Q1 Investment Update and Trends

Since 1975, The San Diego Foundation and its donors have granted more than $977 million to strengthen the 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 our Investment Committee and staff works to maximize the value of every charitable dollar by making prudent investment decisions.

The Foundation’s new Quarterly Investment Conference Calls provide donors with insights into the state of the market and current Foundation endownment and non-endowment portfolio investment performance.

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

Recording:

Please note, due to technical difficulties, the first fives minutes of the call were not recorded.

Presentation Slides:

Recent Trends

Over the last year and a half in the U.S., oil prices have declined, while wages have increased, which led to more consumer comfort and stability, shared Horacio Valeiras, Principal at HAV Capital and Foundation Board Investment Chair. While this does not create growth rates reminiscent of the early 2000s, it does provide confidence that the economy will continue to expand at its current rate of 1.5 – 2 percent, he explained.

This slow yet steady growth rate also parallels that of other global markets, described Valeiras, who added, there are many factors that have affected the slower growth that we see today compared with 2011 and 2012.

Among the causes discussed were shifts in emerging international markets, global adoption of negative interest rates, and caution surrounding China’s growth.

Portfolio Outlook

The Foundation’s Investment Committee takes a long-term, institutional approach to constructing investment portfolios. There will be short periods when our strategy is working, and other periods where it is out of favor.

As evidenced at the beginning of 2016, the market took a downturn in performance as global capital markets depreciated significantly. Since oil prices found a bottom in February, the market turned direction and rallied back toward new highs.

On the call, Valeiras and I outlined how The Foundation’s asset classes promote diversification, and how certain assets, such as real estate, are currently the biggest drivers of performance.

Learn more about our investment strategy and performance on the Q1 Investment Call.

Learn More

About Matt Fettig, CFA

As Chief Investment Officer, Matt oversees and manages the investment strategies and activities of The San Diego Foundation. He works with the Investment Committee of the Board of Governors, senior staff, investment managers, auditors and outside consultants to develop investment strategies that maximize returns and help grant more money to local nonprofit organizations, helping to improve the quality of life in San Diego.