News for Donor Advisors

Investment Update: Summer 2020

graphs and charts

With declining market volatility and equity markets nearly offsetting earlier losses, the second quarter of 2020 was a stark contrast to the preceding quarter. After declining 19.60% during the first quarter, the S&P 500 index posted nearly a 21% return for the second quarter finishing down 3.08% calendar year to date.

Prior to the second quarter, the Sioux Falls Area Community Foundation increased its equity allocation from 65% to 75%.

Investment returns

As equity markets rebounded, the allocation shifted from 75% back down to 65%. A higher tactical allocation to cash will serve the portfolio well as valuations are high and market uncertainty remains.

A disciplined approach to following the investment model developed by the SD Investment Council will guide the Foundation to react well in the months ahead.

A NOTE FOR ENDOWED FUND HOLDERS:

Based on this investment update, we’re pleased to share that our Board has again recommended a 4% spend rate.

To protect the health and safety of our donors and employees, our physical office is closed. Our team is currently working remotely and is standing by ready to assist you. Please contact us by phone at 605.336.7055 or by email at info@sfacf.org.