Market commentary and investment performance | Second quarter (April-June 2022)
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August 3, 2022
It has been a brutal second quarter and first half of the year, with the culprits well-known – inflation, Fed rate tightening, Russia’s invasion of Ukraine, lockdowns in China, and recession fears.
Major equity indices were in, or perilously close to, Bear territory (a drop of 20% from a recent high), and other assets were not immune. Bonds, gold, and real estate were beat down as well.
There are some positives. Even with this 20% drop, equities are still 20% above pre-pandemic levels, employment remains strong, and the consumer has not yet retreated. Remain calm and remember that philanthropic investing takes a very long-term perspective. Prices for good companies are currently very attractive.
Last 10 years
Last five years
Last three years
Last year
Overall NCCF (Wtd Avg.)
6.9%
5.3%
4.7%
-13.7%
NCCF Investment Fund
6.2%
5.0%
4.7%
-13.6%
Other Managers (Wtd Avg.)
7.2%
5.5%
4.7%
-13.7%
Broad Policy Index
6.7%
5.4%
4.3%
-14.0%
Peer Benchmark
6.9%
5.5%
5.4%
-12.4%
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 (n=100+).
{"tinyMCE_dummy":"","title":"Market commentary and investment performance | Second quarter (April-June 2022)","url":"\/blog\/market-commentary-and-investment-performance-second-quarter-april-june-2022","meta":{"title":"","description":"","excludeFromSitemap":"No"},"ordinal":999,"content":"<p>It has been a brutal second quarter and first half of the year, with the culprits well-known – inflation, Fed rate tightening, Russia’s invasion of Ukraine, lockdowns in China, and recession fears. <\/p>\r\n<p>Major equity indices were in, or perilously close to, Bear territory (a drop of 20% from a recent high), and other assets were not immune. Bonds, gold, and real estate were beat down as well.<\/p>\r\n<p>There are some positives. Even with this 20% drop, equities are still 20% above pre-pandemic levels, employment remains strong, and the consumer has not yet retreated. Remain calm and remember that philanthropic investing takes a very long-term perspective. Prices for good companies are currently very attractive.<\/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>6.9%<\/strong><\/td>\r\n<td><strong>5.3%<\/strong><\/td>\r\n<td><strong>4.7%<\/strong><\/td>\r\n<td><strong>-13.7%<\/strong><\/td>\r\n<\/tr>\r\n<tr>\r\n<td><em>NCCF Investment Fund<\/em><\/td>\r\n<td>6.2%<\/td>\r\n<td>5.0%<\/td>\r\n<td>4.7%<\/td>\r\n<td>-13.6%<\/td>\r\n<\/tr>\r\n<tr>\r\n<td><em>Other Managers (Wtd Avg.)<\/em><\/td>\r\n<td>7.2%<\/td>\r\n<td>5.5%<\/td>\r\n<td>4.7%<\/td>\r\n<td>-13.7%<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Broad Policy Index<\/td>\r\n<td>6.7%<\/td>\r\n<td>5.4%<\/td>\r\n<td>4.3%<\/td>\r\n<td>-14.0%<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Peer Benchmark<\/td>\r\n<td>6.9%<\/td>\r\n<td>5.5%<\/td>\r\n<td>5.4%<\/td>\r\n<td>-12.4%<\/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 (n=100+).<\/em><\/p>","excerpt":"","media":0,"custom":{"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\/John-Hartley.jpg"},"social_sharing":{"share_image":""},"the_latest":{"show_latest_posts_by":""}},"inMenu":false,"visibleTo":"Everyone","publishedAt":1659531600,"orderChildrenBy":"ordinal","enableComments":false,"permission":"read","id":"ba7429825d9f424f926c7a07bc51cab6","parent":"e76aa785e2f140b6a8bdcb322b91b397","node":90289,"created":1659474773,"modified":1659545073,"fresh":1,"type":"post","children":{},"relations":{}}