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Bailey McCann, Opalesque New York:

Private and community foundations posted returns of 6.1 percent for the 2014 fiscal year (January 1 – December 31, 2014), down from the 15.6 percent return reported for FY2013, according to the latest Council on Foundations–Commonfund Study of Investment of Endowments for Private and Community Foundations. Report data shows that despite the dip in returns, foundations remain committed to alternatives allocations.

The lower overall return figures reflect a decline in year-over-year investment returns from domestic and international equity-based investments and some alternative strategies. Only fixed income produced notably higher returns in FY2014.

In terms of alternatives allocations, private equity and venture capital proved to be the most consistent source of yield, followed by hedge funds which posted a slight drag due to the dip in commodity strategy performance.

As in FY2013, domestic equities produced the highest return in FY2014, at 10.4 percent for private foundations and 9.8 percent for community foundations. Alternative strategies followed, generating a 4.4 percent return for private foundations and 3.7 percent for community foundations. Fixed income returns averaged 3.8 percent for private foundations and 3.2 percent for community foundations. Short-term securities/cash/other followed, generating an equal return of 0.2 percent for both private foundations an......................

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