August 2013
New Fiscal Year, New JCF President Welcoming Scott Krieger “I am very comfortable with my role,” says Scott Krieger, the new president of the Board of Trustees of the Jewish Community Foundation of Greater MetroWest NJ (JCF). “I’m here to spread the word about JCF and how we aid Federation agencies and the interests of our fund holders.” If Scott is making it sound easy to serve as president of the largest community foundation in New Jersey, which also serves as the endowment and planned giving office of Jewish Federation of Greater MetroWest NJ, it could be because he has more than 20 years of experience as a lay leader with Federation. A loyal Super Sunday volunteer, he has also served as UJA campaign chair and treasurer and vice president
of finance. Scott is a former chair of the Young Leadership Division and a recipient of the Julius & Bessie Cohn Young Leadership Award. Since joining the JCF Board four years ago, he has been an active member of the Grant Review Committee. Scott’s leadership will guide both lay leaders and professionals as JCF works to secure deferred gifts for Federation; manage assets under investment (valued at $355 million as of June 30, 2013); advise multigenerational families on philanthropy and family legacies; and support MetroWest Tomorrow, JCF’s endowment campaign to sustain Jewish life via programs that build connection, continuity, and community. Scott is a certified public accountant and a partner with the firm of Friedman LLP. His specialties include real estate entities, not-for-profit associations, and information technology companies. A former board member of the Synagogue of the Suburban Torah Center, Scott is also active with the Friendship Circle of MetroWest NJ. He lives with his wife, Robyn, and three children in Livingston.
To learn more about JCF, your funds under management, or MetroWest Tomorrow, please contact Joshua Rednik, executive director, at (973) 929-3060 or [email protected].
A Jewish Community Foundation of Greater MetroWest NJ Quarterly • www.jcfmetrowest.org • August 2013 • Page 4
MAKING A
Statement August 2013 Dear JCF Fund Holders, Enclosed you will find both the quarterly and full fiscal year-end statements for your Jewish Community Foundation (JCF) Fund. Please note that both statements reflect contribution and distribution activity as well as investment performance through June 30, 2013. Overall, returns in the second quarter were mixed. The S&P 500 Index posted a return of 2.9%, while the 10 year U.S. treasury yield rose 45 bps to end the fiscal year at 4.9%. Although there were strong gains in developed market equities and REITs, uncertainty regarding monetary policy led to volatility and underperformance in many other asset classes. Funds with international holdings were down an average of 2.5% during the quarter. Overall, commodities had a more challenging year, although as in most years, the performance between commodities varied widely. Domestic stocks rallied sharply during the second
quarter, fueled by improved consumer confidence, accommodative policies from the Federal Reserve, rising home prices, and modest improvements in the labor market. As of June 30, 2013, Foundation assets totaled $355 million, up from $352 million on March 31, 2013. For the quarter ending June 30, 2013, the Equity Pool gained 1.0% while its benchmark gained 1.4%. The Fixed Pool ended the quarter down 0.5%, while its benchmark was down 0.8%. Finally, the JCF Managed Pool gained 1.2% while its blended benchmark was up 0.5%. For the 12-month period ending June 30, 2013, the Equity Pool gained 18.9% compared to its benchmark, which gained 19.8%. Over the same period, the Fixed Pool rose 1.7% while its benchmark rose 0.7%. The Managed Pool was up 12.6% for the year, compared to its benchmark, which rose 11.9%. Additional information on the performance and composition of the JCF investment pools is on pages two and three of this newsletter.
We hope you find Making a Statement worthwhile and informative. As always, please contact us with any questions or to get more information. Joshua can be contacted directly at (973) 929-3060 or [email protected]. Regards,
Scott Krieger Joshua W. Rednik President Executive Director
In This Issue Fund Performance
Pgs. 2-3
New Fiscal Year, New JCF President
Pg. 4
A Jewish Community Foundation of Greater MetroWest NJ Quarterly • www.jcfmetrowest.org • August 2013 • Page 1
MANAGED POOL
Asset Allocation
MANAGED POOL (continued)
% of Pool
A n ch or a g e Pa r t n er s Offsh or e
2 .2
Bla ck st on e Pa r t n er s Offsh or e
7 .4
Da v idson Kem pn er Pa r t n er s Offsh or e
2 .1
Gr een lig h t Ma st er s Offsh or e Pa r t n er s T ot a l Fl exibl e Ca pit a l
Pu bl ic Equ it ies Domes tic Equities Br ow n A dv isor y
5 .5
DSM Ca pit a l Pa r t n er s Hot ch k is & W iley
5 .1 4 .8
Pet er B. Ca n n ell
6 .6
Sou n d Sh or e
7 .3
V a n Ber k om
3 .4 T otal Domes tic Equities
32.7
International Equities Dodg e & Cox In t er n a t ion a l
5 .6
Fidelit y Div er sified In t er n a t ion a l
3 .5
Mon dr ia n Focu sed Em er g in g Ma r k et s
2 .3
Pa r a m et r ic Em er g in g Ma r k et s
5 .5 18.2
T ot a l Pu bl ic Equ it ies
50.9
In v est m en t
2 .3
6 2 .2
Colch est er Globa l In v est or s
1 .9
Ea t on V a n ce Loa n Fu n d
6 .2
St a t e of Isr a el Bon ds T ot a l Fixed In com e Fu n ds
2 .8 76.5
Fidu cia r y T r u st
9 .1 0 .3
Specia l t y Fu n ds
17.5
Bla ck st on e Pa r t n er s Offsh or e
Ca sh W ilm in g t on Gov t MM T ot a l In v est m en t s
1.1 100.0
Asset Allocation
In v est m en t
Ba in Eu r ope Fu n d III
0 .6
Dom est ic Equ it y Ma n a ger s
Com m on fu n d Pr iv a t e Equ it y V I
1 .1
Br ow n A dv isor y
Com m on fu n d Pr iv a t e Equ it y V II Com m on fu n d In t er n a t ion a l V I
1 .3 2 .1
DSM Ca pit a l Pa r t n er s
FLA G Pr iv a t e Equ it y II
0 .9
Goldm a n Sa ch s V in t a g e Fu n d V OS Goldm a n Sa ch s V in t a g e Fu n d V I OS
1 0 .3 LCG 7 .7 LCG
Hot ch k is & W iley Pet er B. Ca n n ell
9 .0 LCV 1 4 .2 A CV
1 .3
Sou n d Sh or e
1 3 .6 LCV
0 .1
V a n Ber k om
8.6
T ot a l Equ it ies
59.5
6 .1
T ot a l Dom est ic Equ it y Ma n a ger s
SCC
In t er n a t ion a l Equ it y Fu n ds Dodg e & Cox In t er n a t ion a l
Natural Res ources
Fidelit y Div er sified In t er n a t ion a l
9 .8 LCB
0 .9 1 .4
Mon dr ia n Focu sed Em er g in g Ma r k et s
5 .0 EMC
Pa r a m et r ic Em er g in g Ma r k et s
2 .9 EMV
2.3
W illia m Bla ir In t er n a t ion a l T ot a l In t er n a t ion a l Equ it y Ma n a ger s
T otal Natural Res ources Real Es tate Bea con Ca pit a l St r a t eg ic Pa r t n er s V I
0 .5
Bla ck st on e Rea l Est a t e Pa r t n er s V
0 .8
Bla ck st on e Rea l Est a t e Pa r t n er s V I
1 .6
Bla ck st on e Rea l Est a t e Pa r t n er s V II
0 .8
Bla ck st on e Ret a il Pr in cipa l Pa r t n er s
0 .3
Ca bot In du st r ia l V a lu e Fu n d III
1 .2
St er lin g A m er ica n Pr oper t y V
0 .4
T otal Real Es tate
5.6
T ot a l In fl a t ion Hedgin g
7.9
For information on the style of equity investments in the Managed Pool, please see the Equity Pool asset allocation.
