RT Journal Article
SR Electronic
T1 richard ennis’s insights
Are Endowment Managers Better Than the Rest?
JF The Journal of Investing
FD Institutional Investor Journals
SP joi.2022.1.232
DO 10.3905/joi.2022.1.232
A1 Richard M. Ennis
YR 2022
UL https://pm-research.com/content/early/2022/07/26/joi.2022.1.232.abstract
AB I compare five aspects of investing large educational endowments and public employee pension funds: operating environment and culture, institutional characteristics, expense ratio, risk habitat, and risk-adjusted performance. The most significant measurable differences between the two types of investing institutions are: 1) the amount they spend on investment management and 2) the degree of risk they take. In terms of risk-adjusted performance, endowments have underperformed public funds by a small margin for the 13 years ending June 30, 2021. There is no evidence that endowment managers have an edge over public fund managers of a type or magnitude that might translate to a performance advantage.