Some 33% of educational endowments and foundations in 2004 expect to increase investments to alternative asset classes, which includes real estate, according to a survey by the Commonfund Institute.
In 2003, 33% of endowment and foundations assets were invested in alternative investments, 32% to domestic equities, 19% to fixed income and 14% to international equities. Cash and short-term holdings remained at 2%. Half of the domestic equity allocations were in large-cap portfolios, while 81% of the fixed income was in domestic bonds. Active EAFE assignments made up 67% of international equities, and 45% of the alternatives were in hedge funds.