1 .6
Mer r ill Ly n ch MM
0 .3 1.9
T ot a l Ca sh
1 1 .7 LCV
T ot a l In v est m en t s
T ot a l In v est m en t s
9 .7 MCG 39.1 100.0
Equ it y Pool St y l e Legen d A CV =A l l Ca p V a l u e
LCB=La r ge Ca p Bl en d
LCV =La r ge Ca p V a l u e
LCG=La r ge Ca p Gr owt h
MCG=Mid Ca p Gr owt h
SCC=Sm a l l Ca p Cor e
EMC=Em er gin g Mkt s Cor e EMV =Em er gin g Mkt s V a l u e
All information is up to date as of June 30, 2013
100.0
CHARACTERISTICS (5-YEAR HISTORY) (July 1, 2008 – June 30, 2013) Historical Perform ance – JCF Inv estm ent Pools Annualized Return 2.4% 3.8% 1 .4%
Cum ulativ e Return 1 2.6 20.5 7 .4
% Positiv e % Negativ e Quarters Quarters 65 35 75 25 80 20
Historical Perform ance – JCF Inv estm ent Pool Benchm arks
60.9
In fl a t ion Hedgin g Com m on fu n d Na t u r a l Resou r ces V II Com m on fu n d Na t u r a l Resou r ces V III
W ilm in g t on Gov t MM
Pool Equity Fix ed Managed
Benchm ark Equity Fix ed Managed
Annualized Return 3.7 % 3.4% 4.0%
Cum ulativ e Return 1 9.8 1 8.1 21 .8
1 0 0 .0
Equity: Blend of 60% of the S&P 500 Index + 40% of the MSCI EAFE Index as of April 1, 2013. Blend of 65% & 35% as of March 31, 2013 and prior. Fixed:
Bank of America/Merrill Lynch 1-5 Year U.S. Corporate & Government Bond Index
Managed: Blend of 60% of the Equity Pool benchmark + 40% of the Fixed Pool benchmark
21.6
Ca sh
% of Pool St y l e
% of Pool
1 .2
T ot a l Specia l t y Fu n ds
OBJECTIVE: The Equity Pool attempts to provide a return that is superior to a blend of the S&P 500 and the MSCI EAFE over a market cycle.
1 .2
8 .4
Fidelit y Floa t in g Ra t e Hig h In com e
EQUITY POOL
Ba in Ca pit a l Fu n d X
1 2 .0
Ea t on V a n ce Loa n Fu n d
1 .1 T ot a l Ca sh
In v est m en t Wilm in g t on U.S. Gov t MM
Fidu cia r y T r u st
Pr iv a t e Equ it ies
T ot a l Pr iv a t e Equ it ies
% of Pool
Fixed
T ot a l Fixed
Benchmarks for JCF Pools
Fixed In com e Fu n ds
14.0
1 1 .5
St a t e of Isr a el Bon ds
OBJECTIVE: The Money Market Pool invests only in short-term fixed-income securities and seeks to preserve capital.
Asset Allocation
Asset Allocation
Colch est er Globa l In v est or s
1 .3
W illia m Bla ir In t er n a t ion a l T otal International Equities
MONEY MARKET POOL
OBJECTIVE: The Fixed Income Pool invests in short to intermediate term securities and attempts to provide a return that is superior to the Merrill Lynch 1-5 Year Government/Corporate Index over a market cycle.
Fl exibl e Ca pit a l
OBJECTIVE: The Managed Pool attempts to provide a return that is superior to a balanced stock and bond portfolio at a lower volatility over an entire market cycle.
In v est m en t
FIXED INCOME POOL
PORTFOLIO
% Positiv e % Negativ e Quarters Quarters 70 30 85 15 70 30
THE JEWISH COMMUNITY FOUNDATION OF GREATER METROWEST NJ The mission of the Jewish Community Foundation of Greater MetroWest NJ (JCF) is to service the charitable aims and interests of JCF donors by gathering, investing and disbursing charitable funds on their behalf, and encouraging allocation of these monies to enhance and assure the continuity of charitable institutions designated by the donor and approved by the Foundation Board. While JCF offers special encouragement for planned giving and the use of endowments for Federation and its beneficiary agencies, it also welcomes the opportunity to be of service to recognized charities of every kind: religious, educational and secular in content, and regional, national and international in scope. Established in 1949, JCF is one of the 10 largest foundations in the Jewish federation system, with more than $355 million in assets (as of 6/30/13) and nearly $100 million in future commitments.
HISTORICAL PERFORMANCE Period Ending: June 30, 2013 EQUITY 3 Month Pool 1.0% Benchmark 1.4%
YTD 9.1% 10.2%
1 Year 18.9% 19.8%
3 Year 13.5% 15.0%
5 Year 2.4% 3.7%
FIXED 3 Month Pool -0.5% Benchmark -0.8%
YTD 0.1% -0.5%
1 Year 1.7% 0.7%
3 Year 2.4% 2.1%
5 Year 3.8% 3.4%
MANAGED 3 Month Pool 1.2% Benchmark 0.5%
YTD 6.5% 5.8%
1 Year 12.6% 11.9%
3 Year 9.8% 9.9%
5 Year 1.4% 4.0%
Joshua W. Rednik, Executive Director 973.929.3060 | [email protected] Howard J. Rabner, Chief Financial Officer 973.929.3020 | [email protected] 901 Route 10 | P.O. Box 929 Whippany, NJ 07981-0929 www.jcfmetrowest.org | [email protected]
Past performance is not indicative of future results.
Past performance is not indicative of future results.
