Market commentary and investment performance | Fourth quarter (October – December 2022)

by Wilson Simmons

2022 is in our rearview mirror. Nearly all sectors of the market ended the year in the red, leaving traditional portfolios with one of the worst total return performance years in the last century. Rising interest rates were the primary culprit and neither equities nor their traditionally risk-averse counterparts in the fixed income space were spared.  

The fourth and final quarter in 2022 was a minor improvement over the first three, with the third quarter being the low point for 2022. To that point, while a typical investment pool at the North Carolina Community Foundation (NCCF) was down between 15% to 17% for the year, pools were up about 6% to 7% in the fourth quarter. Individual fund investment returns will depend upon your fund’s specific investment manager.  

Markets continue to digest a major cyclical change and the prospect of a recession. NCCF and our investment managers understand that a disciplined and balanced approach to investment allocation is what ultimately drives the healthy long-term returns necessary for achieving our collective philanthropic goals. NCCF’s investment pools returns continue to be in line with the benchmarks over the last decade.

Additional market commentary is available from NCCF’s investment advisor, Graystone Morgan Stanley. For investment information specific to your fund, please contact your NCCF Donor Engagement Officer or send an email to support@nccommunityfoundation.org.

  1 year 3 years 5 years 10 years
All Managers (Net Weighted) -17.2% 3.0% 3.6% 5.9%
NCCF Investment Fund -16.7% 3.3% 3.7% 5.8%
Other Managers (Average) -15.1% 3.2% 4.6% 6.2%
Benchmark - Broad -16.5% 2.3% 3.9% 6.1%
Benchmark - Blended -15.5% 3.4% 5.1% 7.5%

Notes: Multi-year percentages are annualized. Returns are net of investment fees. 
1 Benchmark - Broad: This benchmark is a general approach to investment. 70% of the MSCI All Country World Equity Index and 30% of the Bloomberg Barclays Aggregate Bond Index. 
2 Benchmark - Blended: This benchmark takes a more diversified approach to investment. 35% R1000, 15% Russell Midcap, 5% R2000, 10% MSCI EAFE Net, 30% Barclays Govt/Credit Bond, 5% FTSE Treasury Bill 3 Month. 

