February 2015
MAKING A
Statement February 2015 Shevat 5775 Dear JCF Fund Holders,
Dream It. Believe It. Achieve It. JCF is the largest community foundation in NJ. We bring over 65 years of planned giving expertise to the community. We listen to donors who dream of a better world, and together we put those dreams into action. If you dream of helping people for generations to come, we can help. We’re Forward Thinking. We’re the Jewish Community Foundation.
Can we talk? Contact Daniel Staffenberg at (973) 929-3060 or [email protected] >>>follow us
Ensuring A Strong Jewish Future Matters
A Jewish Community Foundation of Greater MetroWest NJ Quarterly • www.jcfmetrowest.org • February 2015 • Page 4
Enclosed please find the quarterly statement for your Fund at the Jewish Community Foundation (JCF). This statement reflects contribution and distribution activity and investment performance from October 1, 2014, through December 31, 2014. In 2014, U.S. equities posted strong calendar-year gains once again, as the S&P 500 Index and Dow Jones reached record levels many times. But a sharp rally in the U.S. dollar (USD) and tumbling oil prices in the fourth quarter were critical factors in the stark contrast between results in the first and second half of the year. The first half also saw the 2-year U.S. Treasury Note rise 8 bps to 0.46%. However, by the end of December it was 0.67%. Conversely, the 2-year German bund, a proxy for European rates, fell 20 bps to 0.03% in the first half and plunged further to 0.11% by year-end. Similarly, the 2-year Japanese Government Bond yield fell 2 bps in the first six months to 0.07%, only to drop to −0.03% by year’s end. These relative yield differentials to the U.S. were additional factors driving the USD rally against other G3 currencies, with the greenback gaining 11.6% against the euro and 15.4% against the yen.
Another impact on capital markets was the sharp decline of crude oil prices, which plummeted 45.9% over the calendar year. Amid this backdrop, the traditional 70% domestic equities (S&P 500 Index)/30% fixed income portfolio (Barclays Aggregate Index) returned 11.4% in 2014. This outperformed the 3.2% return of a broader diversified portfolio mix, which incorporates nonU.S. and emerging market equities, private equity, real assets, hedge funds, and non-U.S. bonds. Here at JCF, total assets were $383 million as of December 31, 2014, down from $385 million on September 30, 2014. For the quarter ending December 31, the Equity Pool was up 1.3% while its benchmark was up 1.5%. The Fixed Pool ended the quarter up 0.2% with its benchmark up 0.4%. The Managed Pool gained 0.6% while its blended benchmark was up 1.1%. In regard to grant-making, in the fourth quarter of 2014 JCF distributed more than $8 million to qualified nonprofit organizations in Greater MetroWest NJ, across the United States, Israel, and overseas. Grants came from Donor Advised Funds, Supporting Foundations, and Advisory Councils, including, but not limited to, the Gottesman Family Foundation, Grotta Fund for Senior Care, and the Jewish Women’s Foundation of NJ. JCF is also in the business of planned (or deferred) gifts, which we like to call “legacy gifts,” to Federation,
synagogues, and agencies in Greater MetroWest. During 2014, JCF’s Create a Jewish Legacy teams — made up of professional and lay leaders from 15 synagogues and agencies in this first cohort— have secured an amazing 130 legacy commitments totaling over $5 million in estimated future value to help ensure a strong Jewish future. Additional information regarding JCF investments can be found on pages two and three of this newsletter. Please contact Daniel Staffenberg, Executive Director, at (973) 929-3060 or [email protected] with any questions or concerns. Thank you. Regards,
Scott Krieger President
Daniel Staffenberg Executive Director
P.S. Are you enjoying Making A Statement? Do you have ideas for future issues or is there anyone we should add to our mailing list? Let us know by contacting Eileen Heltzer at eheltzer@ jfedgmw.org or (973) 929-3039. We’d love to hear from you!
A Jewish Community Foundation of Greater MetroWest NJ Quarterly • www.jcfmetrowest.org • February 2015 • Page 1
PORTFOLIO MANAGED POOL (continued)
MANAGED POOL 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.
