Benefits for foundations
There are 3 main benefits to foundations members of Akademia Investments:
Benefit #1: more resources for foundations
Endowments above $500m have consistently outperformed other forms of fund management by over 1% annually on average.1 By pooling resources under Akademia Investments, smaller European foundations are able to access the same benefits of scale, investment expertise, and investment opportunities that larger foundations enjoy. Over 1% extra return per annum generates an additional €30m for a typical €100m endowment over 25 years2 – money that could be spent on fulfilling their missions.
Benefit #2: investment with values
Akademia Investments aims to become a leader at stressing environmental, social, and governance values when investing. It will also help foundations interested in impact investing include it in their portfolios. That way, foundations can make a bigger difference through their investment as well.
Benefit #3: promoting investment best practices for foundations
Promoting better investment and planning is a key goal of the new institution. It does so in a commercial-free environment through advice, forums, and publications. Akademia Investments helps foundations ensure that their investment programs serve their long-term philanthropic goals best.
12014 Nacubo-Common Fund Study of Endowments.
2Assuming 4.5% annual returns and a 4% spending rate