NEPC’s annual Healthcare Operating Funds Survey examines how healthcare operating pools are invested. The online survey was conducted during April and May 2021 and had participation from 81 healthcare funds, representing 75 organizations, with AUM ranging from under $250 million to over $2 billion.
The results show:
A 2020 NEPC survey showed 61% of healthcare organizations furloughed staff and 43% suspended or postponed retirement plan contributions, or planned to do so. This year’s survey revealed that the majority have reversed these measures, with only 9% keeping them in place. This points to the overall health of the industry.
Changing interest rates was cited as the greatest threat to near-term performance, with 63% of respondents expecting higher rates by year-end.
Healthcare systems appear optimistic. Following 2020’s robust market returns, 76% believe the S&P 500 will deliver returns of 6% or more this year. Respondents are also bullish on private markets with 46% planning to increase allocations, whereas only 3% are planning to decrease allocations.
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