A Jewish Community Foundation of Greater MetroWest NJ Quarterly • www.jcfmetrowest.org • August 2013 • Page 2
A Jewish Community Foundation of Greater MetroWest NJ Quarterly • www.jcfmetrowest.org • August 2013 • Page 3
MANAGED POOL
Asset Allocation
MANAGED POOL (continued)
% of Pool
A n ch or a g e Pa r t n er s Offsh or e
2 .2
Bla ck st on e Pa r t n er s Offsh or e
7 .4
Da v idson Kem pn er Pa r t n er s Offsh or e
2 .1
Gr een lig h t Ma st er s Offsh or e Pa r t n er s T ot a l Fl exibl e Ca pit a l
Pu bl ic Equ it ies Domes tic Equities Br ow n A dv isor y
5 .5
DSM Ca pit a l Pa r t n er s Hot ch k is & W iley
5 .1 4 .8
Pet er B. Ca n n ell
6 .6
Sou n d Sh or e
7 .3
V a n Ber k om
3 .4 T otal Domes tic Equities
32.7
International Equities Dodg e & Cox In t er n a t ion a l
5 .6
Fidelit y Div er sified In t er n a t ion a l
3 .5
Mon dr ia n Focu sed Em er g in g Ma r k et s
2 .3
Pa r a m et r ic Em er g in g Ma r k et s
5 .5 18.2
T ot a l Pu bl ic Equ it ies
50.9
In v est m en t
2 .3
6 2 .2
Colch est er Globa l In v est or s
1 .9
Ea t on V a n ce Loa n Fu n d
6 .2
St a t e of Isr a el Bon ds T ot a l Fixed In com e Fu n ds
2 .8 76.5
Fidu cia r y T r u st
9 .1 0 .3
Specia l t y Fu n ds
17.5
Bla ck st on e Pa r t n er s Offsh or e
Ca sh W ilm in g t on Gov t MM T ot a l In v est m en t s
1.1 100.0
Asset Allocation
In v est m en t
Ba in Eu r ope Fu n d III
0 .6
Dom est ic Equ it y Ma n a ger s
Com m on fu n d Pr iv a t e Equ it y V I
1 .1
Br ow n A dv isor y
Com m on fu n d Pr iv a t e Equ it y V II Com m on fu n d In t er n a t ion a l V I
1 .3 2 .1
DSM Ca pit a l Pa r t n er s
FLA G Pr iv a t e Equ it y II
0 .9
Goldm a n Sa ch s V in t a g e Fu n d V OS Goldm a n Sa ch s V in t a g e Fu n d V I OS
1 0 .3 LCG 7 .7 LCG
Hot ch k is & W iley Pet er B. Ca n n ell
9 .0 LCV 1 4 .2 A CV
1 .3
Sou n d Sh or e
1 3 .6 LCV
0 .1
V a n Ber k om
8.6
T ot a l Equ it ies
59.5
6 .1
T ot a l Dom est ic Equ it y Ma n a ger s
SCC
In t er n a t ion a l Equ it y Fu n ds Dodg e & Cox In t er n a t ion a l
Natural Res ources
Fidelit y Div er sified In t er n a t ion a l
9 .8 LCB
0 .9 1 .4
Mon dr ia n Focu sed Em er g in g Ma r k et s
5 .0 EMC
Pa r a m et r ic Em er g in g Ma r k et s
2 .9 EMV
2.3
W illia m Bla ir In t er n a t ion a l T ot a l In t er n a t ion a l Equ it y Ma n a ger s
T otal Natural Res ources Real Es tate Bea con Ca pit a l St r a t eg ic Pa r t n er s V I
0 .5
Bla ck st on e Rea l Est a t e Pa r t n er s V
0 .8
Bla ck st on e Rea l Est a t e Pa r t n er s V I
1 .6
Bla ck st on e Rea l Est a t e Pa r t n er s V II
0 .8
Bla ck st on e Ret a il Pr in cipa l Pa r t n er s
0 .3
Ca bot In du st r ia l V a lu e Fu n d III
1 .2
St er lin g A m er ica n Pr oper t y V
0 .4
T otal Real Es tate
5.6
T ot a l In fl a t ion Hedgin g
7.9
For information on the style of equity investments in the Managed Pool, please see the Equity Pool asset allocation.
1 .6
Mer r ill Ly n ch MM
0 .3 1.9
T ot a l Ca sh
1 1 .7 LCV
T ot a l In v est m en t s
T ot a l In v est m en t s
9 .7 MCG 39.1 100.0
Equ it y Pool St y l e Legen d A CV =A l l Ca p V a l u e
LCB=La r ge Ca p Bl en d
LCV =La r ge Ca p V a l u e
LCG=La r ge Ca p Gr owt h
MCG=Mid Ca p Gr owt h
SCC=Sm a l l Ca p Cor e
EMC=Em er gin g Mkt s Cor e EMV =Em er gin g Mkt s V a l u e
All information is up to date as of June 30, 2013
100.0
CHARACTERISTICS (5-YEAR HISTORY) (July 1, 2008 – June 30, 2013) Historical Perform ance – JCF Inv estm ent Pools Annualized Return 2.4% 3.8% 1 .4%
Cum ulativ e Return 1 2.6 20.5 7 .4
% Positiv e % Negativ e Quarters Quarters 65 35 75 25 80 20
Historical Perform ance – JCF Inv estm ent Pool Benchm arks
60.9
In fl a t ion Hedgin g Com m on fu n d Na t u r a l Resou r ces V II Com m on fu n d Na t u r a l Resou r ces V III
W ilm in g t on Gov t MM
Pool Equity Fix ed Managed
Benchm ark Equity Fix ed Managed
Annualized Return 3.7 % 3.4% 4.0%
Cum ulativ e Return 1 9.8 1 8.1 21 .8
1 0 0 .0
Equity: Blend of 60% of the S&P 500 Index + 40% of the MSCI EAFE Index as of April 1, 2013. Blend of 65% & 35% as of March 31, 2013 and prior. Fixed:
Bank of America/Merrill Lynch 1-5 Year U.S. Corporate & Government Bond Index
Managed: Blend of 60% of the Equity Pool benchmark + 40% of the Fixed Pool benchmark
21.6
Ca sh
% of Pool St y l e
% of Pool
1 .2
T ot a l Specia l t y Fu n ds
OBJECTIVE: The Equity Pool attempts to provide a return that is superior to a blend of the S&P 500 and the MSCI EAFE over a market cycle.
1 .2
8 .4
Fidelit y Floa t in g Ra t e Hig h In com e
EQUITY POOL
Ba in Ca pit a l Fu n d X
1 2 .0
Ea t on V a n ce Loa n Fu n d
1 .1 T ot a l Ca sh
In v est m en t Wilm in g t on U.S. Gov t MM
Fidu cia r y T r u st
Pr iv a t e Equ it ies
T ot a l Pr iv a t e Equ it ies
% of Pool
Fixed
T ot a l Fixed
Benchmarks for JCF Pools
Fixed In com e Fu n ds
14.0
1 1 .5
St a t e of Isr a el Bon ds
OBJECTIVE: The Money Market Pool invests only in short-term fixed-income securities and seeks to preserve capital.
