With the Federal Reserve’s surprising reversal on interest rates and waning investor concern over recession and trade, equity markets surged in 2019, particularly the fourth quarter.
Domestic equities bunched around 30% for the year, with developed international and emerging markets bookending 20%.
Fixed Income also had a strong year with domestics up in the mid- to high-single digits.
Emerging Market debt outperformed developed international.
The NCCF portfolio had a solid year as well.
The portfolio easily surpassed our investment objective of CPI + 6% and just trailed our broad 70/30 benchmark in 2019.
Last 10 years
Last five years
Last three years
Last year
Overall NCCF (Wtd Avg.)
8.0%
6.2%
8.5%
19.5%
NCCF Investment Fund
7.1%
5.0%
7.5%
17.8%
Other Managers (Wtd Avg.)
8.4%
6.9%
9.5%
20.9%
Broad Index
7.5%
6.9%
10.0%
21.2%
Peer Benchmark
7.7%
6.5%
8.9%
19.2%
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.
{"tinyMCE_dummy":"","title":"Market commentary and investment performance | fourth quarter (Oct. - Dec.) 2019","url":"\/blog\/market-commentary-and-investment-performance-fourth-quarter-oct-dec-2019","meta":{"title":"","description":"","excludeFromSitemap":"No"},"ordinal":999,"content":"<p>With the Federal Reserve’s surprising reversal on interest rates and waning investor concern over recession and trade, equity markets surged in 2019, particularly the fourth quarter.<\/p>\r\n<p>Domestic equities bunched around 30% for the year, with developed international and emerging markets bookending 20%.<\/p>\r\n<p>Fixed Income also had a strong year with domestics up in the mid- to high-single digits.<\/p>\r\n<p>Emerging Market debt outperformed developed international.<\/p>\r\n<p>The NCCF portfolio had a solid year as well.<\/p>\r\n<p>The portfolio easily surpassed our investment objective of CPI + 6% and just trailed our broad 70\/30 benchmark in 2019.<\/p>\r\n<table>\r\n<tbody>\r\n<tr>\r\n<td> <\/td>\r\n<td>Last 10 years<\/td>\r\n<td>Last five years<\/td>\r\n<td>Last three years<\/td>\r\n<td>Last year<\/td>\r\n<\/tr>\r\n<tr>\r\n<td><strong>Overall NCCF (Wtd Avg.) <\/strong><\/td>\r\n<td><strong>8.0%<\/strong><\/td>\r\n<td><strong>6.2%<\/strong><\/td>\r\n<td><strong>8.5%<\/strong><\/td>\r\n<td><strong>19.5%<\/strong><\/td>\r\n<\/tr>\r\n<tr>\r\n<td><em>NCCF Investment Fund <\/em><\/td>\r\n<td><em>7.1%<\/em><\/td>\r\n<td><em>5.0%<\/em><\/td>\r\n<td><em>7.5%<\/em><\/td>\r\n<td><em>17.8%<\/em><\/td>\r\n<\/tr>\r\n<tr>\r\n<td><em>Other Managers (Wtd Avg.) <\/em><\/td>\r\n<td><em>8.4%<\/em><\/td>\r\n<td><em>6.9%<\/em><\/td>\r\n<td><em>9.5%<\/em><\/td>\r\n<td><em>20.9%<\/em><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Broad Index<\/td>\r\n<td>7.5%<\/td>\r\n<td>6.9%<\/td>\r\n<td>10.0%<\/td>\r\n<td>21.2%<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Peer Benchmark<\/td>\r\n<td>7.7%<\/td>\r\n<td>6.5%<\/td>\r\n<td>8.9%<\/td>\r\n<td>19.2%<\/td>\r\n<\/tr>\r\n<\/tbody>\r\n<\/table>\r\n<p><em>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.<\/em><\/p>\r\n<p> <\/p>","excerpt":"","media":0,"custom":{"blog_author":{"use_alternate_image":"No"},"masthead":{"title":"","counties":"","affiliate_logo":"","sub_text":"","background_image":"","caption":""},"post_image":{"image":""},"latest_blog":{"post":""}},"inMenu":false,"visibleTo":"Everyone","publishedAt":1581997795,"orderChildrenBy":"ordinal","enableComments":false,"id":"31ec001d6185489485d3d130d8d31692","parent":"e76aa785e2f140b6a8bdcb322b91b397","node":67947,"created":1581997796,"modified":1581997796,"fresh":1,"type":"post","children":{},"relations":{},"permission":"read"}