Investment Report

Investment update for the quarter ended Dec. 31, 2024

In the final days of 2024, the S&P 500 experienced a notable decline, closing the year with a 2.6% drop during the period from Christmas to year's end. Despite the downturn, the S&P 500 achieved a remarkable 23.3% gain for the entire year, marking its second consecutive year of more than 20% growth.

This strong annual performance was largely driven by the technology sector, as AI-related stocks continue to surge, and the domestic market overall remains strong.

The late-quarter decline was influenced by factors such as sustained high interest rates, the economic uncertainty of the new administration, and ongoing concerns about inflation and trade wars.

The Community Foundation’s Long-Term Portfolio maintained its tactical target throughout the quarter. With an equity allocation of 65%, the portfolio trailed its benchmarks slightly this quarter but remains focused on its long-term growth strategy. The portfolio, which favored international investments over domestic, is incrementally shifting toward greater allocations of domestic equities to align with global indexes. Allocations to Chinese markets have continued to decrease.

For the year ahead, the Community Foundation remains optimistic for growth and vigilant for any headwinds that may arise. Our Investment Management Committee, in close collaboration with the South Dakota Investment Council, remains committed to its disciplined approach, focusing on long-term growth. The Committee continues to monitor global and domestic markets, assess risks, and seek out strategic opportunities to enhance the portfolio's performance.

Investment Returns for Period Ending 12/31/2024

Money Market Portfolio

Intermediate Portfolio

Long-Term Portfolio

Long-Term Portfolio Compound Annualized Returns as of 12/31/2024