The Value of Collective Learning - Takeaways from the Commonfund Institute 2023 Investment Stewardship Academy

Oct 15, 2026

Uploaded by Connor

The Value of Collective Learning summarizes insights from the Commonfund Institute’s 2023 Investment Stewardship Academy, held at Yale University with 36 nonprofit leaders. It examines how fiduciaries can steward long-term endowment capital amid pandemic aftereffects, racial reckoning, geopolitical conflict, inflation, and climate-related impacts. The narrative highlights the 2023 economic backdrop, emphasizes resilient practices for boards and committees, and explores asset allocation evidence supporting private assets, alongside governance themes such as purpose-driven leadership and equity-centered decision principles.

LanguageEnglish

CategoryResearch & Report

FormatPDF

Pages9

Reading Time23 min

AccessFree to download

THE ECONOMIC BACKDROP

Key risks and recession signals

ASSET ALLOCATION

Evidence from endowment studies

Private equity: challenges, opportunities, and due diligence

GOVERNANCE

Purpose-driven leadership

The Value of Collective Learning: Takeaways from the Commonfund Institute 2023 Investment Stewardship Academy By Amanda Novello In June 2023, the Commonfund Institute hosted 36 nonprofit leaders on the campus of Yale University for our premier educational event – the Investment Stewardship Academy (ISA). Much has changed since the last convening in 2019 – a global pandemic, a deep racial reckoning, war in Ukraine, inflationary pressures, ongoing and distressing impacts of the climate crisis, and more. At the same time, the need for fiduciaries to shepherd endowment capital into the future to support their institutions has not changed. Throughout the three-day program, external thought leaders gathered with Commonfund experts to present their most insightful thoughts on how to be the most effective stewards of long-term capital. The Value of Collective Learning: Takeaways from the Commonfund Institute 2023 Investment Stewardship Academy Participants spanned 34 institutions, 3 countries, 19 states, in addition to Washington D. C. and the Virgin Islands. The value of diversity of thought and experience was apparent throughout the program. Participants representing different types of institutions, from community foundations to nonprofit hospital systems, higher education, and holding various positions, from CFO to investment committee member to board chairs, raised questions for enlightening discussion to help all in attendance to understand the nonprofit ecosystem and all its complex, interconnected challenges. THE ECONOMIC BACKDROP Across all institutions, one mutual challenge faced is how to grapple with the current economic and investment context. The chart below, taken from the opening session delivered by Commonfund Chief Executive Officer and Chief Investment Officer, Mark Anson, most clearly demonstrates the conundrum facing investors attending this year’s ISA. Last year was an outlier among down years, in that there was no safe haven for capital. Furthermore, banking and geopolitical risks have added to uncertainties in 2023, and some signs, including the ongoing inverted yield curve and the federal reserve’s anticipation of pushing interest rates even higher, are pointing toward a looming recession. This context puts a finer mark on the importance of the following insights, as investment boards and committees continue to persevere and maintain adequate capital and spending to serve their institutions’missions. Among the most important considerations in continued resilience are outlined below: asset allocation, governance, and diversity, equity and inclusion (DEI), all of which were covered in depth throughout the program. ASSET ALLOCATION Being at Yale felt appropriate, as endowment management, especially for higher education endowments, has been led by the “Yale Model” of investment management in which alternative investments are a key driver of intergenerational equity. Data continue to bring the value of this theory to bear as there is a strong correlation between endowment performance and illiquid allocations. Data from the 2022 NACUBO-TIAA Study of Endowments presented at the Investment Stewardship Academy show that institutions with higher allocations to private assets have better returns than those with less, in every return period. For example, 1-year returns The Value of Collective Learning: Takeaways from the Commonfund Institute 2023 Investment Stewardship Academy for those with more than a 20 percent allocation to private investments were-5.7 percent compared with-11.4 percent for those with less than a 20 percent allocation. Looking atthe longer term, the 10-year disparity was 1.5 percentage points (7.9 percent versus 6.4 percent) and the 20-year disparity was 0.9 percentage points (7. 5 percent versus 6.6 percent),1 which amount to sizeable dollar differences. For this reason, ISA 2023 dedicated a meaningful portion of its program to exploring the current state of private equity (PE)

FAQs

What is the main purpose of the Commonfund Institute 2023 Investment Stewardship Academy?

The program brings together nonprofit leaders and Commonfund experts to share insights on how to steward long-term capital effectively for their institutions.

How does the document describe the economic and investment context in 2023?

It notes increased banking and geopolitical risks, an inverted yield curve, and expectations of higher interest rates, framing these as signals of a looming recession that heightens the need for resilient decision-making.

What asset-allocation evidence does the document cite regarding private assets?

It states that institutions with higher allocations to private assets have stronger returns across every return period, including 1-year, 10-year, and 20-year comparisons.

Oct 15, 2026

Uploaded by Connor