{"tinyMCE_dummy":"","title":"Market commentary and investment performance | Fourth quarter (October \u2013 December 2022)","url":"\/blog\/market-commentary-and-investment-performance-fourth-quarter-october-december-2022","meta":{"title":"","description":"","excludeFromSitemap":"No"},"ordinal":999,"content":"<p><span data-contrast=\"auto\">2022 is in our rearview mirror. Nearly all sectors of the market ended the year in the red, leaving traditional portfolios with one of the worst total return performance years in the last century. Rising interest rates were the primary culprit and neither equities nor their traditionally risk-averse counterparts in the fixed income space were spared. <\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">&nbsp;<\/span><\/p>\r\n<p><span data-contrast=\"auto\">The fourth and final quarter in 2022 was a minor improvement over the first three, with the third quarter being the low point for 2022. To that point, while a typical investment pool at the North Carolina Community Foundation (NCCF) was down between 15% to 17% for the year, pools were up about 6% to 7% in the fourth quarter. Individual fund investment returns will depend upon your fund&rsquo;s specific investment manager.&nbsp;<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">&nbsp;<\/span><\/p>\r\n<p><span data-contrast=\"auto\">Markets continue to digest a major cyclical change and the prospect of a recession. NCCF and our investment managers understand that a disciplined and balanced approach to investment allocation is what ultimately drives the healthy long-term returns necessary for achieving our collective philanthropic goals. NCCF&rsquo;s investment pools returns continue to be in line with the benchmarks over the last decade.<\/span><\/p>\r\n<p><span class=\"TextRun SCXW206487364 BCX8\" lang=\"EN-US\" xml:lang=\"EN-US\" data-contrast=\"auto\"><a href=\"https:\/\/nmcdn.io\/e186d21f8c7946a19faed23c3da2f0da\/7868d48393ef4e3bb7bca8cdf7bc2f20\/files\/Advisor-Commentary---Q4-2022.pdf\">Additional market commentary<\/a> <span class=\"NormalTextRun CommentHighlightPipeRest SCXW206487364 BCX8\">is available from NCCF&rsquo;s investment advisor, Graystone Morgan Stanley.<\/span><span class=\"NormalTextRun SCXW206487364 BCX8\">&nbsp;<\/span><span class=\"NormalTextRun SCXW206487364 BCX8\">For investment information specific to your fund, please contact your <\/span><\/span><a class=\"Hyperlink SCXW206487364 BCX8\" href=\"\/about-us\/meet-our-staff#donor-engagement\" target=\"_blank\" rel=\"noreferrer noopener\"><span class=\"TextRun Underlined SCXW206487364 BCX8\" lang=\"EN-US\" xml:lang=\"EN-US\" data-contrast=\"none\"><span class=\"NormalTextRun SCXW206487364 BCX8\" data-ccp-charstyle=\"Hyperlink\">NCCF Donor Engagement Officer<\/span><\/span><\/a><span class=\"TextRun SCXW206487364 BCX8\" lang=\"EN-US\" xml:lang=\"EN-US\" data-contrast=\"auto\"><span class=\"NormalTextRun SCXW206487364 BCX8\"> or <\/span><span class=\"NormalTextRun SCXW206487364 BCX8\">send an email<\/span><span class=\"NormalTextRun SCXW206487364 BCX8\"> to <\/span><\/span><a class=\"Hyperlink SCXW206487364 BCX8\" href=\"mailto:support@nccommunityfoundation.org\" target=\"_blank\" rel=\"noreferrer noopener\"><span class=\"TextRun Underlined SCXW206487364 BCX8\" lang=\"EN-US\" xml:lang=\"EN-US\" data-contrast=\"none\"><span class=\"NormalTextRun SCXW206487364 BCX8\" data-ccp-charstyle=\"Hyperlink\">support@nccommunityfoundation.org<\/span><\/span><\/a><span class=\"TextRun SCXW206487364 BCX8\" lang=\"EN-US\" xml:lang=\"EN-US\" data-contrast=\"auto\"><span class=\"NormalTextRun SCXW206487364 BCX8\">.<\/span><\/span><\/p>","excerpt":"<p><span data-contrast=\"auto\">2022 is in our rearview mirror. Nearly all sectors of the market ended the year in the red, leaving traditional portfolios with one of the worst total return performance years in the last century. Rising interest rates were the primary culprit and neither equities nor their traditionally risk-averse counterparts in the fixed income space were spared.