Key Takeaways from Forum 2025

March 21, 2025 |
2 minute read
|
Key Takeaways from Forum 2025
3:15

 

Commonfund Forum 2025, held in Orlando, brought together registrants from some 370 institutions with more than $800 billion in endowed assets representing 42 states and five foreign countries in a 2.5-day conference. The event, themed “Leading with Courage & Purpose,” featured a multifaceted agenda. Sessions explored the global economy, the geopolitical and regulatory environment, and investment trends and strategies to help institutions support their missions. Nearly 50 experts from investment firms, academia, business, public policy think tanks and major media outlets convened in general sessions, keynote addresses and breakout sessions.

Here are the key takeaways to emerge from the wide-ranging agenda:

Approach decisions with an economic lens, not a political lens. Although much of what's roiling the financial markets has political underpinnings, investors should focus primarily on the economic ramifications of factors such as trade wars, inflation, deregulation, employment and consumer confidence. Be sure to discuss the potential implications of various economic scenarios on your strategic policies and asset allocation with your Investment Committee and financial advisors so that you remain best positioned for success.

Pay extra attention to liquidity. There are many proposals in circulation with the potential to impact nonprofits both directly and indirectly. As they are constantly evolving it may take time to get a clearer overall picture. But questions surrounding tax policy, government funding and potential litigation may warrant increased spending. In this environment, institutions should be careful to maintain adequate levels of liquidity and monitor funding needs that are critical to your institution’s mission.

In an uncertain environment, hedge funds warrant greater attention. Heightened geopolitical and regulatory risks are leading to higher volatility, an environment that is favorable for both the greater diversification and defensive positioning offered by hedge strategies.

The liquidity risk premium is still intact. Asset allocation alone will not get you to CPI plus 5 percent (the necessary return to support annual spending plus real growth after inflation). You need illiquid (private) investments. Today the illiquidity premium over the public markets (S&P 500) stands at 3.6 percent—exactly on its long-term average.1 And be certain to diversify within your private market exposure, as real estate, private credit, real assets and infrastructure all have roles to play. In fact, a plurality of Forum attendees expects private equity, private credit, and venture capital to be the top performing asset classes over the next 12 months.2

Be a courageous leader for your organization. In turbulent times, your organization, co-workers and constituents will look to leadership to set the tone and define successful strategies. Stay true to your mission and let it be a source of clear purpose for all involved.

 

  1. Source: Commonfund Research
  2. Commonfund Forum 2025 survey of attendees. Based on 203 responses.
Commonfund

Author

Commonfund

Disclaimer

Certain information contained herein has been obtained from or is based on third-party sources and, although believed to be reliable, has not been independently verified. Such information is as of the date indicated, if indicated, may not be complete, is subject to change and has not necessarily been updated. No representation or warranty, express or implied, is or will be given by The Common Fund for Nonprofit Organizations, any of its affiliates or any of its or their affiliates, trustees, directors, officers, employees or advisers (collectively referred to herein as “Commonfund”) or any other person as to the accuracy or completeness of the information in any third-party materials. Accordingly, Commonfund shall not be liable for any direct, indirect or consequential loss or damage suffered by any person as a result of relying on any statement in, or omission from, such third-party materials, and any such liability is expressly disclaimed.

All rights to the trademarks, copyrights, logos and other intellectual property listed herein belong to their respective owners and the use of such logos hereof does not imply an affiliation with, or endorsement by, the owners of such trademarks, copyrights, logos and other intellectual property.

To the extent views presented forecast market activity, they may be based on many factors in addition to those explicitly stated herein. Forecasts of experts inevitably differ. Views attributed to third-parties are presented to demonstrate the existence of points of view, not as a basis for recommendations or as investment advice. Market and investment views of third-parties presented herein do not necessarily reflect the views of Commonfund, any manager retained by Commonfund to manage any investments for Commonfund (each, a “Manager”) or any fund managed by any Commonfund entity (each, a “Fund”). Accordingly, the views presented herein may not be relied upon as an indication of trading intent on behalf of Commonfund, any Manager or any Fund.

