Investment Report

Investment update for the quarter ended June 30, 2025

In the first half of 2025, volatility has been an ever-present concern. In the second quarter alone, the S&P 500 notched concerning lows and new record highs, just a few weeks apart from each other.

Uncertainty regarding international trade policy drove much of the volatility this quarter and, in what is now a familiar theme, domestic tech stocks drove the lion’s share of the growth and nearly single-handedly rallied the market to all-time highs toward the close of the quarter.

The Community Foundation’s Long-Term Portfolio maintained its strategic allocation throughout the quarter, with an equity exposure of 65%. Over the past year, the portfolio has moved away from Chinese investments in favor of domestic equities, better positioning the portfolio to capitalize on continued domestic gains.

While markets are still riding high on massive tech valuations, the future is murky. Escalating geopolitical tensions, ongoing wars, and the threat of new conflicts abroad, along with the specter of uncertainty surrounding trade policy are likely to drive volatility for the foreseeable future. At the same time, markets have shown remarkable resilience in the face of these factors this year, so there is cause for optimism that returns will remain high.

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 6/30/2025
 

Money Market Portfolio

Intermediate Portfolio

Long-Term Portfolio
 

Long-Term Portfolio Compound Annualized Returns as of June 30, 2025.