<\/span><\/p>","media":0,"custom":{"blocks":{"blocks":[{"fieldset":"8d2e0895df77444baf2690fb407972d5","fieldset_slug":"_button_block","button1_text":"Learn more about our investments","button1_link":"https:\/\/www.nccommunityfoundation.org\/create-a-fund\/investments","button2_text":"","button2_link":"","button3_text":"","button3_link":""},{"fieldset":"fd39717673c942dfb102a174d17a8b99","fieldset_slug":"_wysiwyg","text":"<table style=\"margin-left: auto; margin-right: auto;\">\r\n<tbody>\r\n<tr style=\"text-align: center;\">\r\n<td>&nbsp;<\/td>\r\n<td><strong>1 year<\/strong><\/td>\r\n<td><strong>3 years<\/strong><\/td>\r\n<td><strong>5 years<\/strong><\/td>\r\n<td><strong>10 years<\/strong><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>All Managers&nbsp;(Net Weighted)<\/td>\r\n<td>-17.2%<\/td>\r\n<td>3.0%<\/td>\r\n<td>3.6%<\/td>\r\n<td>5.9%<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>NCCF Investment Fund<\/td>\r\n<td>-16.7%<\/td>\r\n<td>3.3%<\/td>\r\n<td>3.7%<\/td>\r\n<td>5.8%<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Other Managers (Average)<\/td>\r\n<td>-15.1%<\/td>\r\n<td>3.2%<\/td>\r\n<td>4.6%<\/td>\r\n<td>6.2%<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Benchmark - Broad<\/td>\r\n<td>-16.5%<\/td>\r\n<td>2.3%<\/td>\r\n<td>3.9%<\/td>\r\n<td>6.1%<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Benchmark - Blended<\/td>\r\n<td>-15.5%<\/td>\r\n<td>3.4%<\/td>\r\n<td>5.1%<\/td>\r\n<td>7.5%<\/td>\r\n<\/tr>\r\n<\/tbody>\r\n<\/table>\r\n<p style=\"text-align: left;\"><i><span data-contrast=\"none\">Notes: Multi-year percentages are annualized. Returns are net of investment fees.<\/span><\/i>&nbsp;<br \/><i><span data-contrast=\"none\">1 Benchmark - Broad: This benchmark is a general approach to investment. 70% of the MSCI All Country World Equity Index and 30% of the Bloomberg Barclays Aggregate Bond Index.<\/span><\/i>&nbsp;<br \/><i><span data-contrast=\"none\">2 Benchmark - Blended: This benchmark takes a more diversified approach to investment. 35% R1000, 15% Russell Midcap, 5% R2000, 10% MSCI EAFE Net, 30% Barclays Govt\/Credit Bond, 5% FTSE Treasury Bill 3 Month.<\/span><\/i><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">&nbsp;<\/span><\/p>","image":"","alignment":""}]},"blog_author":{"use_alternate_image":"No"},"masthead":{"title":"","counties":"","affiliate_logo":"","sub_text":"","background_image":"","caption":""},"latest_blog":{"post":""},"post_image":{"image":"https:\/\/nmcdn.io\/e186d21f8c7946a19faed23c3da2f0da\/7868d48393ef4e3bb7bca8cdf7bc2f20\/files\/stock-market-1853262_1920.jpg"},"social_sharing":{"share_image":"https:\/\/nmcdn.io\/e186d21f8c7946a19faed23c3da2f0da\/7868d48393ef4e3bb7bca8cdf7bc2f20\/files\/Wilson-Simmons.jpg"},"the_latest":{"show_latest_posts_by":""}},"inMenu":false,"visibleTo":"Everyone","publishedAt":1676039602,"orderChildrenBy":"ordinal","enableComments":false,"permission":"read","id":"0071eca78ef84884a584fb2f9b731bcf","parent":"e76aa785e2f140b6a8bdcb322b91b397","node":97806,"created":1676039602,"modified":1676058339,"fresh":1,"type":"post","children":{},"relations":{"author":[{"title":"Wilson Simmons","content":"","excerpt":"","url":"\/authors\/wilson-simmons","publishedAt":1532718186,"media":[{"type":"image","url":"https:\/\/nmcdn.io\/e186d21f8c7946a19faed23c3da2f0da\/7868d48393ef4e3bb7bca8cdf7bc2f20\/files\/Wilson-Simmons_2.jpg","title":"Wilson Simmons","caption":"","size":"7222504"}],"source":null,"inMenu":false,"meta":{"title":"","description":"","excludeFromSitemap":"No"},"ordinal":0,"orderChildrenBy":"","permission":"write","tinyMCE_dummy":"","visibleTo":"Everyone","id":"dcd21228db234816b8242842ef9afcf4","parent":"289475e074af44b1acb7a469b62466d2","node":101489,"created":1535036010,"modified":1683837649,"fresh":1,"type":"a4794d6408d04576a7acdd10c3fd249d","children":{}}],"category":[{"tinyMCE_dummy":"","title":"NCCF News","url":"\/categories\/nccf-news","meta":{"title":"","description":"","excludeFromSitemap":"No"},"ordinal":999,"content":"","excerpt":"","media":"0","inMenu":false,"visibleTo":"Everyone","publishedAt":1536248733,"source":null,"orderChildrenBy":"","id":"1b78a2294942490a941757f68891b9dd","parent":"9fd09d3a1e4f4302a38c86e00a22828b","node":20907,"created":1536248733,"modified":1536248733,"fresh":1,"type":"f9a6b2b005cb46ed8778f11c37e4d3a5","children":{}}]}}