Community Foundations Warming To More Risk

Community foundations continue to have more interest in responsive investing and are looking to increase exposure in private investments while decreasing exposure to hedge funds and fixed income, according to a new survey. The FEG 2021 Community Foundation Survey, released on Thursday, received responses from more than 100 U.S. community foundations, which represent more than $30 billion in assets under advisement.

Interest and investment in responsive investing has been increasing since 2017 and for the first time, more than half of survey respondents have responsive investing strategies in their portfolios. Asset classes under consideration have been relatively consistent over the years but 38% are looking to increase exposure to private investments, while decreasing exposure to hedge funds (26%) and global fixed income (19%). Foundations have an average of 18 investment managers in their primary pool, but this varies greatly depending on foundation asset size.

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Source: The NonProfit Times