During this 30-minute conference call, The San Diego Foundation Investment Chair Steve Klosterman, AIF and Chief Investment Officer Matt Fettig, CFA discussed 2018 Q2 trends, returns and asset allocation for The Foundation's Endowment Portfolio and Long-Term, Medium-Term and Short-Term Non-Endowment Portfolios.
The discussion concludes with a Q&A from webinar attendees. For more information, visit SDFoundation.org/investments.
You can watch the recording of the webinar here: https://www.youtube.com/watch?v=wzYzPbOqY40
2. Speakers
Steve Klosterman
Regional Director, Halbert Hargrove
Chair, Investment Committee
The San Diego Foundation
Matt Fettig, CFA
Vice President, Chief Investment Officer
The San Diego Foundation
Brian Zumbano
Vice President,
Development & Stewardship
The San Diego Foundation
3. Agenda
1. Macroeconomic update
2. Performance & attribution for Endowment Portfolio
3. Performance & attribution for Long-Term Portfolio
4. Performance & attribution for Medium-Term Portfolio
5. Performance & attribution for Short-Term Portfolio
6. Q&A
6. The Fed and Interest Rates
Source: Bloomberg, FactSet, Federal Reserve, J.P. Morgan Asset Management.Market expectations are the federal funds rates priced into the fed futures market as of the date of the June
2018 FOMC meeting. Guide to the Markets –U.S.Data are as of June 30, 2018.
Source: FactSet, Bloomberg, Standard & Poor’s. All calculations are cumulative total return, including dividends reinvested for the stated period. U.S. Data are as of December 31, 2017.
7. Interest Rates and Equities
Source: FactSet, FRB, Standard & Poor’s, J.P. Morgan Asset Management.Returns are based on price index only and do not include dividends. Markers represent monthly 2-year
correlations only.Guide to the Markets –U.S.Data are as of June 30, 2018.
8. Intra-Year Declines are Normal
Source: FactSet, Standard & Poor’s, J.P. Morgan Asset Management.Returns are based on price index only and do not include dividends. Intra-year drops refers to the largest market
drops from a peak to a trough during the year. For illustrative purposes only. Returns shown are calendar year returns from 1980 to 2017, over which time period the average annual return
was 8.8%.
Guide to the Markets –U.S.Data are as of June 30, 2018.
9. Performance & attribution for Endowment Portfolio
Asset Allocation
$563.5 million as of September 30, 2018
Includes Principal Only
Returns*
For period ending September 30, 2018
*The Foundation's Policy Index is a composite of indexes reflecting our diversified portfolio, specifically: 49% MSCI ACWI IMI (net), 17% BBgBarc US Universal Bond Index, 9.1% NCREIF ODCE, 15% HFRI FOF Index, 6% Cambridge Assoc.
U.S. Private Equity Index lagged 1 Quarter, 3.9% Bloomberg Commodity Index.
Returns are reported net of investment manager fees, gross of TSDF fees.
10. Performance & attribution for Long-Term Portfolio
Asset Allocation
$89.1 million as of September 30, 2018
Includes Principal Only
Returns*
For period ending September 30, 2018
The Foundation's Policy Index for Long Term Pool is 50% MSCI ACWI IMI (net), 20% BBgBarc US Universal Bond Index, 20% HFRI FOF Index, 5.5% FTSE NAREIT, 4.5% Bloomberg Commodity Index. Fixed Income Index: 100% BBgBarc
US Universal Bond Index.
Returns are reported net of investment manager fees, gross of TSDF fees.
11. Performance & attribution for Medium-Term Portfolio
Asset Allocation
$56.3 million as of September 30, 2018
Includes Principal Only
Returns*
For period ending September 30, 2018
*The Foundation's Policy Index for Medium Term Portfolio is 30% MSCI ACWI IMI (net), 45% BBgBarc US Universal Bond Index, 20% BofA ML 1-3 Yr Treasury, 5% 91-Day T-Bills.
Returns are reported net of investment manager fees, gross of TSDF fees.
12. Performance & attribution for Short-Term Portfolio
Asset Allocation
$21.8 million as of September 30, 2018
Returns*
For period ending September 30, 2018
Returns are reported net of investment manager fees, gross of TSDF fees.