View
0
Download
0
Category
Preview:
Citation preview
MAKING THE MOST OF YOUR ORGANIZATION’S CHARITABLE ASSETS
InFaith Investment Conference Call February 8, 2018
TODAY’S SPEAKERS
Chris Andersen President &
Executive Director
Kim Borton Director of
Grants & Donor Services
Letitia Johnson & Natalie Herter Cambridge Associates Investment Advisors
2
INFAITH’S MISSION
To serve our donors with integrity as together we change lives and spread joy by sharing our blessings with the world.
3
OUR CORE VALUES
SERVICE Each donor is at the center of the giving process
STEWARDSHIP Stewardship and the way charitable assets are invested matters
COLLABORATION The best charitable gifts stem from being wise with money
POSSIBILITIES Giving isn’t just for the wealthy – we can all be philanthropists
RESULTS InFaith is in this business to deliver results
4
SERVICE TO ENDOWMENTS
• 2017 highlights
• 96% endowment fund satisfaction
• Charitable giving & tax reform
Thank you!
5
STEWARDSHIP OF YOUR ORGANIZATION’S CHARITABLE ASSETS
• 2017 investment portfolio updates
– Mission investing to increase impact of your endowment fund
• InFaith portfolio performance
• Current markets
• Balancing risk & reward
• Looking ahead
6
CORE GROWTH PORTFOLIO
New allocation of private equity investments for Core Growth Portfolio. InFaith’s focus on the long-term is demonstrated by introducing a 10% private equities allocation to the Core Growth Portfolio. Private equity investments have proven to be a key driver of long-term returns for top-performing diversified portfolios.
Global Public Equity
Fixed Income
Private Investments
Real Assets
Diversifiers
7
MISSION GROWTH PORTFOLIO
More robust Mission Growth Portfolio. This portfolio offers increased diversification thanks to an influx of new assets and the addition of five new investment managers. In addition to potentially stronger risk-adjusted returns over the long term, new mission-related investments enhance positive community outcomes.
Global Public Equity
Fixed Income
Diversifiers
8
WOMENINVEST PORTFOLIO Introduction of WomenInvest Portfolio.
Comprised of 75% equities and 25% fixed income investments, this portfolio interrupts the cycle of violence against women by investing in economic opportunity, access to education and affordable housing. By allocating all or a portion of your charitable fund’s assets in WomenInvest, you’re part of a portfolio designed to grow your charitable gifts and create positive change throughout our shared community.
Global Public Equity
Alternatives
Fixed Income
International
Cash
9
INCOME PORTFOLIO
Income Portfolio stays the same.
The objective for the Income Portfolio is stability of charitable gifts. Investments perform to allow for maximum grantmaking of your assets over a short time horizon.
100% fixed income
10
OUR STRATEGY FOR INVESTING ASSETS
• Long-term
• Equity oriented
• Diversified
• Actively managed
• Continually rebalanced
11
INFAITH PORTFOLIO RETURNS December 31, 2017
QTD 1-Year Return
3-Year Return
5-Year Return
10-Year Return
Since Inception
Core Growth Portfolio 4.2% 17.0% 6.3% 6.8% 4.5% n/a
Mission Growth Portfolio
3.9% 19.6% 7.2% 7.8% n/a 6.2%
WomenInvest Portfolio 3.9% n/a n/a n/a n/a 6.3%
Income Portfolio 0.5% 4.0% 2.2% n/a n/a 2.2%
12
GLO BAL ASSET CLASS PERFO RM ANCEAs of Decem ber 31, 2017 • US Dollar
Notes: Asset classes represented by: M SCI US Index (US), M SCI Europe Index (Europe), M SCI Emerging M arkets Index (EM ), M SCI Japan Index (Japan), 80/20 Datastream World Oil &
Gas and World M ining Index blend (NRE), B loomberg Commodity Index (Commodity), A lerian M LP Index (M LPs), Hedge Fund Research Fund Weighted Composite Index (Hedge Funds),
Datastream 10-yr US Treasury Benchmark Index (US 10-Yr Treasury), B loomberg Barclays Aggregate Bond Index (US Agg Bonds), and Bloomberg Barclays M unicipal Bond Index (US
M uni), respectively. A ll returns are to tal returns. Where the currency effect is taken into account, USD returns data are bolded, and local currency returns data are italicized. Total return data
for all M SCI indexes are net o f dividend taxes. Hedge fund data are through October 31.