Asset Allocation
Investment Public Equities Domestic Equities Brown Advisory DSM Capital Partners Hotchkis & Wiley Sound Shore Van Berkom Total Domestic Equities International Equities Advisory Research Int'l Small Cap Dodge & Cox International Marathon-London Int'l Inv Trust Mondrian Focused Emerging Markets Parametric Emerging Markets Total International Equities Total Public Equities Private Equities Bain Capital Fund X Bain Europe Fund III Commonfund Private Equity VI Commonfund Private Equity VII Commonfund International VI FLAG Private Equity II Goldman Sachs Vintage Fund V OS Goldman Sachs Vintage Fund VI OS Total Private Equities Total Equities Inflation Hedging Natural Resources Commonfund Natural Resources VII Commonfund Natural Resources VIII FLAG Energy Resources III Total Natural Resources Real Estate Beacon Capital Strategic Partners VI Blackstone Real Estate Partners V Blackstone Real Estate Partners VI Blackstone Real Estate Partners VII Blackstone Retail Principal Partners Cabot Industrial Value IV GEM Realty Fund V Sterling American Property V Total Real Estate Total Inflation Hedging
% of Pool
6.9 7.0 6.5 9.5 4.6 34.5 2.8 6.0 5.7 2.9 2.1 19.5 54.0
0.9 0.9 0.7 1.3 1.6 0.7 1.0 0.5 7.6 61.6
0.7 1.4 0.2 2.3 0.4 0.5 1.2 1.2 0.2 0.2 0.3 0.4 4.4 6.7
For information on the style of equity investments in the Managed Pool, please see the Equity Pool asset allocation.
PORTFOLIO
FIXED INCOME POOL Flexible Capital Anchorage Partners Offshore Blackstone Partners Offshore Davidson Kempner Partners Offshore Greenlight Masters Offshore Partners Greenlight Capital Offshore (Gold) Ltd Total Flexible Capital
2.2 7.1 2.0 2.2 1.9 15.4
Fixed Colchester Global Investors Eaton Vance Loan Fund Fiduciary Trust State of Israel Bonds
1.6 5.4 7.7 0.9 15.6
Total Fixed
Cash Wilmington Govt MM
Total Cash Total Investments
OBJECTIVE: The Fixed Income Pool invests in short to intermediate MANAGED POOL term securities and attempts to provide a return that is superior to the OBJECTIVE: The Managed Pool attempts toover provide a Merrill Lynch 1-5 Year Government/Corporate Index an entire return that is superior to a balanced stock and bond market cycle. portfolio at a lower volatility over an entire market cycle.
Asset Allocation Asset Allocation Investment Investment
Sound Shore
0.7 0.7 100.0
EQUITY POOL 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 an entire market cycle.
Asset Allocation
Investment % of Pool Domestic Equity Managers Brown Advisory 12.7 DSM Capital Partners 12.3 Hotchkis & Wiley 12.0 Sound Shore 17.3 Van Berkom 8.8 Total Domestic Equity Managers 63.1 International Equity Funds Advisory Research Int'l Small Cap Dodge & Cox International Marathon-London Int'l Inv Trust Mondrian Focused Emerging Markets Parametric Emerging Markets Total International Equity Managers Total Investments
5.2 11.1 14.3 1.5 4.8 36.9 100.0
Style LCG LCG LCV LCV SCC SCV LCV ACC EMC EMV
Equ it y Pool St y l e Legen d A CC=A ll Ca p Cor e A CV =A ll Ca p V a lu e
LCG=La r ge Ca p Gr owt h LCV =La r ge Ca p V a lu e
EMC=Em er gin g Mk t s Cor e EMV =Em er gin g Mk t s V a l u e LCB=La r ge Ca p Blen d
MCG=Mid Ca p Gr owt h SCC=Sm a ll Ca p Cor e SCV =Sm a l l Ca p V a lu e
All information is up-to-date as of December 31, 2014
Past performance is not indicative of future results. Create PDF files without this message by purchasing novaPDF printer (http://www.novapdf.com)
A Jewish Community Foundation of Greater MetroWest NJ Quarterly • www.jcfmetrowest.org • February 2015 • Page 2
% of Pool
% of Pool
Fixed Income Funds Public Equities Colchester Global Investors Domestic Equities Fiduciary Trust Brown Advisory State of Israel Bonds DSM Capital Partners Total Fixed Income Funds Hotchkis & Wiley
Specialty Funds Van Berkom Blackstone Partners Offshore Total Domestic Equities EatonInternational Vance Loan Fund Equities Fidelity Floating Rate High Advisory Research Int'l Income Small Cap Total Dodge & Cox InternationalSpecialty Funds CashMarathon-London Int'l Inv Trust Wilmington Govt MM Emerging Markets Mondrian Focused Merrill Lynch MM Parametric Emerging Markets Total International Equities Total Cash Public Equities Total Total Investments
13.0 52.9 6.9 5.3 7.0 73.6 6.5
9.5 4.6 14.9 34.5
9.8
2.81.4 26.1 6.0 5.7 2.92.4 2.10.3 19.52.7 54.0 100.0
Private Equities
CHARACTERISTICS (5-YEAR HISTORY) Bain Capital Fund X 0.9
