The primary policy benchmark for most respondents is a static-weighted blend of indexes where the weightings align exactly or closely with the asset classes and target percentages specified in the asset allocation policy. Perhaps the most consequential benchmarking decision foundations have had to make in recent years is how to represent private equity in the policy benchmark. The majority of respondents use a public index for that representation, and this cohort by and large saw significant underperformance versus their benchmark in 2024. Our Benchmarking section summarizes the various approaches that foundations use for benchmarking total portfolio performance and compares foundation performance versus policy benchmark returns.

The increase in private equity allocations was the key trend in asset allocations over the past decade. Almost every other asset class saw a decline in allocations over the same period when it came the peer group average. The takeaways were similar when looking at recent shifts in asset allocation policies, as a significant portion of the respondent group raised their target allocations to private equity and venture capital (PE/VC) in 2024. The Asset Allocation and Implementation section covers this and other topics related to portfolio implementation, including an analysis that shows that passive investing in US equities has gained more traction in recent years.

The vast majority of participants in this study are private nonoperating foundations. These types of foundations must make qualifying distributions that amount to approximately 5% of their total asset value each year. Consequently, most respondents have spending objectives that are closely tied to this legal requirement. Our Payout from the Long-Term Investment Portfolio section summarizes data pertaining to spending for these types of foundations.

The Foundation Annual Flash Statistics Report provides a first look at the results of our 2024 Foundation Annual Investment Pool Returns survey. Look for our full annual analysis in the Foundation Annual Investment Pool Returns report later this summer.

Our biannual report summarizes asset allocation and total investment performance for 25 of Cambridge Associates’ UK foundation and endowment clients.

Our annual survey-based report summarizes returns, asset allocation, and other investment-related data for 323 endowed institutions for the fiscal year ended June 30, 2024.