Investment Report

Investment update for the quarter ended Dec. 31, 2025

The final quarter of 2025 saw markets continue to soar to new record high levels, ending the year close to those record values.

AI-related stocks continue to be the prime movers of the S&P 500 as they accelerate growth across multiple industries. Global equity markets saw even higher gains than domestic ones, propelled by similar forces.

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 the domestic and international equities, providing multiple avenues for strong returns and protection against downturns through its diversification.

As 2025 was an exceptional year for investors, 2026 has started out with yet more record high market valuations, yielding optimism for more gains in the year to come. While value driven by AI investment is showing no signs of slowing down, geopolitical conflicts are heating up across the world and inflation remains persistent domestically. Markets were undeterred by these same challenges last year, but only time will tell if they will be similarly unphased in 2026.

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 12/31/2025
 

Money Market Portfolio

Intermediate Portfolio

Long-Term Portfolio
 

Long-Term Portfolio Compound Annualized Returns as of Dec. 31, 2025.