SEI Reports on Nonprofit Response to Investment Challenges
SEI reports that a recent poll shows a continued commitment to alternative investments by nonprofit organizations, including educational institutions, hospitals, private foundations, and community foundations. Conducted in December, 2009, the poll looked into the current investment management practices of nonprofit organizations, the challenges these organizations are facing, and how these organizations are prioritizing and addressing these concerns for 2010.
The poll states that only six percent of the nonprofit organizations that responded plan to decrease their overall allocation to alternative assets, such as hedge, private equity, real estate, venture capital, and other privately offered funds.
Despite this statistic, the poll is not all good news for the private funds industry. The poll also shows that a significant percentage of its respondents will be addressing liquidity concerns by aligning portions of their portfolio with spending requirements (49%), developing a formal liquidity policy (36%), shifting assets into short-term fixed income (35%), decreasing liquidity and lock-up tolerance for alternatives (29%), and attempting to negotiate shorter lock-up periods (28%).
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