Morgan Stanley Survey Finds Shift Toward Portfolio Resilience

Morgan Stanley Institutional Consulting Solutions released its 2026 Endowments and Foundations Survey , showing how nonprofit investment leaders are adjusting portfolio strategy, governance and fundraising plans as they navigate a more complex and uncertain market environment. Key findings among survey respondents include:

• *    Alternatives have become the largest allocation: At 36% of portfolios, alternative investments now exceed U.S. equities as the largest asset class.
• *    Allocation growth is slowing: Fewer respondents indicated plans to raise alternatives exposure, signaling a shift from portfolio buildout to active oversight and optimization.
• *    Portfolio complexity is rising faster than staffing: Most respondents expect investment team size to remain unchanged even as portfolios become more sophisticated.
• *    Consultant relationships are becoming more established: More respondents working with external consultants, and most of those relationships have lasted more than six years.
• *    Portfolio spending is expected to increase: 31% of respondents anticipate higher spending over the next three years to support operations, grantmaking and mission-related needs.
• *    Fundraising expectations remain positive, but cautious: 38% of organizations expect donations to increase in 2026, though market volatility could weigh on giving.

“The survey results indicate that endowments and foundations are entering a new phase of portfolio management, where liquidity, spending discipline and governance are just as important as long-term returns,” said Jeremy France, Head of Institutional Consulting Solutions at Morgan Stanley. “As alternative allocations mature, in our view, the priority is shifting from portfolio construction to resilience—helping institutions meet their obligations while navigating continued uncertainty.”

The survey was conducted for Morgan Stanley Institutional Consulting Solutions by independent research firm 8 Acre Perspective. Results are based on responses from investment decision-makers at 100 endowments and foundations with at least $150 million in assets under management and may not be representative of all endowments and foundations. This material is for informational purposes only and does not constitute investment advice. The complete study can be found here: 2026 Endowments and Foundations Survey .

​Alternative investments often are speculative and include a high degree of risk. Investors could lose all or a substantial amount of their investment. Alternative investments are appropriate only for eligible, long-term investors who are willing to forgo liquidity and put capital at risk for an indefinite period of time. They may be highly illiquid and can emerge in leverage and other speculative practices that may increase the volatility and risk of loss. Alternative investments typically have higher fees than traditional investments. Investors should carefully review and consider potential risks before investing. ​

Source: Morgan Stanley