Asset Allocation
Asset Allocation
Colch est er Globa l In v est or s
1 .3
W illia m Bla ir In t er n a t ion a l T otal International Equities
MONEY MARKET POOL
OBJECTIVE: The Fixed Income Pool invests in short to intermediate term securities and attempts to provide a return that is superior to the Merrill Lynch 1-5 Year Government/Corporate Index over a market cycle.
Fl exibl e Ca pit a l
OBJECTIVE: The Managed Pool attempts to provide a return that is superior to a balanced stock and bond portfolio at a lower volatility over an entire market cycle.
In v est m en t
FIXED INCOME POOL
PORTFOLIO
% Positiv e % Negativ e Quarters Quarters 70 30 85 15 70 30
THE JEWISH COMMUNITY FOUNDATION OF GREATER METROWEST NJ The mission of the Jewish Community Foundation of Greater MetroWest NJ (JCF) is to service the charitable aims and interests of JCF donors by gathering, investing and disbursing charitable funds on their behalf, and encouraging allocation of these monies to enhance and assure the continuity of charitable institutions designated by the donor and approved by the Foundation Board. While JCF offers special encouragement for planned giving and the use of endowments for Federation and its beneficiary agencies, it also welcomes the opportunity to be of service to recognized charities of every kind: religious, educational and secular in content, and regional, national and international in scope. Established in 1949, JCF is one of the 10 largest foundations in the Jewish federation system, with more than $355 million in assets (as of 6/30/13) and nearly $100 million in future commitments.
HISTORICAL PERFORMANCE Period Ending: June 30, 2013 EQUITY 3 Month Pool 1.0% Benchmark 1.4%
YTD 9.1% 10.2%
1 Year 18.9% 19.8%
3 Year 13.5% 15.0%
5 Year 2.4% 3.7%
FIXED 3 Month Pool -0.5% Benchmark -0.8%
YTD 0.1% -0.5%
1 Year 1.7% 0.7%
3 Year 2.4% 2.1%
5 Year 3.8% 3.4%
MANAGED 3 Month Pool 1.2% Benchmark 0.5%
YTD 6.5% 5.8%
1 Year 12.6% 11.9%
3 Year 9.8% 9.9%
5 Year 1.4% 4.0%
Joshua W. Rednik, Executive Director 973.929.3060 | [email protected] Howard J. Rabner, Chief Financial Officer 973.929.3020 | [email protected] 901 Route 10 | P.O. Box 929 Whippany, NJ 07981-0929 www.jcfmetrowest.org | [email protected]
Past performance is not indicative of future results.
Past performance is not indicative of future results.
A Jewish Community Foundation of Greater MetroWest NJ Quarterly • www.jcfmetrowest.org • August 2013 • Page 2
A Jewish Community Foundation of Greater MetroWest NJ Quarterly • www.jcfmetrowest.org • August 2013 • Page 3
New Fiscal Year, New JCF President Welcoming Scott Krieger “I am very comfortable with my role,” says Scott Krieger, the new president of the Board of Trustees of the Jewish Community Foundation of Greater MetroWest NJ (JCF). “I’m here to spread the word about JCF and how we aid Federation agencies and the interests of our fund holders.” If Scott is making it sound easy to serve as president of the largest community foundation in New Jersey, which also serves as the endowment and planned giving office of Jewish Federation of Greater MetroWest NJ, it could be because he has more than 20 years of experience as a lay leader with Federation. A loyal Super Sunday volunteer, he has also served as UJA campaign chair and treasurer and vice president
of finance. Scott is a former chair of the Young Leadership Division and a recipient of the Julius & Bessie Cohn Young Leadership Award. Since joining the JCF Board four years ago, he has been an active member of the Grant Review Committee. Scott’s leadership will guide both lay leaders and professionals as JCF works to secure deferred gifts for Federation; manage assets under investment (valued at $355 million as of June 30, 2013); advise multigenerational families on philanthropy and family legacies; and support MetroWest Tomorrow, JCF’s endowment campaign to sustain Jewish life via programs that build connection, continuity, and community. Scott is a certified public accountant and a partner with the firm of Friedman LLP. His specialties include real estate entities, not-for-profit associations, and information technology companies. A former board member of the Synagogue of the Suburban Torah Center, Scott is also active with the Friendship Circle of MetroWest NJ. He lives with his wife, Robyn, and three children in Livingston.
To learn more about JCF, your funds under management, or MetroWest Tomorrow, please contact Joshua Rednik, executive director, at (973) 929-3060 or [email protected].
A Jewish Community Foundation of Greater MetroWest NJ Quarterly • www.jcfmetrowest.org • August 2013 • Page 4
MAKING A
Statement August 2013 Dear JCF Fund Holders, Enclosed you will find both the quarterly and full fiscal year-end statements for your Jewish Community Foundation (JCF) Fund. Please note that both statements reflect contribution and distribution activity as well as investment performance through June 30, 2013. Overall, returns in the second quarter were mixed. The S&P 500 Index posted a return of 2.9%, while the 10 year U.S. treasury yield rose 45 bps to end the fiscal year at 4.9%. Although there were strong gains in developed market equities and REITs, uncertainty regarding monetary policy led to volatility and underperformance in many other asset classes. Funds with international holdings were down an average of 2.5% during the quarter. Overall, commodities had a more challenging year, although as in most years, the performance between commodities varied widely. Domestic stocks rallied sharply during the second
quarter, fueled by improved consumer confidence, accommodative policies from the Federal Reserve, rising home prices, and modest improvements in the labor market. As of June 30, 2013, Foundation assets totaled $355 million, up from $352 million on March 31, 2013. For the quarter ending June 30, 2013, the Equity Pool gained 1.0% while its benchmark gained 1.4%. The Fixed Pool ended the quarter down 0.5%, while its benchmark was down 0.8%. Finally, the JCF Managed Pool gained 1.2% while its blended benchmark was up 0.5%. For the 12-month period ending June 30, 2013, the Equity Pool gained 18.9% compared to its benchmark, which gained 19.8%. Over the same period, the Fixed Pool rose 1.7% while its benchmark rose 0.7%. The Managed Pool was up 12.6% for the year, compared to its benchmark, which rose 11.9%. Additional information on the performance and composition of the JCF investment pools is on pages two and three of this newsletter.
