According to the FoundationMark Grantmaker Investment Value Index (“GIV Index”) foundations’ third quarter investment performance was up 0.6%, bringing year to date gains to 12.9%. The GIV Index continues to lag a passive balanced portfolio consisting of 60% stocks (S&P 500) and 40% bonds (Bloomberg Barclays U.S. Aggregate Index).
In the third quarter, U.S. equity markets outperformed international markets, particularly emerging market shares, limiting foundations’ gains to 0.6%.
The effect of a “flight to quality” can be seen as high grade bonds outperformed high yield bonds for the quarter and the year to date.