Funders focus on rebuilding assets

January 11, 2010

In the wake of a year that saw foundation assets tumble 24 percent, a majority of endowments and funders will focus on rebuilding their assets in the coming months, a new study says.

Almost two in three endowments and foundations say rebuilding will be a priority over the next 18 months, says the survey of chief investment officers conducted by Spectrem Group.

Alternative investments, including hedge funds and venture capital, will be a focal point for 36 percent of small endowments, defined as those with assets of $25 million to $49 million, and for 29 percent of funders with assets of more than $200 million.

Liquidity also will be a focus for 41 percent of large funders, the report says, while smaller foundations are not concerned with liquidity.

"The recession has severely impacted endowments and charitable foundations, erasing a considerable portion of their assets and putting pressure on their ability to fulfill their missions," Gerald O'Connor, a director for Spectrem, says in a statement.

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