Professional Documents
Culture Documents
Quarter Report Q1.20
Quarter Report Q1.20
Investment Program
Q UARTERLY R EPORT
March 31, 2020
Market Report
The coronavirus pandemic caused the US stock market to experience historic volatility
and to record one of the worst first quarters ever. Daily volatility close to 10% was experienced
several days during March. Broad market indices suffered losses of 20% or more. Stocks
managed an impressive rally at the end of March, but remain below the highs established
previously.
Large capitalization stocks lost less than small cap by 1,000 basis points and the growth
style lost less than the value style in both capitalization categories. Value stock averages were
hurt by both financials and energy stocks.
As is often the case, when equity performance is very weak, bond returns are often good.
That was true for the first quarter, with all fixed income security groups achieving gains.
-14.1%
-23.3%
-26.7%
Large Cap Large Cap Small Cap Small Cap International Short Term Intermediate
Growth Value Growth Value Stocks Bonds Bonds
Model Portfolio Review
The three Foundation model portfolios holding common stocks sustained losses for the
quarter. The Capital Maintenance model achieved a small gain of 0.6%. Performance relative to
peer groups was favorable for all models for the quarter, as well as longer-term time periods.
Performance relative to passive benchmarks was mixed.
Allocations in all model portfolios containing stocks were revised in late December, 2019
and a new active small cap manager was added—Champlain Small Company. Accounts are not
being actively rebalanced to reflect stock market declines unless significant new deposits into the
accounts are made. Consequently, at quarter-end, accounts were generally underweight stocks
and overweight cash and fixed income securities compared to the models.
The Foundation’s performance for the quarter for the three assets classes in which it
invests, along with comparative peer group and benchmark returns, are shown in the following
table. Consolidated performance of all accounts is also shown.
Account Status
Foundation assets at quarter-end totaled $82.3 million, a decrease of $12.2 million during
the quarter. Investment losses totaled $12.5 million. Three new accounts were opened during
the quarter, with initial deposits of $208,000.
Growth
3 Mo 1 Yr 3 Yr 5 Yr
Income
3 Mo 1 Yr 3 Yr 5 Yr
Capital Maintenance
3 Mo 1 Yr 3 Yr 5 Yr
* Returns for greater than one year are annualized. Past performance does not guarantee future
results.