{"id":4455,"date":"2019-09-04T04:34:00","date_gmt":"2019-09-04T04:34:00","guid":{"rendered":"https:\/\/oafdn.ca\/?p=4455"},"modified":"2022-02-12T04:35:01","modified_gmt":"2022-02-12T04:35:01","slug":"return-on-investments-2018-a-challenging-year-for-foundations","status":"publish","type":"post","link":"https:\/\/oafdn.ca\/fr\/return-on-investments-2018-a-challenging-year-for-foundations\/","title":{"rendered":"Return on Investments &#8211; 2018 a Challenging Year for Foundations"},"content":{"rendered":"<div data-elementor-type=\"wp-post\" data-elementor-id=\"4455\" class=\"elementor elementor-4455\" wpc-filter-elementor-widget=\"1\">\n\t\t\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-5678ad4 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"5678ad4\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-637f98d\" data-id=\"637f98d\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-a4412b2 elementor-widget elementor-widget-text-editor\" data-id=\"a4412b2\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p><img decoding=\"async\" class=\"size-medium wp-image-4456 alignleft\" src=\"https:\/\/oafdn.ca\/wp-content\/uploads\/2022\/02\/council_on_foundations-300x66.jpg\" alt=\"Council of Foundation Logo\" width=\"300\" height=\"66\" srcset=\"https:\/\/oafdn.ca\/wp-content\/uploads\/2022\/02\/council_on_foundations-300x66.jpg 300w, https:\/\/oafdn.ca\/wp-content\/uploads\/2022\/02\/council_on_foundations-768x170.jpg 768w, https:\/\/oafdn.ca\/wp-content\/uploads\/2022\/02\/council_on_foundations-18x4.jpg 18w, https:\/\/oafdn.ca\/wp-content\/uploads\/2022\/02\/council_on_foundations.jpg 940w\" sizes=\"(max-width: 300px) 100vw, 300px\" \/><\/p><p>A recent\u00a0<a title=\"\" href=\"https:\/\/www.commonfund.org\/wp-content\/uploads\/2019\/08\/2018-CCSF-Press-Release.pdf\">report from the U.S. based Council on Foundations<\/a>\u00a0on investment returns for community and private foundations in 2018 is an interesting read. We monitor these reports as one way to confirm how the Foundation investment performance compares to similar size foundations.<br \/><br \/><\/p><p><b><span class=\"blue\">Challenging Year<\/span><\/b><\/p><p>The report articulates how 2018 was a challenging year. On average private foundations earned a negative -3.5% for one year and community foundations a negative -5.3%. The OAF achieved a better, but still negative one-year return of -1.9%. All of these results are reported net of all investment management costs.<\/p><p>One would caution that December 2018 was a particularly challenging year end, and markets recovered strongly in the first quarter of 2019. (The Foundation earned 8.1% for the year ending March, 2019.)<\/p><p>Endowment spending and annual disbursements averaged 4.6% for community foundations. Spending rates declined slightly across the sector in light of the lower returns.<\/p><p>Most organizations\u2019 long-term reporting (10-year performance) no longer includes the 2008 market downturn. When looking at 10-year returns, community foundations with assets below $100 million generated annual returns of approx. 8%. The OAF 10-year return is similar at 8.2%.<\/p><p><br \/><span class=\"blue\"><b>Asset Allocation<\/b><\/span><\/p><p>One of the factors we monitor is the asset allocation strategy of comparable size foundations. During 2018, changes in asset mix were minimal for both private and community foundations. The most significant difference between the OAF and private and community foundations is the larger allocation to alternative strategies and a lower allocation to fixed income by the OAF.<\/p><p>\u00a0<\/p><p><img decoding=\"async\" src=\"https:\/\/www.oafdn.ca\/system\/uploads\/attachments\/000\/000\/882\/original\/chart.JPG?1567628907\" \/><\/p><p><span class=\"plain_grey\">The Foundation board has been lowering direct fixed income as a part of asset mix, as we feel that higher returns are available from equities on a long-term basis.<\/span><\/p><p><br \/><span class=\"blue\"><b>Conclusion<\/b><\/span><\/p><p>It is not our intention to follow the strategies of other foundations. The OAF charts its own strategy which focuses on the long-term and protects capital, ensuring annual returns that allow for disbursements to support the arts.<\/p><p>Nonetheless, it is helpful to monitor what is happening in the charitable sector as a \u201creality check\u201d and assurance that our strategies are doing well.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<\/div>","protected":false},"excerpt":{"rendered":"<p>A recent\u00a0report from the U.S. based Council on Foundations\u00a0on investment returns for community and private foundations in 2018 is an interesting read. We monitor these reports as one way to confirm how the Foundation investment performance compares to similar size foundations. Challenging Year The report articulates how 2018 was a challenging year. On average private [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":4456,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"give_campaign_id":0,"nf_dc_page":"","site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[16],"tags":[],"class_list":["post-4455","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blog"],"acf":[],"_links":{"self":[{"href":"https:\/\/oafdn.ca\/fr\/wp-json\/wp\/v2\/posts\/4455","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/oafdn.ca\/fr\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/oafdn.ca\/fr\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/oafdn.ca\/fr\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/oafdn.ca\/fr\/wp-json\/wp\/v2\/comments?post=4455"}],"version-history":[{"count":0,"href":"https:\/\/oafdn.ca\/fr\/wp-json\/wp\/v2\/posts\/4455\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/oafdn.ca\/fr\/wp-json\/wp\/v2\/media\/4456"}],"wp:attachment":[{"href":"https:\/\/oafdn.ca\/fr\/wp-json\/wp\/v2\/media?parent=4455"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/oafdn.ca\/fr\/wp-json\/wp\/v2\/categories?post=4455"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/oafdn.ca\/fr\/wp-json\/wp\/v2\/tags?post=4455"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}