The Risk, Reward, and Asset Allocation of Nonprofit Endowment Funds

Research

79 Pages

The authors analyze more than 800 U.S. nonprofit endowments to assess their performance, asset allocation, and risk-adjusted outcomes over two decades. The paper finds that while elite university endowments outperform peers through higher allocations to alternatives, most nonprofits fail to earn commensurate returns relative to their investment risk and expenses.

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