The following market update provides context for the investment performance of your charitable assets at InFaith Community Foundation.
From Cambridge Associates, InFaith Investment Advisor
The year 2019 provided positive returns for both U.S. and global equities. In fact, nearly all asset classes provided positive returns. Despite this welcomed positive performance, we remain mindful of the range of risks that continue to face investors today. We are in the later phases of the economic and market cycle, valuations are high across many assets, interest rates are near record lows, and geopolitical and macroeconomic risks abound.
In this time of economic, geopolitical and market uncertainty, we continue to believe that InFaith’s diversified approach positions the portfolios to navigate short-term ups and downs in the markets. We remain focused on long-term growth and opportunities. As we progress into the later stages of this economic and market cycle, focusing on risk management and diversification becomes increasingly critical to achieving long-term returns. We also remain committed to seeking best-in-class active managers while maintaining a diversified mix of asset classes and strategies.
With this said, the InFaith Community Foundation Board implemented a number of important investment adjustments in the last quarter of 2019. We believe these changes best position InFaith portfolios for optimal performance and risk control going forward. Changes include:
- A more significant tilt toward U.S. equities within the public equity allocation of the Core Growth and Mission Growth Portfolios. The adjusted public equity allocation is now 65% U.S. equities, 25% non-U.S. equities in developed countries and 10% in emerging market equities. These adjustments reflect current market sentiment as well as strategic positioning for growth in the coming years.
- Adjusted strategic benchmarks that more accurately reflect asset classes within InFaith portfolios. These new indices include the Russell 3000 Index for U.S. equities, MSCI EAFE Index for developed non-U.S. equities and MSCI Emerging Markets Index for emerging markets equities.
InFaith’s dedication to mission responsible investments is evident across all portfolios including 2019 commitments to private equity investments. Recent investments include ReThink Impact, Obvious Ventures, Equal Ventures, BioTrack, and EcoSystem Integrity Fund within Core Growth. We believe that over the long term, this approach to portfolio construction results in stronger risk-adjusted performance and therefore better positions our donors for success in achieving their long-term philanthropic goals.
From InFaith Community Foundation
Historically speaking, market downturns have been temporary and market gains have been stronger and more enduring. With this in mind, InFaith remains committed to a diversified portfolio allocated across asset classes (e.g., different types of stocks and bonds). We believe that an allocation weighted toward stocks offers the best opportunity for maximum sustained support to charities. InFaith continually monitors the performance of its investment portfolios with the assistance of investment advisors Cambridge Associates and Veris Wealth Partners. Investment policies, objectives and guidelines are reviewed on an ongoing basis by staff, Board and our investment advisors. Be assured this is an active and continual process.
For more information, visit InFaith's Financials & Reports page.