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Endowments and pensions continue to post gains, but exposure to private markets pushes many below benchmarks

MPI Transparency Lab Analyst Commentary

MPI Transparency Lab Analyst Commentary

About eight years ago, Columbia University’s endowment had a 10-year return that was one of the best in class, together with MIT and Yale.

Most endowments have been propped up by a similar concentration in private assets. The ones that suffered the worst, however, couldn’t have been more different in their approach.

Yale’s been cutting private equity and real estate for years to stay liquid. Did they cut too much, or did they find the right balance for FY2022?

MPI is continuing its long tradition of bringing you special insights into the true drivers of endowment performance and risk. Stay tuned for the launch of our new Endowments research hub, and exciting daily updates throughout the FY2022 reporting season.

Risk parity strategies can look very different from each other in implementation.  They may have different risk budgets, risk targets, asset class buckets or even different definitions of risk. In this particular period, however, the disparity in performance is staggering.

Eight years ago, we partnered with Eurekahedge to develop a unique hedge fund benchmark. We review live performance of the index and its liquid tracker – MPI Eurekahedge 50 Tracker Index.

We embarked on a project to estimate 2022 FY performance for Ivies and major US university endowments… weeks before official reports become available.