The E&F Advocate: Key Takeaways on Proposed Endowment Tax Changes
photo credit: ideogram.ai The proposed endowment tax changes aim to increase the current 1.4% excise tax on net investment income of certain private colleges and universities to rates as high as 21% or more. Additionally, there are proposals to broaden the tax’s applicability by lowering the endowment assets per student threshold from $500,000 to…
Read MoreMarch 2025
Summary U.S. stocks tumbled in March, finishing off a rocky first quarter of 2025. Tariff talk continued to dominate the headlines as measures targeting steel, lumber, and the auto industry were met with countermeasures from Canada, the Eurozone, and Asia. Domestic bonds provided some diversification but still only managed to end the month flat. Inflation…
Read MoreA Perspective on 2025 Tariffs
Photo credit: unsplash Why Tariffs to Restore Trade Balances Won’t Always Lead to a 1:1 Price Increase for Consumers, and Shouldn’t Throw Your Strategies Off Balance There’s a widespread assumption that tariffs—taxes on imported goods – automatically result in a direct, 1:1 price increase for consumers, meaning a 25% tariff would raise prices by 25%…
Read MoreThe E&F Advocate: A New Series from Highland Consulting Associates
In an ever-changing financial landscape, endowments and foundations (E&F) face numerous challenges and opportunities that require informed decision-making and strategic planning. As these organizations navigate complex issues surrounding governance, investment strategies, policy shifts, and tax implications, it’s crucial to stay ahead of emerging trends and evolving best practices. For this reason, we’re excited to launch…
Read MoreThe E&F Advocate: Five Pillars of Endowment Governance to Support Greater Liquidity, Transparency and Returns
Photo credit: Dreamstime The “Yale Model” of endowment investment strategy created by David Swenson, successful for decades, may be nearing retirement. What was developed during a time of falling interest rates, less asset class ubiquity, and diminished premiums for exotics, may be a far less tenable model in 2025. Models like Yale’s with their reliance…
Read MoreFebruary 2025
Summary Markets were mixed in February, as U.S. investors shunned equities for the safety of bonds. Outside of the U.S., markets shrugged off the uncertainty surrounding potential U.S. tariffs to generate modest gains. January CPI came in slightly above expectations, and geopolitics moved to the forefront again with questions on U.S. policy shifts in Ukraine…
Read MoreJanuary 2025
Summary Markets started 2025 on solid footing with major asset classes posting positive returns in January. Global equity markets moved higher and interest rate volatility was muted during the month. While markets closed January with an eye toward the impact of evolving trade policies related to President Trump’s tariff threats. Earlier gains prevailed against any…
Read MoreMake Your Own Luck: Navigating Pension Risks in a World of Terminations
Photo credit: Dreamstime The legal drama “Suits” follows the lives of ambitious lawyers at a prestigious New York City firm. If you’ve not seen it, at the heart of the series is Harvey Specter, a successful senior partner known for his arrogance and ruthless ambition. A master in the courtroom, Harvey outmaneuvers opponents with his…
Read MoreMore with Meaning: Aligning Your Life and Wealth
photo credit: Dreamstime As we turn the page to a new year, it’s natural to feel a mix of excitement, anticipation, and perhaps a bit of uncertainty. Are you looking forward to growth in your personal life, your relationships, or in the world around you? Or do you approach the future with caution, even concern,…
Read MoreDecember 2024
Summary Markets stumbled across the finish line to end 2024. Interest rates rose and stocks tumbled in December. The yield curve continued to steepen, and non-U.S. stocks held up better than domestic equities for the month. Traders shifted to more of a risk-off posture following some less-than-dovish commentary from the Federal Reserve Board early in…
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