Commonfund's Keating Says Endowments Have Been Challenging

The video discusses the financial performance of endowments, highlighting a strong fiscal year 2017 with 12% gains, following a challenging decade with average returns of 4.6%. It emphasizes the need for long-term investment strategies to achieve necessary returns, particularly through a bias towards equities and alternative investments. The video also explores the breakdown of investments by asset class and the importance of achieving returns that outpace inflation.

What was the average annual return for endowments over the past decade?

• 7.9%

• 12%

• 4.6%

• 5%

Which type of investment strategy is more prevalent in larger funds compared to smaller ones?

• Real estate

• Alternative strategies

• Public equities

• Bonds

What is the primary reason for having a bias towards equities in investment portfolios?

• Equities are less risky than bonds

• Equities provide immediate liquidity

• Equities have historically outperformed bonds

• Equities are easier to manage

How much more have stocks earned on average compared to bonds over the last 30 years?

• 2% more

• 3% more

• 5% more

• 4% more

What is the illiquidity premium associated with private equity investments?

• 4-5% more than public stocks

• 2-3% more than public stocks

• 3-4% more than public stocks

• 1-2% more than public stocks