Endowments, foundations still investing in bonds

By Staff | June 15, 2015 | Last updated on June 15, 2015
1 min read

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.


Should you judge a bond by its label?

Clients should consider bond ETFs, say experts

How negative rates affect economies

Advisor.ca staff


The staff of Advisor.ca have been covering news for financial advisors since 1998.