Investment Update
Global market equities rebounded in the second quarter following the sharp decline in the first quarter as the COVID-19 pandemic spread across the world. The recovery was broad-based geographically and was driven by a variety of factors including the reopening of economies, optimism regarding vaccines and treatment for the virus and unprecedented levels of fiscal and monetary stimulus by governments and central banks. US and global stocks rose 20 percent and 18 percent, respectively, since March 31. High yield bonds, REITs and commodities also rebounded over the last quarter. In aggregate, most asset classes have now recovered most of the losses experienced in the first quarter.
The Foundation of the Greater Miami Jewish Federation blended strategy (main pool) also rebounded during the second quarter by an estimated 8.67 percent, resulting in a -4.92 percent and 0.31 percent calendar and fiscal year-to-date returns through June 30, respectively. As we navigate through these uncertain times, we want to remind our fund holders of the important achievements we have accomplished in the blended portfolio over the last 10 years. Investment returns within this portfolio have grown at an annualized rate of 6 percent. During the same period, assets in The Foundation’s main investment pool have increased by an estimated $90 million from $132 million in June 2010 to $222 million in June 2020.
We are proud of the processes we have established to manage the community’s precious financial resources. Our Investment Committee is comprised of seasoned investors and top money management professionals who are actively involved in the community and understand their vital role. In addition, we partner with a reputable and experienced investment consultant, Cliffwater LLC. The investment program is also supported by an internal team following industry best practices.
Looking ahead, we continue to monitor the portfolio and evaluate new opportunities as we recognize the importance of having a fiscally sound endowment to ensure the permanent financial support and stability of our community.
Thank you for your continued trust and support of our Jewish community.
Steven A. Wagner, Investment Committee Chair
