We are now past the one-year anniversary of the pandemic-induced market bottom. What is important as long-term investors is this: How did we react when faced with a sudden equity market crash? Did we have conviction for our strategy, and did we capitalize on opportunities?
We can report to you the answer to both is a resounding yes! The crash gave rise to two opportunities to invest in very attractive funds that had been previously unavailable: Generation Investment Management Global Equity Strategy, which we added to our Social Impact Pool with a $5M allocation, and Barker Partnership Fund, which we added to our Long-Term Pool with a $5M investment.
In other news
Informed less by market disruptions and more by long-term strategy, we made $11.8M in new private equity commitments, consistent with our strategy of vintage year diversification. Our public equity allocation now tilts toward Domestic (60/40 Domestic/International) and we’ve increased our allocation to Global Equities. Finally, our mix of passive and active management carries all-in costs (consultant + managers + custodian) of just under 1% for both pools.
We are not alone in celebrating one-year returns ending 1Q2021 of nearly 50% – but we also know one year is just a point in time. Given that long term performance protects our grantmaking ability in perpetuity, we are much more focused on the 7.7% ten-year annualized returns as well as the 7.8% annualized returns earned since 1995. These achievements tell us we are on the right track in stewarding our Donors’ philanthropic funds and the Foundation as our ‘community’s asset.’
For additional detail, go to our website at www.jaxcf.org/financial-stewardship