Berkshire Taconic Community Foundation's Managed Pool portfolio gained 90 basis points (.90%) in the second quarter of 2015, outpacing the Benchmark Index by .60%, with indications that both asset allocation and investment manager selection contributed positively to performance in the quarter. Year to date, the portfolio has appreciated 2.9%, effectively matching the Managed Pool benchmark of 2.8%. Since its inception in August 1999, the portfolio has generated an annualized return of 6.7%, outperforming a global blend of assets (65% MSCI AC World Index/35% Barclays Global Aggregate Index) by 2% with substantially less volatility.
In a very volatile quarter, the portfolio's international equity, flexible capital and private equity segments drove returns. Exposure to smaller cap equities both domestically and internationally was beneficial in the quarter, and outperformance of a majority of emerging market equities also contributed to positive returns within the global equity segment. The foundation's flexible capital portfolio generated significant gains during the quarter, with all but one manager outpacing their respective HRFI benchmarks. The fixed income segment of the portfolio contracted 1.1% but held up better than the Barclays Capital U.S. Aggregate Bond Index, which declined 1.7% during the quarter.
The foundation's portfolio is diversified and has been built for a variety of market conditions in an effort to generate long-term performance in excess of inflation and spending needs. While mindful of the market environment, the investment committee remains committed to the long-term, strategic management of portfolio assets, making only modest adjustments to the asset allocation and replacing non-performing managers when necessary. *Portfolio assets were $109.7 million at June 30, 2015, and the portfolio distribution was 59.3% global public equity, 6.4% global private equity, 24.4% flexible capital, 1.2% inflation hedging, 7.6% global fixed income, 1.1% liquid capital. For more information on the foundation's investment performance and managers, please visit our website or contact Vice President for Finance and Administration A. J. Pietrantone at apietrantone@berkshiretaconic.org or 413.229.0370. |