Endowments and foundations (E&Fs) across Canada are facing investment obstacles, finds a new survey by Morneau Shepell.

They say the standard 60/40 split between equity and fixed income remains their predominant investment strategy, but some are adopting more progressive approaches.

“Some E&Fs are rethink[ing] their traditional modes of investment because of low returns expected for bonds and higher volatility expected for stocks,” says Rob Boston, partner with Morneau Shepell Asset & Risk Management.


So, while 75% intend to maintain their allocation to Canadian bonds and long bonds, only about 60% will continue to choose Canadian corporate bonds.

Read: Why you should choose corporate bonds

To date, says the survey, more than 50% of E&Fs see their biggest future challenge as earning sufficient funds to meet objectives.

That’s because “E&Fs need to maintain target spending and preserve the value of [their] fund[s], while at the same time operat[ing] in an unpredictable financial environment,” adds Mel Bartlett, managing partner of Morneau Shepell’s Atlantic Retirement Consulting practice.


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