(January 1, 2010 Bain Europe Fund III – December 31, 2014) 0.9 Historical Perform ance – JCF I nv estm en t Pools Commonfund Private Equity VI 0.7 Annu alized Cum ulativ e % Positiv e % Negativ e Commonfund Private Equity VII 1.3 Pool Retu rn Return Quarters Quarters Commonfund International VI 1.625 Equity 10.4% 63.7 75 FLAG Private Equity 0.715 Fixed 2.6% II 13.5 85 Managed 85 Goldman Sachs8.5% Vintage Fund50.5 V OS 1.015 Goldman Sachs Vintage Fund VI OS 0.5 Historical Perform an ce – JCF Inv estm ent Pool Ben ch m arks Total Private Equities 7.6 Annu alized Cum ulativ e % Positiv e % Negativ e Total Equities Benchm ark Retu rn Return Quarters 61.6 Quarters Equity 11 .2% 7 0.4 80 20 Inflation Hedging Fixed 2.3% 12.0 85 15 Natural Resources Managed 7 .8% 45.8 80 20 Commonfund Natural Resources VII 0.7 Commonfund Natural Resources VIII 1.4 FLAG Energy Resources III 0.2 Natural Resources (Net of2.3 HISTORICALTotal PERFORMANCE Fees) Real Estate Ending: December 31, 2014 Period Beacon Capital Strategic Partners 0.4 EQUITY 3 Month 1 YearVI 3 Year 5 Year Pool 1.3% 4.5%V 16.3% 10.4% Blackstone Real Estate Partners 0.5 Blackstone Real Estate Partners 1.2 Benchmark 1.5% 5.9%VI 16.8% 11.2% Blackstone Real Estate Partners VII 1.2 Blackstone Retail Principal1Partners 0.2 FIXED 3 Month Year 3 Year 5 Year Cabot Industrial Value IV 0.2 Pool 0.2% 1.7% 2.0% 2.6% GEM Realty Fund V 0.3 Benchmark 0.4% 1.5% 1.4% 2.3% Sterling American Property V 0.4 Total Real Estate 4.4 MANAGED 3 Month 1 Year 3 Year 5 Year Total Inflation Hedging 6.7 Pool 0.6% 5.6% 11.8% 8.5% Benchmark 1.1% 10.5%in the 7.8% For information on the style of4.2% equity investments Managed Pool, please see the Equity Pool asset allocation.
MONEY MARKET POOL
MANAGED POOL OBJECTIVE: The Money Market Pool (continued) invests only in short-term fixed-income securities and seeks to preserve Flexible Capital capital. Anchorage Partners Offshore for JCF Pools 2.2 Benchmarks
Blackstone Partners Offshore 7.1 Davidson Kempner Partners Offshore 2.0 Greenlight Masters Offshore Partners 2.2 Greenlight Capital Offshore (Gold) Ltd 1.9 Total Flexible Capital 15.4 Equity: Blend of 60% of the S&P 500 Index + 40% of the MSCI EAFE Index as of April 1, 2013 Fixed Fixed: Bank ofGlobal America/Merrill Colchester Investors Lynch 1-5 Year U.S. 1.6 Corporate & Government Bond Index Eaton Vance Loan Fund 5.4 Managed: 60% of the Equity Pool benchmark + 40% of the Fiduciary Trust 7.7 PoolBonds benchmark StateFixed of Israel 0.9 Total Fixed 15.6 Cash THE Govt JEWISH COMMUNITY Wilmington MM 0.7 FOUNDATION TotalOF Cash 0.7 GREATER METROWEST NJ 100.0 Total Investments
The mission of the Jewish Community Foundation EQUITY POOL of Greater MetroWest NJ (JCF) is to service the charitable aims and interests of JCF donors by OBJECTIVE: The Equity Pool attempts to provide a return that is gathering, and superior to ainvesting blend of the S&Pdisbursing 500 and thecharitable MSCI EAFE funds over an entire market cycle. and encouraging allocation of these on their behalf, monies to enhance and assure the continuity of charitable institutions designated by the donor and Asset Allocation approved by the Foundation Board. While JCF Investment of Pool offers special encouragement for planned % giving andStyle Domestic Managers the useEquity of endowments for Federation and its Brown Advisory agencies, it also welcomes 12.7 beneficiary theLCG DSM Capital Partners 12.3 LCG opportunity to be of service to recognized charities of every kind: religious, educational and secular Hotchkis & Wiley 12.0inLCV content, Sound Shoreand regional, national and international 17.3inLCV scope. Established in 1949, JCF is one of the largest Van Berkom 8.8 SCC foundations inDomestic the Jewish federation system,63.1 with Total Equity Managers $383 million in assets (as of 12/31/14) and more than $100 million in future commitments. International Equity Funds Advisory Research Int'l Small Cap 5.2 Dodge & Cox International 11.1 Marathon-London Int'l Inv Trust 14.3 Mondrian Focused Emerging Markets 1.5 Parametric Emerging Markets 4.8 Total International Equity Managers 36.9 Total Investments 100.0 Daniel Staffenberg, Executive Director 973.929.3060 [email protected] Equ it y|Pool St y l e Legen d A CC=A ll Ca p Cor e
SCV LCV ACC EMC EMV
LCG=La r ge Ca p Gr owt h
Howard J. Rabner, Chief Financial Officer LCV =La r ge Ca p V a lu e 973.929.3020 | [email protected]
A CV =A ll Ca p V a lu e
EMC=Em er gin g Mk t s Cor e
MCG=Mid Ca p Gr owt h
EMV =Em er gin g 901 Mk tRoute s V alue SCC=Sm a ll Ca p Cor e 10 | P.O. Box 929 NJ 07981-0929 LCB=La r ge CaWhippany, p Blen d SCV =Sm a l l Ca p V a lu e
973.929.3113
www.jcfmetrowest.org | [email protected] All information is up-to-date as of December 31, 2014
Past performance is not indicative of future results. Past performance is not indicative of future results.
