What are Foundations Betting On? Following the financial crisis, the US stock market has been on a pretty great 10-year run with only a few hiccups. The S&P 500's annualized return for the decade ending December 31st, 2018 was 13.1%. How have foundations fared over the same time frame? Not nearly as well, the preliminary 10 year estimate from FoundationMark shows a … [Read more...] about Why Haven’t Foundations Done Better in this 10 Year Bull Market?
Compared To What? Before answering this seemingly straightforward question about performance, it might be useful to establish a quick framework to place performance into context. Rather than lead with foundations, we thought a more familiar group, Ivy League endowments, would help illustrate some core concepts. Absolute Performance, Relative Performance, and Peer … [Read more...] about How are Foundations Doing?
The Math is Simple Private foundations have over $900 billion in assets. An incremental 1% return on their investment would yield an additional $9 billion....per year...every year. To put that in perspective, the additional $9 billion would equal the annual charitable support provided by 12 Ford Foundations, 36 Rockefellers, or 45 Carnegies - you get the picture. Better … [Read more...] about 1% Better Returns – Implication for Charitable Giving
New England Leads the Pack Investment performance data provided by FoundationMark. As the chart above and table below show, 4 of the the top 5 performing states in for the year ended December 2017 were in New England - Rhode Island, Maine, Vermont, and Connecticut, with Pennsylvania rounding out the top 5. Foundations in Idaho, Louisiana, and Mississippi had … [Read more...] about Performance by State