Nonprofit organizations are increasingly eyeing global investments as a way to hedge against the market's current volatility, according to the results of a quick poll released by SEI.
The firm surveyed 86 executives and investment committee members from U.S. nonprofit organizations, whose assets range from $25 million to over $1 billion. The survey found that over 90% of those polled felt that increasing diversification was "the key to controlling current volatility.
Seventy-three percent of those surveyed reported having allocated more assets to non-U.S. investments over the past year. Sixty-two percent reported increases to their allocation to emerging markets equity, 47% reported a spike in their developed international equity investments and 27% increased their allocation to global fixed-income.
Meanwhile, socially responsible investment practices have had an effect on how nonprofits invest globally, with 26% divesting from organizations doing business in Sudan and 24% divesting from organizations doing business in Iran, according to the findings.
Additionally, the survey results also revealed that lack of investing expertise has stalled nonprofits from allocating more to global strategies. Thirteen percent of responding organizations reported lacking the resources to gain "a sufficient understanding of global strategies". Similarly, smaller organizations also had difficulties, as about a quarter of nonprofits with less than $500 million in assets reported wanting to hire a CIO, but not having the financial resources necessary to do so.