Market commentary and investment performance | Third quarter (July - Sept.) 2021

by John Hartley

Considering the meteoric path of equities since the pandemic lows of March 2020, the September 5-ish% retreat inequities should not have been a surprise.

The dip was modest, perhaps beneficial, but it did push equities negative for Q3, around -1%. Even so, indices remain positive year-to-date, in the high teens' range. Domestic bonds were generally flat for the quarter, though a strong dollar hurt non-U.S. bonds.

Through September, the NCCF portfolio has advanced over 8%, in line with benchmarks. Generally, the 4th quarter is good for stocks, though issues remain including inflation and interest rate concerns, Washington inaction, China tensions, and of course COVID.

  Last 10 years Last five years Last three years Last year
Overall NCCF (Wtd Avg.) 9.8% 10.0% 10.2% 21.6%
NCCF Investment Fund 8.9% 9.3% 10.1% 21.6%
Other Managers (Wtd Avg.) 10.2% 10.4% 10.4% 21.7%
Broad Index 9.4% 10.3% 10.8% 18.4%
Peer Benchmark 9.3% 10.7% 10.3% 22.7%

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 | Third quarter (July - Sept.) 2021","url":"\/blog\/market-commentary-and-investment-performance-third-quarter-july-sept-2021","meta":{"title":"","description":"","excludeFromSitemap":"No"},"ordinal":999,"content":"<p>Considering the meteoric path of equities since the pandemic lows of March 2020, the September 5-ish% retreat inequities should not have been a surprise.<\/p>\r\n<p>The dip was modest, perhaps beneficial, but it did push equities negative for Q3, around -1%. Even so, indices remain positive year-to-date, in the high teens' range. Domestic bonds were generally flat for the quarter, though a strong dollar hurt non-U.S. bonds.<\/p>\r\n<p>Through September, the NCCF portfolio has advanced over 8%, in line with benchmarks. Generally, the 4th quarter is good for stocks, though issues remain including inflation and interest rate concerns, Washington inaction, China tensions, and of course COVID.<\/p>\r\n<table>\r\n<tbody>\r\n<tr>\r\n<td>&nbsp;<\/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>9.8%<\/strong><\/td>\r\n<td><strong>10.0%<\/strong><\/td>\r\n<td><strong>10.2%<\/strong><\/td>\r\n<td><strong>21.6%<\/strong><\/td>\r\n<\/tr>\r\n<tr>\r\n<td><em>NCCF Investment Fund<\/em><\/td>\r\n<td>8.9%<\/td>\r\n<td>9.3%<\/td>\r\n<td>10.1%<\/td>\r\n<td>21.6%<\/td>\r\n<\/tr>\r\n<tr>\r\n<td><em>Other Managers (Wtd Avg.)<\/em><\/td>\r\n<td>10.2%<\/td>\r\n<td>10.4%<\/td>\r\n<td>10.4%<\/td>\r\n<td>21.7%<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Broad Index<\/td>\r\n<td>9.4%<\/td>\r\n<td>10.3%<\/td>\r\n<td>10.8%<\/td>\r\n<td>18.4%<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Peer Benchmark<\/td>\r\n<td>9.3%<\/td>\r\n<td>10.7%<\/td>\r\n<td>10.3%<\/td>\r\n<td>22.7%<\/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":""},"social_sharing":{"share_image":""}},"inMenu":false,"visibleTo":"Everyone","publishedAt":1636499665,"orderChildrenBy":"ordinal","enableComments":false,"permission":"read","id":"e6a130f5e6a5489db04a29ef9e10bf7d","parent":"e76aa785e2f140b6a8bdcb322b91b397","node":81162,"created":1636499666,"modified":1636562408,"fresh":1,"type":"post","children":{},"relations":{"author":[{"title":"John Hartley","content":"","excerpt":"","url":"\/authors\/john-hartley","publishedAt":1395950791,"media":[{"type":"image","url":"https:\/\/nmcdn.io\/e186d21f8c7946a19faed23c3da2f0da\/7868d48393ef4e3bb7bca8cdf7bc2f20\/files\/John-Hartley.jpg","title":"John Hartley","caption":"","size":"12259421"}],"source":null,"inMenu":false,"meta":{"title":"","description":"","excludeFromSitemap":"No"},"ordinal":0,"orderChildrenBy":"","permission":"write","tinyMCE_dummy":"","visibleTo":"Everyone","id":"41ca15a89f894bacb13c691a2492caa5","parent":"289475e074af44b1acb7a469b62466d2","node":20418,"created":1535036011,"modified":1536095948,"fresh":1,"type":"a4794d6408d04576a7acdd10c3fd249d","children":{}}]}}