We hope you find Making a Statement worthwhile and informative. As always, please contact us with any questions or to get more information. Joshua can be contacted directly at (973) 929-3060 or [email protected]. Regards,
Scott Krieger Joshua W. Rednik President Executive Director
In This Issue Fund Performance
Pgs. 2-3
New Fiscal Year, New JCF President
Pg. 4
A Jewish Community Foundation of Greater MetroWest NJ Quarterly • www.jcfmetrowest.org • August 2013 • Page 1
of finance. Scott is a former chair of the Young Leadership Division and a recipient of the Julius & Bessie Cohn Young Leadership Award. Since joining the JCF Board four years ago, he has been an active member of the Grant Review Committee. Scott’s leadership will guide both lay leaders and professionals as JCF works to secure deferred gifts for Federation; manage assets under investment (valued at $355 million as of June 30, 2013); advise multigenerational families on philanthropy and family legacies; and support MetroWest Tomorrow, JCF’s endowment campaign to sustain Jewish life via programs that build connection, continuity, and community. Scott is a certified public accountant and a partner with the firm of Friedman LLP. His specialties include real estate entities, not-for-profit associations, and information technology companies. A former board member of the Synagogue of the Suburban Torah Center, Scott is also active with the Friendship Circle of MetroWest NJ. He lives with his wife, Robyn, and three children in Livingston.
To learn more about JCF, your funds under management, or MetroWest Tomorrow, please contact Joshua Rednik, executive director, at (973) 929-3060 or [email protected].
A Jewish Community Foundation of Greater MetroWest NJ Quarterly • www.jcfmetrowest.org • August 2013 • Page 4
MAKING A
Statement August 2013 Dear JCF Fund Holders, Enclosed you will find both the quarterly and full fiscal year-end statements for your Jewish Community Foundation (JCF) Fund. Please note that both statements reflect contribution and distribution activity as well as investment performance through June 30, 2013. Overall, returns in the second quarter were mixed. The S&P 500 Index posted a return of 2.9%, while the 10 year U.S. treasury yield rose 45 bps to end the fiscal year at 4.9%. Although there were strong gains in developed market equities and REITs, uncertainty regarding monetary policy led to volatility and underperformance in many other asset classes. Funds with international holdings were down an average of 2.5% during the quarter. Overall, commodities had a more challenging year, although as in most years, the performance between commodities varied widely. Domestic stocks rallied sharply during the second
quarter, fueled by improved consumer confidence, accommodative policies from the Federal Reserve, rising home prices, and modest improvements in the labor market. As of June 30, 2013, Foundation assets totaled $355 million, up from $352 million on March 31, 2013. For the quarter ending June 30, 2013, the Equity Pool gained 1.0% while its benchmark gained 1.4%. The Fixed Pool ended the quarter down 0.5%, while its benchmark was down 0.8%. Finally, the JCF Managed Pool gained 1.2% while its blended benchmark was up 0.5%. For the 12-month period ending June 30, 2013, the Equity Pool gained 18.9% compared to its benchmark, which gained 19.8%. Over the same period, the Fixed Pool rose 1.7% while its benchmark rose 0.7%. The Managed Pool was up 12.6% for the year, compared to its benchmark, which rose 11.9%. Additional information on the performance and composition of the JCF investment pools is on pages two and three of this newsletter.
We hope you find Making a Statement worthwhile and informative. As always, please contact us with any questions or to get more information. Joshua can be contacted directly at (973) 929-3060 or [email protected]. Regards,
Scott Krieger Joshua W. Rednik President Executive Director
In This Issue Fund Performance
Pgs. 2-3
New Fiscal Year, New JCF President
Pg. 4
A Jewish Community Foundation of Greater MetroWest NJ Quarterly • www.jcfmetrowest.org • August 2013 • Page 1
MANAGED POOL
Asset Allocation
MANAGED POOL (continued)
% of Pool
A n ch or a g e Pa r t n er s Offsh or e
2 .2
Bla ck st on e Pa r t n er s Offsh or e
7 .4
Da v idson Kem pn er Pa r t n er s Offsh or e
2 .1
Gr een lig h t Ma st er s Offsh or e Pa r t n er s T ot a l Fl exibl e Ca pit a l
Pu bl ic Equ it ies Domes tic Equities Br ow n A dv isor y
5 .5
DSM Ca pit a l Pa r t n er s Hot ch k is & W iley
5 .1 4 .8
Pet er B. Ca n n ell
6 .6
Sou n d Sh or e
7 .3
V a n Ber k om
3 .4 T otal Domes tic Equities
32.7
International Equities Dodg e & Cox In t er n a t ion a l
5 .6
Fidelit y Div er sified In t er n a t ion a l
3 .5
Mon dr ia n Focu sed Em er g in g Ma r k et s
2 .3
Pa r a m et r ic Em er g in g Ma r k et s
5 .5 18.2
T ot a l Pu bl ic Equ it ies
50.9
In v est m en t
2 .3
6 2 .2
Colch est er Globa l In v est or s
1 .9
Ea t on V a n ce Loa n Fu n d
6 .2
St a t e of Isr a el Bon ds T ot a l Fixed In com e Fu n ds
2 .8 76.5
Fidu cia r y T r u st
9 .1 0 .3
Specia l t y Fu n ds
17.5
Bla ck st on e Pa r t n er s Offsh or e
Ca sh W ilm in g t on Gov t MM T ot a l In v est m en t s
1.1 100.0
Asset Allocation
In v est m en t
Ba in Eu r ope Fu n d III
0 .6
Dom est ic Equ it y Ma n a ger s
Com m on fu n d Pr iv a t e Equ it y V I
1 .1
Br ow n A dv isor y
Com m on fu n d Pr iv a t e Equ it y V II Com m on fu n d In t er n a t ion a l V I
1 .3 2 .1
DSM Ca pit a l Pa r t n er s
FLA G Pr iv a t e Equ it y II
0 .9
Goldm a n Sa ch s V in t a g e Fu n d V OS Goldm a n Sa ch s V in t a g e Fu n d V I OS
1 0 .3 LCG 7 .7 LCG
Hot ch k is & W iley Pet er B. Ca n n ell
9 .0 LCV 1 4 .2 A CV
1 .3
Sou n d Sh or e
1 3 .6 LCV
0 .1
V a n Ber k om
8.6
T ot a l Equ it ies
59.5
6 .1
T ot a l Dom est ic Equ it y Ma n a ger s
SCC
In t er n a t ion a l Equ it y Fu n ds Dodg e & Cox In t er n a t ion a l
Natural Res ources
Fidelit y Div er sified In t er n a t ion a l
9 .8 LCB
0 .9 1 .4
Mon dr ia n Focu sed Em er g in g Ma r k et s
5 .0 EMC
Pa r a m et r ic Em er g in g Ma r k et s
2 .9 EMV
2.3
W illia m Bla ir In t er n a t ion a l T ot a l In t er n a t ion a l Equ it y Ma n a ger s
T otal Natural Res ources Real Es tate Bea con Ca pit a l St r a t eg ic Pa r t n er s V I
0 .5
Bla ck st on e Rea l Est a t e Pa r t n er s V
0 .8
Bla ck st on e Rea l Est a t e Pa r t n er s V I
1 .6
Bla ck st on e Rea l Est a t e Pa r t n er s V II
0 .8
Bla ck st on e Ret a il Pr in cipa l Pa r t n er s
0 .3
Ca bot In du st r ia l V a lu e Fu n d III
1 .2
St er lin g A m er ica n Pr oper t y V
0 .4
T otal Real Es tate
5.6
T ot a l In fl a t ion Hedgin g
7.9
For information on the style of equity investments in the Managed Pool, please see the Equity Pool asset allocation.