Statements concerning Commonfund’s views of possible future outcomes in any investment asset class or market, or of possible future economic developments, are not intended, and should not be construed, as forecasts or predictions of the future investment performance of any Fund. Such statements are also not intended as recommendations by any Commonfund entity or any Commonfund employee to the recipient of the presentation. It is Commonfund’s policy that investment recommendations to its clients must be based on the investment objectives and risk tolerances of each individual client. All market outlook and similar statements are based upon information reasonably available as of the date of this presentation (unless an earlier date is stated with regard to particular information), and reasonably believed to be accurate by Commonfund. Commonfund disclaims any responsibility to provide the recipient of this presentation with updated or corrected information or statements. Past performance is not indicative of future results. For more information please refer to Important Disclosures.

Stay connected with the Insights Blog

Popular Blog Posts


Market Commentary | Insights Blog

Chart of the Month | U.S. Budget Deficit Hits Record Highs

In his first 100 days as President of the United States, Joe Biden has introduced three domestic funding proposals, totaling close to $6.0 Trillion, reflecting a desire to enhance the role of the...
Governance And Policy | Insights Blog

A Closer Look at Historically Black Colleges and Universities

Earlier this year, in partnership with the National Association of College and University Business Officers (NACUBO), Commonfund released the 2024 NACUBO-Commonfund Study of Endowments (NCSE). The...
Investment Strategy | Insights Blog

Key Factors in Asset Allocation Decisions for Endowments

There are several broad subjects that an effective investment policy statement (IPS) should include in its contents and address clearly and specifically as they relate to an endowed institution. This...

Disclaimer

Certain information contained herein has been obtained from or is based on third-party sources and, although believed to be reliable, has not been independently verified. Such information is as of the date indicated, if indicated, may not be complete, is subject to change and has not necessarily been updated. No representation or warranty, express or implied, is or will be given by The Common Fund for Nonprofit Organizations, any of its affiliates or any of its or their affiliates, trustees, directors, officers, employees or advisers (collectively referred to herein as “Commonfund”) or any other person as to the accuracy or completeness of the information in any third-party materials. Accordingly, Commonfund shall not be liable for any direct, indirect or consequential loss or damage suffered by any person as a result of relying on any statement in, or omission from, such third-party materials, and any such liability is expressly disclaimed.

All rights to the trademarks, copyrights, logos and other intellectual property listed herein belong to their respective owners and the use of such logos hereof does not imply an affiliation with, or endorsement by, the owners of such trademarks, copyrights, logos and other intellectual property.

To the extent views presented forecast market activity, they may be based on many factors in addition to those explicitly stated herein. Forecasts of experts inevitably differ. Views attributed to third-parties are presented to demonstrate the existence of points of view, not as a basis for recommendations or as investment advice. Market and investment views of third-parties presented herein do not necessarily reflect the views of Commonfund, any manager retained by Commonfund to manage any investments for Commonfund (each, a “Manager”) or any fund managed by any Commonfund entity (each, a “Fund”). Accordingly, the views presented herein may not be relied upon as an indication of trading intent on behalf of Commonfund, any Manager or any Fund.

Statements concerning Commonfund’s views of possible future outcomes in any investment asset class or market, or of possible future economic developments, are not intended, and should not be construed, as forecasts or predictions of the future investment performance of any Fund. Such statements are also not intended as recommendations by any Commonfund entity or any Commonfund employee to the recipient of the presentation. It is Commonfund’s policy that investment recommendations to its clients must be based on the investment objectives and risk tolerances of each individual client. All market outlook and similar statements are based upon information reasonably available as of the date of this presentation (unless an earlier date is stated with regard to particular information), and reasonably believed to be accurate by Commonfund. Commonfund disclaims any responsibility to provide the recipient of this presentation with updated or corrected information or statements. Past performance is not indicative of future results. For more information please refer to Important Disclosures.