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SEI and Association of Governing Boards of Universities and Colleges Unveil New Data on Foundation Investment Landscape
Joint Study Addresses Investment and Operational Priorities, Policies, and Governance OAKS, Pa., March 3, 2022 /PRNewswire/ -- SEI® (NASDAQ:SEIC) and the
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[{"type":"text","content":"Joint Study Addresses Investment and Operational Priorities, Policies, and Governance\n\n\nOAKS, Pa., March 3, 2022 /PRNewswire/ -- SEI® (NASDAQ:SEIC) and the Association of Governing Boards of Universities and Colleges (AGB) today introduced new research providing insight into the college- and university-affiliated foundation operational and investment landscape.\nThe study, which was unveiled at AGB's Foundation Leadership Forum, found that nearly half of foundations anticipate a better rate of investment return in 2022. Additional key findings include:\nOperations\nOne-in-two (51%) foundations with $100m or less in assets have an approximate annual operating budget (excluding gifts/grants/endowment spent by institution) of $1 million or less. Over half (57%) of foundations noted that they manage \"real estate acquisition, development and/ or management,\" while just over half (51%) also are responsible for alumni relations. Foundations unanimously (100%) listed an endowment / administrative management fee as a revenue source for their annual operating budget, and six-in-ten (60%) included \"gift fees\" as well.2022 investment outlook\nNearly four-in-ten (38%) foundations expect inflation to increase by over 2% in 2022. Almost two thirds (64%) of foundations have an investment return objective between 7.0% and 8.25% in 2022, though roughly a third (27%) set their investment return objective below 7.0%. Asset allocation \nNearly a third (32%) of foundations said they plan to increase their use of alternatives this year, with private equity, private real estate, and venture capital being the most popular alternative asset classes. Only one-in-three foundations (34%) said they either invested in sustainable strategies last year or plan to do so in 2022. Sustainable investing integration (65%) was the most popular sustainable approach, significantly outpacing impact investing (14%), as well as positive and negative screening (14% and 7% respectively). Domestic equity and private equity were the primary asset classes in which sustainable investing approaches were implemented. Two-in-five (41%) foundations have experienced some level of pressure from students to increase sustainable investing consideration.Investment management provider\nMore than half of foundations (54%) utilize an outsourced chief investment officer (OCIO) partne...