1 .6
Mer r ill Ly n ch MM
0 .3 1.9
T ot a l Ca sh
1 1 .7 LCV
T ot a l In v est m en t s
T ot a l In v est m en t s
9 .7 MCG 39.1 100.0
Equ it y Pool St y l e Legen d A CV =A l l Ca p V a l u e
LCB=La r ge Ca p Bl en d
LCV =La r ge Ca p V a l u e
LCG=La r ge Ca p Gr owt h
MCG=Mid Ca p Gr owt h
SCC=Sm a l l Ca p Cor e
EMC=Em er gin g Mkt s Cor e EMV =Em er gin g Mkt s V a l u e
All information is up to date as of June 30, 2013
100.0
CHARACTERISTICS (5-YEAR HISTORY) (July 1, 2008 – June 30, 2013) Historical Perform ance – JCF Inv estm ent Pools Annualized Return 2.4% 3.8% 1 .4%
Cum ulativ e Return 1 2.6 20.5 7 .4
% Positiv e % Negativ e Quarters Quarters 65 35 75 25 80 20
Historical Perform ance – JCF Inv estm ent Pool Benchm arks
60.9
In fl a t ion Hedgin g Com m on fu n d Na t u r a l Resou r ces V II Com m on fu n d Na t u r a l Resou r ces V III
W ilm in g t on Gov t MM
Pool Equity Fix ed Managed
Benchm ark Equity Fix ed Managed
Annualized Return 3.7 % 3.4% 4.0%
Cum ulativ e Return 1 9.8 1 8.1 21 .8
1 0 0 .0
Equity: Blend of 60% of the S&P 500 Index + 40% of the MSCI EAFE Index as of April 1, 2013. Blend of 65% & 35% as of March 31, 2013 and prior. Fixed:
Bank of America/Merrill Lynch 1-5 Year U.S. Corporate & Government Bond Index
Managed: Blend of 60% of the Equity Pool benchmark + 40% of the Fixed Pool benchmark
21.6
Ca sh
% of Pool St y l e
% of Pool
1 .2
T ot a l Specia l t y Fu n ds
OBJECTIVE: The Equity Pool attempts to provide a return that is superior to a blend of the S&P 500 and the MSCI EAFE over a market cycle.
1 .2
8 .4
Fidelit y Floa t in g Ra t e Hig h In com e
EQUITY POOL
Ba in Ca pit a l Fu n d X
1 2 .0
Ea t on V a n ce Loa n Fu n d
1 .1 T ot a l Ca sh
In v est m en t Wilm in g t on U.S. Gov t MM
Fidu cia r y T r u st
Pr iv a t e Equ it ies
T ot a l Pr iv a t e Equ it ies
% of Pool
Fixed
T ot a l Fixed
Benchmarks for JCF Pools
Fixed In com e Fu n ds
14.0
1 1 .5
St a t e of Isr a el Bon ds
OBJECTIVE: The Money Market Pool invests only in short-term fixed-income securities and seeks to preserve capital.
Asset Allocation
Asset Allocation
Colch est er Globa l In v est or s
1 .3
W illia m Bla ir In t er n a t ion a l T otal International Equities
MONEY MARKET POOL
OBJECTIVE: The Fixed Income Pool invests in short to intermediate term securities and attempts to provide a return that is superior to the Merrill Lynch 1-5 Year Government/Corporate Index over a market cycle.
Fl exibl e Ca pit a l
OBJECTIVE: The Managed Pool attempts to provide a return that is superior to a balanced stock and bond portfolio at a lower volatility over an entire market cycle.
In v est m en t
FIXED INCOME POOL
PORTFOLIO
% Positiv e % Negativ e Quarters Quarters 70 30 85 15 70 30
THE JEWISH COMMUNITY FOUNDATION OF GREATER METROWEST NJ The mission of the Jewish Community Foundation of Greater MetroWest NJ (JCF) is to service the charitable aims and interests of JCF donors by gathering, investing and disbursing charitable funds on their behalf, and encouraging allocation of these monies to enhance and assure the continuity of charitable institutions designated by the donor and approved by the Foundation Board. While JCF offers special encouragement for planned giving and the use of endowments for Federation and its beneficiary agencies, it also welcomes the opportunity to be of service to recognized charities of every kind: religious, educational and secular in content, and regional, national and international in scope. Established in 1949, JCF is one of the 10 largest foundations in the Jewish federation system, with more than $355 million in assets (as of 6/30/13) and nearly $100 million in future commitments.
HISTORICAL PERFORMANCE Period Ending: June 30, 2013 EQUITY 3 Month Pool 1.0% Benchmark 1.4%
YTD 9.1% 10.2%
1 Year 18.9% 19.8%
3 Year 13.5% 15.0%
5 Year 2.4% 3.7%
FIXED 3 Month Pool -0.5% Benchmark -0.8%
YTD 0.1% -0.5%
1 Year 1.7% 0.7%
3 Year 2.4% 2.1%
5 Year 3.8% 3.4%
MANAGED 3 Month Pool 1.2% Benchmark 0.5%
YTD 6.5% 5.8%
1 Year 12.6% 11.9%
3 Year 9.8% 9.9%
5 Year 1.4% 4.0%
Joshua W. Rednik, Executive Director 973.929.3060 | [email protected] Howard J. Rabner, Chief Financial Officer 973.929.3020 | [email protected] 901 Route 10 | P.O. Box 929 Whippany, NJ 07981-0929 www.jcfmetrowest.org | [email protected]
Past performance is not indicative of future results.
Past performance is not indicative of future results.
