In light of COVID-19, NEPC, LLC conducted a flash poll of Endowments and Foundations to examine how these organizations are shifting their strategies amid the pandemic.
The results show:
The majority (55%) of endowments and foundations expect a severe recession similar to that of 2008. Forty-one percent of total respondents are more optimistic and expect a short, sharp COVID-19-driven recession followed by a strong recovery.
The majority (61%) of organizations are rebalancing their portfolios in response to recent market moves, with 14% working to raise additional cash and 13% reducing their overall risk exposure. Only seven percent of all respondents indicated they are taking no action at all.
The majority (61%) of respondents are also taking immediate action to reduce their costs, expenses, and spending rate to protect the corpus.Education foundations, in particular, are working to reduce their costs and expenses. Fifty-seven percent of these respondents indicated they are currently reducing their costs, most likely in an effort to reposition themselves for a more volatile future. This compares to the 11% of organizations that are increasing their spending rate to further support ongoing operations.
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