Market commentary and investment performance | Second quarter (April – June) 2019

by John Hartley

Though not as brisk as Q1, equity markets advanced comfortably in Q2 2019, with both US and international developed markets rising about 4%.

It was bumpy though, with rate cut and trade deal hopes hauling domestic markets back into positive territory in June.

About the only index in the red for Q2 was the Chinese Shanghai Composite, down 5% on trade and growth concerns.

Perhaps more surprising, bond yields tumbled on expectations for a Fed course-change, back toward rate cuts.

US bonds were up 3% in Q2, 6% YTD.

With rate and trade hopes already baked into prices, tough to see much more growth in 2019.

  Last 10 years Last five years Last three years Last year
Overall NCCF (Wtd Avg) 8.7% 5.1% 8.1% 4.5%
NCCF Investment Fund 8.1% 4.6% 7.1% 4.0%
Other Managers (Wtd Avg) 9.4% 5.7% 9.2% 5.1%
Broad Index 8.5% 5.4% 8.9% 6.7%
Peer Benchmark 8.6% 4.8% 8.5% 3.4%

Notes: Multi-year percentages are annualized. Returns are net of investment fees. The Broad (Policy) Index equals 70% of the MSCI All Country World Equity Index and 30% of the Bloomberg Barclays Aggregate Bond Index. The Peer Benchmark is a summary of comparable community foundations.