A Jewish Community Foundation of Greater MetroWest NJ Quarterly • www.jcfmetrowest.org • August 2013 • Page 2
A Jewish Community Foundation of Greater MetroWest NJ Quarterly • www.jcfmetrowest.org • August 2013 • Page 3
MANAGED POOL
Asset Allocation
MANAGED POOL (continued)
% of Pool
A n ch or a g e Pa r t n er s Offsh or e
2 .2
Bla ck st on e Pa r t n er s Offsh or e
7 .4
Da v idson Kem pn er Pa r t n er s Offsh or e
2 .1
Gr een lig h t Ma st er s Offsh or e Pa r t n er s T ot a l Fl exibl e Ca pit a l
Pu bl ic Equ it ies Domes tic Equities Br ow n A dv isor y
5 .5
DSM Ca pit a l Pa r t n er s Hot ch k is & W iley
5 .1 4 .8
Pet er B. Ca n n ell
6 .6
Sou n d Sh or e
7 .3
V a n Ber k om
3 .4 T otal Domes tic Equities
32.7
International Equities Dodg e & Cox In t er n a t ion a l
5 .6
Fidelit y Div er sified In t er n a t ion a l
3 .5
Mon dr ia n Focu sed Em er g in g Ma r k et s
2 .3
Pa r a m et r ic Em er g in g Ma r k et s
5 .5 18.2
T ot a l Pu bl ic Equ it ies
50.9
In v est m en t
2 .3
6 2 .2
Colch est er Globa l In v est or s
1 .9
Ea t on V a n ce Loa n Fu n d
6 .2
St a t e of Isr a el Bon ds T ot a l Fixed In com e Fu n ds
2 .8 76.5
Fidu cia r y T r u st
9 .1 0 .3
Specia l t y Fu n ds
17.5
Bla ck st on e Pa r t n er s Offsh or e
Ca sh W ilm in g t on Gov t MM T ot a l In v est m en t s
1.1 100.0
Asset Allocation
In v est m en t
Ba in Eu r ope Fu n d III
0 .6
Dom est ic Equ it y Ma n a ger s
Com m on fu n d Pr iv a t e Equ it y V I
1 .1
Br ow n A dv isor y
Com m on fu n d Pr iv a t e Equ it y V II Com m on fu n d In t er n a t ion a l V I
1 .3 2 .1
DSM Ca pit a l Pa r t n er s
FLA G Pr iv a t e Equ it y II
0 .9
Goldm a n Sa ch s V in t a g e Fu n d V OS Goldm a n Sa ch s V in t a g e Fu n d V I OS
1 0 .3 LCG 7 .7 LCG
Hot ch k is & W iley Pet er B. Ca n n ell
9 .0 LCV 1 4 .2 A CV
1 .3
Sou n d Sh or e
1 3 .6 LCV
0 .1
V a n Ber k om
8.6
T ot a l Equ it ies
59.5
6 .1
T ot a l Dom est ic Equ it y Ma n a ger s
SCC
In t er n a t ion a l Equ it y Fu n ds Dodg e & Cox In t er n a t ion a l
Natural Res ources
Fidelit y Div er sified In t er n a t ion a l
9 .8 LCB
0 .9 1 .4
Mon dr ia n Focu sed Em er g in g Ma r k et s
5 .0 EMC
Pa r a m et r ic Em er g in g Ma r k et s
2 .9 EMV
2.3
W illia m Bla ir In t er n a t ion a l T ot a l In t er n a t ion a l Equ it y Ma n a ger s
T otal Natural Res ources Real Es tate Bea con Ca pit a l St r a t eg ic Pa r t n er s V I
0 .5
Bla ck st on e Rea l Est a t e Pa r t n er s V
0 .8
Bla ck st on e Rea l Est a t e Pa r t n er s V I
1 .6
Bla ck st on e Rea l Est a t e Pa r t n er s V II
0 .8
Bla ck st on e Ret a il Pr in cipa l Pa r t n er s
0 .3
Ca bot In du st r ia l V a lu e Fu n d III
1 .2
St er lin g A m er ica n Pr oper t y V
0 .4
T otal Real Es tate
5.6
T ot a l In fl a t ion Hedgin g
7.9
For information on the style of equity investments in the Managed Pool, please see the Equity Pool asset allocation.
1 .6
Mer r ill Ly n ch MM
0 .3 1.9
T ot a l Ca sh
1 1 .7 LCV
T ot a l In v est m en t s
T ot a l In v est m en t s
9 .7 MCG 39.1 100.0
Equ it y Pool St y l e Legen d A CV =A l l Ca p V a l u e
LCB=La r ge Ca p Bl en d
LCV =La r ge Ca p V a l u e
LCG=La r ge Ca p Gr owt h
MCG=Mid Ca p Gr owt h
SCC=Sm a l l Ca p Cor e
EMC=Em er gin g Mkt s Cor e EMV =Em er gin g Mkt s V a l u e
All information is up to date as of June 30, 2013
100.0
CHARACTERISTICS (5-YEAR HISTORY) (July 1, 2008 – June 30, 2013) Historical Perform ance – JCF Inv estm ent Pools Annualized Return 2.4% 3.8% 1 .4%
Cum ulativ e Return 1 2.6 20.5 7 .4
% Positiv e % Negativ e Quarters Quarters 65 35 75 25 80 20
Historical Perform ance – JCF Inv estm ent Pool Benchm arks
60.9
In fl a t ion Hedgin g Com m on fu n d Na t u r a l Resou r ces V II Com m on fu n d Na t u r a l Resou r ces V III
W ilm in g t on Gov t MM
Pool Equity Fix ed Managed
Benchm ark Equity Fix ed Managed
Annualized Return 3.7 % 3.4% 4.0%
Cum ulativ e Return 1 9.8 1 8.1 21 .8
1 0 0 .0
Equity: Blend of 60% of the S&P 500 Index + 40% of the MSCI EAFE Index as of April 1, 2013. Blend of 65% & 35% as of March 31, 2013 and prior. Fixed:
Bank of America/Merrill Lynch 1-5 Year U.S. Corporate & Government Bond Index
Managed: Blend of 60% of the Equity Pool benchmark + 40% of the Fixed Pool benchmark
21.6
Ca sh
% of Pool St y l e
% of Pool
1 .2
T ot a l Specia l t y Fu n ds
OBJECTIVE: The Equity Pool attempts to provide a return that is superior to a blend of the S&P 500 and the MSCI EAFE over a market cycle.
1 .2
8 .4
Fidelit y Floa t in g Ra t e Hig h In com e
EQUITY POOL
Ba in Ca pit a l Fu n d X
1 2 .0
Ea t on V a n ce Loa n Fu n d
1 .1 T ot a l Ca sh
In v est m en t Wilm in g t on U.S. Gov t MM
Fidu cia r y T r u st
Pr iv a t e Equ it ies
T ot a l Pr iv a t e Equ it ies
% of Pool
Fixed
T ot a l Fixed
Benchmarks for JCF Pools
Fixed In com e Fu n ds
14.0
1 1 .5
St a t e of Isr a el Bon ds
OBJECTIVE: The Money Market Pool invests only in short-term fixed-income securities and seeks to preserve capital.
