Market commentary and investment performance | Fourth quarter (Oct. – Dec.) 2020

Though markets collapsed in the first quarter of 2020, they roared back from Q2 on. On the back of central bank monetary accommodation (interest rate cuts and liquidity infusions) and massive fiscal stimulus, world equities ended the year up 15.5%. U.S. equities advanced almost 21%. Broadly, U.S. fixed income rose 7-1/2%.

The NCCF portfolio benefited from the recovery of global equity markets in the latter three quarters of 2020. The portfolio continues to exceed the NCCF investment objective of CPI (inflation) + 6%. Economic fundamentals point to recovery, hopefully the markets will follow suit.

 Last 10 yearsLast five yearsLast three yearsLast year
Overall NCCF (Wtd Avg.) 8.1%9.5%8.3%14.2%
NCCF Investment Fund 7.2%8.7%7.6%14.5%
Other Managers (Wtd Avg.) 8.9%10.4%9.0%14.0%
Broad Index7.8%10.1%9.0%14.3%
Peer Benchmark7.4%9.4%7.5%11.0%
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.