid?

The level of portfolio protection from high-quality debt instruments that generations of investors have relied on is no longer there. Investors need more tools in the toolkit. Gold and some currencies can protect well, but are subject to idiosyncratic risks and are noncontractual; their protective capacities

Making waves: A spotlight on water scarcity

In this episode dedicated to Earth Day, Mark Longbottom is joined by Helga Birgden and John Elmore-Jones to discuss their latest research into the importance of water, as a critical resource, when considering investments.

Private markets and the $1tn data question

Many investors lack significant experience of the private markets space and, therefore, require some understanding of how it fits into their portfolios.

More Insights



Private markets for endowments and foundations 


Top financial considerations in 2022

 


What should endowment investors be doing about inflation

 

 

Meet our specialists

Paul Fleming

Paul Fleming

Head of Not for Profit, Investment Solutions, UK

Cameron Taylor

Rebekah Dunn

Head of Endowments and Foundations, Pacific

Gilles Lavoie

Gilles Lavoie

Not for Profit investment consultant, Canada

Yaser Z. AbuShaban

Yaser Z. AbuShaban

Principal Consultant and Senior Investment Advisor

Texas Hemmaplardh

Texas Hemmaplardh

Co-Head of US Endowments, Pavilion, a Mercer practice

Amit Popat

Amit Popat

Head of Not for Profit, Europe and IMETA

Texas Hemmaplardh

Janet Li

Head of Wealth, Asia

Mercer Ireland

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