Performance and Analysis

Investment Strategy and Performance as of September 30, 2017

Each quarter we update donors of the performance of each of our investment portfolios. 2017 has thus far proven to be a remarkable year which can be characterized by strong gains and virtually no volatility. This joins a long list of surprises over the last decade, including the inconsistency between strong market gains and anemic economic conditions since the Global Financial Crisis. One popular theory is that this is tied to the massive expansion of the Federal Reserve’s balance sheet since 2008, the goal of which was to stabilize markets.

Nine years later, forecasts of market doom have been wrong but we will soon be entering an interesting inflection point as the Federal Reserve now seeks to reduce the size of its balance sheet by reducing its bond purchases.  In theory, this should lead to higher interest rates as one source of demand, along with its impact on other investors, will dissipate.  However, markets do not necessarily behave according to any particular playbook or set of logic.

Endowment – Ending 9/30/17 Net of fees

Returns continue to be quite strong for the Endowment. This is the product of a well-diversified mix of talented investors and index funds. The custom benchmark and the portfolio reflect a more fully diversified pool than the 80/20 benchmark, which has contributed to less volatility and consistently higher returns over time compared with the 80/20 benchmark and the Median Community Foundation.

Long Term Donor Advised – 9/30/17 Net of fees

Returns continue to be quite strong for the Long Term Advised Fund. This is the product of a well-diversified mix of talented investors and index funds. The custom benchmark and the portfolio reflect a more fully diversified pool than the 80/20 benchmark, which has contributed to less volatility and consistently higher returns over time compared with the 80/20 benchmark and the Median Community Foundation.

Socially Responsible Investments 

Our Socially Responsible Investments (SRI) Portfolio is externally managed by PAX World Investments. It offers full Environmental, Social and Governance (ESG) integration. Please find their quarterly performance review here:

PAX Balanced Fund (PDF)