April 2020

THE FOUNDATION IS HERE FOR OUR COMMUNITY

There is a Yiddish proverb that says, “You can’t control the wind, but you can adjust your sails.”

Although we find ourselves, yet again, in a time of uncertainty, the Greater Miami Jewish Federation remains strong thanks to you and the legacy of those who came before us. Click here to read a message from Steven M. Foldes, Chair of The Foundation and Scott Kaplan, The Foundation Director.

INVESTMENT UPDATE

During these challenging times, The Foundation Investment Committee, our investment consultant Cliffwater and our professional staff are in constant communication and continue to monitor the situation to ensure the health and preservation of our funds. The Foundation remains fiscally sound as we recognize the importance of our role as stewards of our community’s precious financial resources.

The first quarter of 2020 was one of the most challenging capital market environments due to the unprecedented economic shock from COVID-19. Fear gripped financial markets, liquidity disappeared and leveraged investors were forced to sell at deeply depressed prices resulting in significant losses in risk assets. Global stocks declined -21% during the quarter. Other risk assets such as high yield, REITs and commodities suffered significant losses of -14%, -27% and -23%, respectively, during the quarter. The losses for risk assets during this period were equivalent to 50-60% of the losses incurred in 2008 due to the global credit crisis.

The Foundation’s Blended Strategy Portfolio declined -12.5% during the quarter versus its passive relative benchmark, which declined -13.4%. Like other long-term investors, the portfolio has a significant allocation to public equities (approximately 40% of the portfolio), which declined -24.1% during the quarter. Fixed income and hedge funds (35% of the portfolio) declined -8.1% and -4.5%, respectively. While public REITs (2% of the portfolio) declined -24.7% during the quarter, private equity and private real assets generated marginally positive returns as valuations are lagged. Despite the losses, performance is within our expectations. As we have reminded our fund holders, the portfolio is designed to generate healthy returns in good times and minimize losses in bad times.

During the first three weeks of April (ending April 17), markets have recovered approximately one-third of the first quarter losses. Markets have reflected the positive impact of monetary and fiscal stimulus measures. We estimate the portfolio has increased 4-5% during this period.

As in other times of volatility, we are adhering to a long-term investment perspective by keeping our discipline and rebalancing the portfolio to strategic targets. We continue to actively monitor portfolio liquidity and risks and evaluate new investment opportunities.

We value your support and trust in us.

Steven A. Wagner, Investment Committee Chair

TELLING MY JEWISH STORY WORKSHOP SERIES

The Foundation is offering a workshop, via Zoom, with Merle R. Saferstein, educator, author and legacy and story-writing expert, for all Federation Legacy Donors, Lions of Judah and Forever Lions. In this two-part series on Wednesday, April 29 and Wednesday, May 6 from 10 to 11:30 a.m., Merle will guide us in the writing of our Jewish legacies.

At one time or another, most of us have asked ourselves these questions: What life lessons have I learned? What do I want to pass along? Am I living my life the way I want people to remember me? What gives my life meaning? Together, we will explore the answers to these questions and many more and will understand that how we live our lives becomes our legacy.

To RSVP for the workshop, please click here.

GOLDEN CARE IN THE TIME OF COVID-19

The professionals in Golden Care, a care management service available to members of the Heritage Society, have been busy taking care of members during this difficult time. While we cannot be there in person, we are working remotely to assist them with daily tasks and, of course, keeping in touch by phone to check on their well-being. Some of our activities include helping members access videoconferencing for adult education classes and different opportunities to socialize and engage with others safely from home, rescheduling medical appointments, arranging for home meal and prescription deliveries and making certain members have what they need to feel comfortable and secure at home for the time being. Click here to read more about Golden Care.

CARES ACT TAX BENEFITS FOR YOU

The Coronavirus Aid, Relief and Economic Security Act (CARES Act) provides more than $2 trillion in relief touching nearly every corner of the US economy: large and small businesses, health care providers, nonprofits, individual citizens and more. Click here to learn how you and/or your company can maximize your charitable giving with greater benefit to you.