Alternatives will play an even more critical role in helping nonprofits reach spending plus inflation targets in 2021 as they seek income and downside protection that low-yielding bonds markets and equity markets cannot.
Nonprofit investors are expecting positive but muted returns from the equity and bond markets in 2021 after their portfolios generated solid performance in a year that upended global financial markets and saw unprecedented volatility.
2020 seemingly moved at a snail’s pace and warp speed all at the same time and as the year of interminable days finally comes to a close, a number of firms in the industry are celebrating the holidays with a different twist than they did in years past – through virtual holiday parties.
There will be a lot of red numbers in upcoming quarterly investment reports for institutional investors. But for managers boasting (relatively) strong returns, how to spread the word at a time that many investors are dealing with not only declining assets but other immediate stresses in the portfolio and the workplace has become a quandary.
Investment consultants are recommending institutions focus on shoring up their immediate needs and maintaining the status quo in the short-term while preparing to be able to capitalize on upcoming investment opportunities the coronavirus pandemic will provide long-term investors.