What more can we say about the financial events of 2008?  The Jewish Foundation, like other community and other private endowments was not immune from the market forces, returning (net) -14.2% on its investment portfolio for the year.  Still, it could have been worse as other larger endowments suffered losses in the magnitude of 25% to 45%.

The Foundation is the beneficiary of professional and thoughtful advice both from its independent investment advisors, I3 Advisors Inc., and from committed volunteers who serve and have served on its Investment Committee.  In 1998, the Foundation established its balanced portfolio of securities known as the Long Term Capital Fund and the associated Reserve Fund (to be utilized in periods of adverse market conditions). Correspondingly a continuously-revised or “living” Statement of Investment Policies & Guidelines appropriate for a balanced fund and rigorous procedures to ensure professional due diligence over the fund’s assets has provided the framework for the Foundation to position itself as well as possible for the balanced portfolio contingencies that it currently faces.  Such due diligence resulted in an “overweight” fixed income position during the 4th quarter of 2008 which cushioned the blow to some degree.  For perspective, 46.8% of the Foundations investments were invested in the equity markets while larger endowments in the United States were invested at 70% – 75%. The global equity markets fell in the magnitude of 40% to 50%.       

However, relativity gives us little comfort and we are being proactive in our efforts to minimize the market impact.  Although at the time of this writing the market seems to be holding its own (in fact the Canadian equity market returned +3% for the year-to-date at April 9th) market volatility remains high.  The Board, Executive and Staff are working hard at finding ways to reduce the impact of market forces on the Foundation’s constituents.  Administratively, we have reviewed with zeal our processes and procedures to ensure greater efficiencies. The 2009 operating budget was reduced 5.6% from 2008 – with the primary objective of actual expenditures landing 10% less than the 2008 budget. 

The recurring theme in the marketplace is that there will be no substantial recovery until the financial markets in the United States are stabilized and reorganized.  Some stabilization appears to be presently occurring.  In the meantime the Foundation staff is at your service, as always, and dealing with the challenges of these times for all concerned is our first priority.