Despite the rollercoaster ride the global economy took in 2020 investors would, in most cases have been rewarded for doing nothing. After the initial crash, markets eventually moved higher, buoyed by unprecedented fiscal and monetary support, enabling most investor who had been paralyzed by inertia to end the year fairly well compensated.

 

As we make our way through the relatively calmer stages of the pandemic, investors might think the same playbook will reward them again. We think this is unlikely to be the case, and inertia will no longer be their friend.

 

The future is never certain even without the complication of the aftershocks of a pandemic, so it is vital for Not-for-profits (NFP) to assess their current asset allocation and positions. Lightning rarely strikes twice — especially when the weather conditions change — and if inertia helped either protect or even boost portfolios last year, it is unlikely to do so again.

Find out the 5 key challenges we have identified facing NFP investors and how they may look to address them.

 

5 key challenges facing NFP investors:

  1. Inflation finally reawakens
  2. Fixed income no longer a safe haven
  3. Permanently changed real estate landscape
  4. Lower returns and higher volatility
  5. Di“worse”ification

1 Action You Should Take Now

There are certainly challenges ahead, but many potential solutions, too. Now is time to be bold with decisions and plan for a long-term investment portfolio that does not rely on inactivity and good fortune to produce the results you need.

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