Performance with Prudent Stewardship and Stability.
The overriding tenet of our philosophy is to preserve capital and enhance its purchasing power. Our non-profit clients come to us with significant assets, usually the result of the generosity of philanthropists and the ongoing, prudent stewardship by Trustees and staff. They turn to us for stability in their investments and, where relevant, a better understanding of the interrelationship between the organization’s operating performance, debt structure, capital pools and the supporting endowment or foundation. We honor that trust by crafting investment programs that seek to protect capital while meeting long-term investment objectives.
Global stock markets rewarded investors handsomely in 2017, with the S&P 500 up 21.8%, the MSCI All Country World Index advancing 24.0% and the MSCI Emerging Markets Index rising 37.8%. While global equity returns were impressive, there were large return deviations within market sub-segments. In the US, value underperformed growth by over 1,600 basis points, 29.6% to 13.2%. The same pattern held true internationally. Likewise, US companies with larger market capitalization meaningfully outperformed their smaller counterparts. Only real estate and energy-related MLPs disappointed. What went right in 2017 and more importantly, what could go wrong in 2018?Click here to read the entire commentary