As New Zealand not-for-profits face increasing funding and market pressures, find out how their investments are working smarter, more sustainably, and harder, to achieve their purpose.
The results of this survey – the release of which has been impacted by the Covid-19 outbreak - provide insights and key trends on important issues impacting investment portfolios within the Endowments and Foundations (E&F) sector.
This survey closes what has been an extraordinary decade in which ‘unprecedented’ can be applied to events, climate, geopolitics and indeed, the global economy. We have seen central banks move monetary policy beyond conventional cash rate settings and engage in ‘non-conventional’ policy approaches such as quantitative easing, negative interest rates and ongoing ‘forward guidance’ in order to suppress rates over all time periods and ensure sufficient liquidity remained within the financial system.
The extraordinary global economic events have coincided with extraordinary returns from capital markets. The non-conventional approaches to monetary policy have been a key contributor to the strong returns from both equity and bond markets. This has led to many E&Fs experiencing high single-digit returns (per annum) over the past decade. But what does the future look like?
We surveyed over 25 New Zealand E&Fs, and here’s some of the things they told us:
Nominate market volatility as their biggest risk
Indicated that their current spending rate is over 4% of investment returns
Have lowered their return objective in the past 12 months
Rate ESG as important when reviewing or appointing external managers