Asset Allocation
Asset Allocation
Colch est er Globa l In v est or s
1 .3
W illia m Bla ir In t er n a t ion a l T otal International Equities
MONEY MARKET POOL
OBJECTIVE: The Fixed Income Pool invests in short to intermediate term securities and attempts to provide a return that is superior to the Merrill Lynch 1-5 Year Government/Corporate Index over a market cycle.
Fl exibl e Ca pit a l
OBJECTIVE: The Managed Pool attempts to provide a return that is superior to a balanced stock and bond portfolio at a lower volatility over an entire market cycle.
In v est m en t
FIXED INCOME POOL
PORTFOLIO
% Positiv e % Negativ e Quarters Quarters 70 30 85 15 70 30
THE JEWISH COMMUNITY FOUNDATION OF GREATER METROWEST NJ The mission of the Jewish Community Foundation of Greater MetroWest NJ (JCF) is to service the charitable aims and interests of JCF donors by gathering, investing and disbursing charitable funds on their behalf, and encouraging allocation of these monies to enhance and assure the continuity of charitable institutions designated by the donor and approved by the Foundation Board. While JCF offers special encouragement for planned giving and the use of endowments for Federation and its beneficiary agencies, it also welcomes the opportunity to be of service to recognized charities of every kind: religious, educational and secular in content, and regional, national and international in scope. Established in 1949, JCF is one of the 10 largest foundations in the Jewish federation system, with more than $355 million in assets (as of 6/30/13) and nearly $100 million in future commitments.
HISTORICAL PERFORMANCE Period Ending: June 30, 2013 EQUITY 3 Month Pool 1.0% Benchmark 1.4%
YTD 9.1% 10.2%
1 Year 18.9% 19.8%
3 Year 13.5% 15.0%
5 Year 2.4% 3.7%
FIXED 3 Month Pool -0.5% Benchmark -0.8%
YTD 0.1% -0.5%
1 Year 1.7% 0.7%
3 Year 2.4% 2.1%
5 Year 3.8% 3.4%
MANAGED 3 Month Pool 1.2% Benchmark 0.5%
YTD 6.5% 5.8%
1 Year 12.6% 11.9%
3 Year 9.8% 9.9%
5 Year 1.4% 4.0%
Joshua W. Rednik, Executive Director 973.929.3060 | [email protected] Howard J. Rabner, Chief Financial Officer 973.929.3020 | [email protected] 901 Route 10 | P.O. Box 929 Whippany, NJ 07981-0929 www.jcfmetrowest.org | [email protected]
Past performance is not indicative of future results.
Past performance is not indicative of future results.
A Jewish Community Foundation of Greater MetroWest NJ Quarterly • www.jcfmetrowest.org • August 2013 • Page 2
A Jewish Community Foundation of Greater MetroWest NJ Quarterly • www.jcfmetrowest.org • August 2013 • Page 3
New Fiscal Year, New JCF President Welcoming Scott Krieger “I am very comfortable with my role,” says Scott Krieger, the new president of the Board of Trustees of the Jewish Community Foundation of Greater MetroWest NJ (JCF). “I’m here to spread the word about JCF and how we aid Federation agencies and the interests of our fund holders.” If Scott is making it sound easy to serve as president of the largest community foundation in New Jersey, which also serves as the endowment and planned giving office of Jewish Federation of Greater MetroWest NJ, it could be because he has more than 20 years of experience as a lay leader with Federation. A loyal Super Sunday volunteer, he has also served as UJA campaign chair and treasurer and vice president
of finance. Scott is a former chair of the Young Leadership Division and a recipient of the Julius & Bessie Cohn Young Leadership Award. Since joining the JCF Board four years ago, he has been an active member of the Grant Review Committee. Scott’s leadership will guide both lay leaders and professionals as JCF works to secure deferred gifts for Federation; manage assets under investment (valued at $355 million as of June 30, 2013); advise multigenerational families on philanthropy and family legacies; and support MetroWest Tomorrow, JCF’s endowment campaign to sustain Jewish life via programs that build connection, continuity, and community. Scott is a certified public accountant and a partner with the firm of Friedman LLP. His specialties include real estate entities, not-for-profit associations, and information technology companies. A former board member of the Synagogue of the Suburban Torah Center, Scott is also active with the Friendship Circle of MetroWest NJ. He lives with his wife, Robyn, and three children in Livingston.
To learn more about JCF, your funds under management, or MetroWest Tomorrow, please contact Joshua Rednik, executive director, at (973) 929-3060 or [email protected].
A Jewish Community Foundation of Greater MetroWest NJ Quarterly • www.jcfmetrowest.org • August 2013 • Page 4
MAKING A
Statement August 2013 Dear JCF Fund Holders, Enclosed you will find both the quarterly and full fiscal year-end statements for your Jewish Community Foundation (JCF) Fund. Please note that both statements reflect contribution and distribution activity as well as investment performance through June 30, 2013. Overall, returns in the second quarter were mixed. The S&P 500 Index posted a return of 2.9%, while the 10 year U.S. treasury yield rose 45 bps to end the fiscal year at 4.9%. Although there were strong gains in developed market equities and REITs, uncertainty regarding monetary policy led to volatility and underperformance in many other asset classes. Funds with international holdings were down an average of 2.5% during the quarter. Overall, commodities had a more challenging year, although as in most years, the performance between commodities varied widely. Domestic stocks rallied sharply during the second
quarter, fueled by improved consumer confidence, accommodative policies from the Federal Reserve, rising home prices, and modest improvements in the labor market. As of June 30, 2013, Foundation assets totaled $355 million, up from $352 million on March 31, 2013. For the quarter ending June 30, 2013, the Equity Pool gained 1.0% while its benchmark gained 1.4%. The Fixed Pool ended the quarter down 0.5%, while its benchmark was down 0.8%. Finally, the JCF Managed Pool gained 1.2% while its blended benchmark was up 0.5%. For the 12-month period ending June 30, 2013, the Equity Pool gained 18.9% compared to its benchmark, which gained 19.8%. Over the same period, the Fixed Pool rose 1.7% while its benchmark rose 0.7%. The Managed Pool was up 12.6% for the year, compared to its benchmark, which rose 11.9%. Additional information on the performance and composition of the JCF investment pools is on pages two and three of this newsletter.
We hope you find Making a Statement worthwhile and informative. As always, please contact us with any questions or to get more information. Joshua can be contacted directly at (973) 929-3060 or [email protected]. Regards,
Scott Krieger Joshua W. Rednik President Executive Director
In This Issue Fund Performance
Pgs. 2-3
New Fiscal Year, New JCF President
Pg. 4
A Jewish Community Foundation of Greater MetroWest NJ Quarterly • www.jcfmetrowest.org • August 2013 • Page 1