Sources: A lerian, Barclays, B loomberg L.P., Hedge Fund Research, Inc., M SCI Inc., and Thomson Reuters Datastream. M SCI data provided "as is" without any express or implied
warranties.
15.0
7.4 10.1 4.6 8.2
11.2
17.2
-0.1
-8.5-0.1
5.0
1.3 2.13.0
-2.7-3.6 -6.0
US Europe EM Japan NRE Commodity MLPs Hedge
Funds
10-Yr US
Treasury
US Agg
Bonds
US
Muni
Trailing 5-Year Returns (%)
21.225.5
13.1
37.3
30.6
24.0
19.7
12.3
1.7
-6.5
7.1
2.1 3.5 5.4
12.4
6.7
4.2
US Europe EM Japan NRE Commodity MLPs Hedge
Funds
10-Yr US
Treasury
US Agg
Bonds
US
Muni
Year-t o-Date 2017 Returns (%)PERFORMANCE BY ASSET CLASS
13
EQUITY RETURNS SUPPORTED BY REBOUND IN EARNINGS GROWTH
CUM ULATIVE W EALTH O F REAL EARNINGS PER SHARE BY REGIO N
Novem ber 30, 2007 – Decem ber 31, 2017 • Novem ber 30, 2007 = 100 • Local Currency
-40
-20
0
20
40
60
80
100
120
140
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
US UK EMU Japan
Sources: MSCI Inc. and Thomson Reuters Datastream. MSCI data provided "as is" without any express or implied warranties. Notes: Cumulative wealth is based on trailing 12-month EPS, adjusted by each country or region's official consumer price index. Japan CPI as of November 30, 2017. Data are monthly.
14
LOOKING AHEAD –UNCERTAINTY REMAINS HIGH
Sources: MSCI Inc. and Thomson Reuters Datastream. MSCI data provided "as is" without any express or implied warranties.
Notes: This analysis uses our valuation-based scenario return projection models. Our return to normal scenario incorporates current valuations and assumes equity valuations revert to fair value over ten years. This scenario makes assumptions about the market environment including mild inflation; moderate real earnings growth; and low corporate default rates, government bond yields, and credit spreads. Projections are in local currency terms and are intended to represent total returns. Projected global equity returns are based on a weighted average of the projections for US, developed ex US, and EM equities using month-end weights for the MSCI All Country World Index. Cash returns are based on 3-Month US Treasury Bill yields.
15
A CLOSER LOOK AT U.S. PUBLIC EQUITY COMPANIES
AM O UNT O F PUBLIC/PRIVATE US EQ UITIES TRADED/HELD DO M ESTICALLY
1996–2016 • US Dollar
0
2
4
6
8
10
0
10,000
20,000
30,000
40,000
1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016
Ratio
of P
ub
lic vs Priva
te
Tota
l Dom
est
ic E
quit
y O
uts
tand
ing (U
S$B
)
Publicly Traded Equity Privately Held Equity Ratio (RHS)
Sources: Federal Reserve Board Flow of Funds, Thomson Reuters Datastream, and Vanguard.
Notes: All data are annual. Total domestic equity outstanding includes domestically owned, publicly traded, and closely held equity issues of nonfinancial and financial corporate businesses as defined by the Federal Reserve Board Flow of Funds. Equity issued by public companies is considered publicly traded equity. Equity issued by private companies is considered privately held (i.e., closely held) equity. All equity issued are priced at market value.
16
LOOKING AHEAD
Stay neutral on risk
Favor international equities over U.S. equities
Be mindful of interest rate risk
with bond holdings
Diversify your
diversifiers
17
POSSIBILITIES & RESULTS
• The best charitable gifts are those that stem from being wise with money
• 2017 record year of giving and granting
• InFaith results with Creation Care initiative
• Opportunities for InFaith support in 2018
18
QUESTIONS?
19
THANK YOU
We’re here to serve you. Please call 800-365-4172 with questions regarding your organization’s endowment fund, additional gifts from supporters, investments or anything else.
Our website, inFaithFound.org, may hold the answer to many of your questions.
20
CONTACT US
inFaithFound.org 800-365-4172
Recommended