Investment Report
Investment update for the quarter ended June 30, 2026
The second quarter of 2026 marked a sharp turnaround from the slump at the end of the first quarter. Stocks rallied strongly — still primarily driven by AI-related investment — even as the conflict in the Middle East continued. The S&P 500 gained roughly 15% for the quarter, its best showing in six years, more than reversing its first-quarter decline.
The Community Foundation’s Long-Term Portfolio maintained its strategic allocation throughout the quarter, with an equity exposure of 65%. The portfolio is aligned to capitalize on both domestic and international equities, providing multiple avenues for strong returns and protection against downturns through its diversification.
June brought renewed caution: the Federal Reserve, under newly installed Chair Kevin Warsh, held rates steady and signaled a cautious path ahead, and AI-related stocks pulled back from their highs. Markets are still showing potential for strong returns – particularly internationally – so optimism for the second half of the year remains.
Our Investment Management Committee, in collaboration with the South Dakota Investment Council, is committed to a disciplined investment approach, focused on long-term performance and continuously monitoring market conditions to identify strategic opportunities to enhance the portfolio's performance.
Investment Returns for Period Ending 6/30/2026
Money Market Portfolio
| Previous Quarter | 0.89% |
| Calendar Year-to-Date | 1.79% |
Intermediate Portfolio
| Previous Quarter | 5.17% |
| Calendar Year-to-Date | 4.76% |
Long-Term Portfolio
| Previous Quarter | 10.09% |
| Calendar Year-to-Date | 9.97% |
Long-Term Portfolio Compound Annualized Returns as of June 30, 2026.
| Thirty Years | 7.66% |
| Twenty Years | 7.42% |
| Ten Years | 9.04% |
| Five Years | 7.25% |
| One Year | 19.39% |