FY2023 Ivy Report Card: Volatility Laundering and the Hangover from Private Markets Investing

Research

10 Pages

Fiscal year 2023 proved challenging for Ivy and elite endowments, which underperformed both smaller endowments and global benchmarks. Key findings highlight the role of private market allocations and risk exposure in driving performance dispersion.

This analyzes the 2023 performance for Ivy and elite endowments. They note performance was poor, especially relative to a global 70/30 benchmark and smaller, less resourced endowments that invest in less private markets assets/funds.

Key Takeaways

Underperformance of Ivy Endowments: Ivy and elite endowments returned just +2.1% in FY2023, lagging the global 70/30 benchmark (+11.1%) and smaller endowments (+9%).
Private Markets Diverge: PE and VC returns diverged significantly for the first time since 2003, with PE at +6.1% and VC at -10.2%.
Higher Returns, Higher Risk: Ivy portfolios exceeded 10-year global 70/30 returns (+6.8%) but carried nearly 50% more volatility; top performers like MIT and Brown had modeled volatilities around 20%.
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