updated December 7, 2016
Presentation and Update Archive
Endowment Advisory Committee: Chris Bittman, John Ege*, John Fenley*, Paul McPheeters*, Bryan Ritz and Minyoung Sohn with Mike Davis and Heather Miller as Ex Officio members. Our Investment Consultant is Paul Schreder of Ellwood Associates.
Endowment Value = $25,142,028
Performance: Year to date through November 30, our Endowment has gained +6.0% versus our Policy Index return of +4.3%
EAC Meeting on November 8, 2016
We reviewed the factors affecting both recent performance and long term performance. Committee also discussed the primary sources of Risk in the portfolio: (1) The Emphasis on Floating Rate Loans in our Fixed Income is our Energy and MLP investments.
Before Election Night 2016
November 2nd, I compared the Financial Markets to the 2012 NFL Monday Night Football "Fail Mary"
During Election Night 2016
After Election Night 2016
U.S. Dollar has strengthened, moving up above "100" to the highest levels in more than a decade
💸 The Dollar has room to soar. U.S. Interest Rates are rising. If the Administration executes on its pro-growth policies . . . and if the rest of the world remains stuck, the dollar will climb over 2000 highs.
📉 U.S. Ten Year Treasury Yields since 2009
Inflation Expectations have (finally) ticking up
Endowment Value = $25,142,028
(estimate provided by Ellwood Associates, updated through November 30, 2016)
Performance: Year to date through November 30, our Endowment has gained +6.0% versus our Policy Index return of +4.3%
Asset Allocation
Committee moved to a defensive posture with a focus on U.S. Stocks, Cash and Floating Rate Securities. Regarding Alternatives, the Committee has exited Hedge Fund investments* and focused on specific investment exposures including MLPs, Energy and Gold.
Asset Allocation with a Purpose
Offense, Defense & Special Teams (Alternatives)
FIXED INCOME
In Q3 2016, Colorado Academy's Fixed Income Portfolio outperformed due to our Focus on Floating Rate strategies
Year to Date: CA +7.8% versus Agg +2.5%
Bond Prices move in the opposite direction of Interest Rates
EQUITY
Year to date, our Equity Portfolio is performing in-line with the Policy Index, both up +6.1%
- 26% of Fund is invested in Passive U.S. Index strategies, the S&P 500 ETF and Russell 3000, +9.7% and +10.5% respectively, on a YTD basis
- 14% of Fund is invested in Vanguard Dividend Growth . . . this strategy has lagged in this rising rate environment, because the dividends have less luster versus "risk-free" rates
- Mixed success in International and Emerging Markets
SPECIAL TEAMS
CA's "Alternative" Investments
Year to date, CA's capital at risk in the Alternatives category has returned +4.8% exceeding the HFRI Fund-of-Funds Index which returned 0.3%
CA has nearly completed the liquidation of hedge funds in the Endowment
Endowment Advisory Committee: Next scheduled meeting is February 7, 2017
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