Q1 2019 Investment Update & Trends

San Diego Beaches
The San Diego Foundation’s strong first quarter performance led to endowment growth, which provides support for the San Diego region.

Since 1975, The San Diego Foundation and our donors have granted more than $1.1 billion to advance a vibrant quality of life in San Diego.

While most often we talk about the significant impact these programs and local donors have within our communities, behind the scenes the Investment Committee and I as Chief Investment Officer work to maximize the impact of our donor’s social investments.

Our Quarterly Investment Conference Calls provide donors with insights into the state of the market and current Foundation endowment and non-endowment portfolio investment performance.

We encourage you to listen to the Q1 2019 call and review the slides shared by our team of experts to learn more about global trends, portfolio performance and market expectations.

Recent Trends

After brief remarks from our new President & CEO Mark Stuart, Steve Klosterman, Regional Director with Halbert Hargrove and The San Diego Foundation Board Investment Chair, and I started off by discussing the trends that are driving the market in 2019.

As we’ve discussed in previous calls, there has been a lot of publicity about tariffs and whether increased costs from tariffs will be passed on to consumers. This is a situation that continues to evolve and our Investment Committee is closely monitoring how it may impact our portfolios.

Most notably, the recent changes in the market have further validated our position as value-driven investors. While we saw a decline in the later stages of 2018 due to market volatility, there was a dramatic turn in the markets as the Federal Reserve softened its stance on further interest rate hikes.

Markets have rallied significantly throughout the beginning of 2019 and we are seeing the impact of that shift in our strong returns.

Portfolio Outlook

The San Diego Foundation Investment Committee takes a long-term, institutional approach to constructing investment portfolios.

As we’ve seen, The Foundation’s investments are off to a really strong start in 2019 and the market continues to favor investors who take a more long-term, disciplined approach. On the call, Steve Klosterman and I discussed in more detail our investment strategies and key drivers of portfolio performance. I encourage you to listen to the recording for further insight and information to help you maximize your charitable investments and grantmaking.

Read more about how we help grow your giving with our investment strategy and performance