Create PDF files without this message by purchasing novaPDF printer (http://www.novapdf.com) Create PDF files without this message by purchasing novaPDF printer (http://www.novapdf.com)
A Jewish Community Foundation of Greater MetroWest NJ Quarterly • www.jcfmetrowest.org • February 2015 • Page 3
PORTFOLIO MANAGED POOL (continued)
MANAGED POOL 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.
Asset Allocation
Investment Public Equities Domestic Equities Brown Advisory DSM Capital Partners Hotchkis & Wiley Sound Shore Van Berkom Total Domestic Equities International Equities Advisory Research Int'l Small Cap Dodge & Cox International Marathon-London Int'l Inv Trust Mondrian Focused Emerging Markets Parametric Emerging Markets Total International Equities Total Public Equities Private Equities Bain Capital Fund X Bain Europe Fund III Commonfund Private Equity VI Commonfund Private Equity VII Commonfund International VI FLAG Private Equity II Goldman Sachs Vintage Fund V OS Goldman Sachs Vintage Fund VI OS Total Private Equities Total Equities Inflation Hedging Natural Resources Commonfund Natural Resources VII Commonfund Natural Resources VIII FLAG Energy Resources III Total Natural Resources Real Estate Beacon Capital Strategic Partners VI Blackstone Real Estate Partners V Blackstone Real Estate Partners VI Blackstone Real Estate Partners VII Blackstone Retail Principal Partners Cabot Industrial Value IV GEM Realty Fund V Sterling American Property V Total Real Estate Total Inflation Hedging
% of Pool
6.9 7.0 6.5 9.5 4.6 34.5 2.8 6.0 5.7 2.9 2.1 19.5 54.0
0.9 0.9 0.7 1.3 1.6 0.7 1.0 0.5 7.6 61.6
0.7 1.4 0.2 2.3 0.4 0.5 1.2 1.2 0.2 0.2 0.3 0.4 4.4 6.7
For information on the style of equity investments in the Managed Pool, please see the Equity Pool asset allocation.
PORTFOLIO
FIXED INCOME POOL Flexible Capital Anchorage Partners Offshore Blackstone Partners Offshore Davidson Kempner Partners Offshore Greenlight Masters Offshore Partners Greenlight Capital Offshore (Gold) Ltd Total Flexible Capital
2.2 7.1 2.0 2.2 1.9 15.4
Fixed Colchester Global Investors Eaton Vance Loan Fund Fiduciary Trust State of Israel Bonds
1.6 5.4 7.7 0.9 15.6
Total Fixed
Cash Wilmington Govt MM
Total Cash Total Investments
OBJECTIVE: The Fixed Income Pool invests in short to intermediate MANAGED POOL term securities and attempts to provide a return that is superior to the OBJECTIVE: The Managed Pool attempts toover provide a Merrill Lynch 1-5 Year Government/Corporate Index an entire return that is superior to a balanced stock and bond market cycle. portfolio at a lower volatility over an entire market cycle.
Asset Allocation Asset Allocation Investment Investment
Sound Shore
0.7 0.7 100.0
EQUITY POOL 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 an entire market cycle.
Asset Allocation
Investment % of Pool Domestic Equity Managers Brown Advisory 12.7 DSM Capital Partners 12.3 Hotchkis & Wiley 12.0 Sound Shore 17.3 Van Berkom 8.8 Total Domestic Equity Managers 63.1 International Equity Funds Advisory Research Int'l Small Cap Dodge & Cox International Marathon-London Int'l Inv Trust Mondrian Focused Emerging Markets Parametric Emerging Markets Total International Equity Managers Total Investments
5.2 11.1 14.3 1.5 4.8 36.9 100.0
Style LCG LCG LCV LCV SCC SCV LCV ACC EMC EMV
Equ it y Pool St y l e Legen d A CC=A ll Ca p Cor e A CV =A ll Ca p V a lu e
LCG=La r ge Ca p Gr owt h LCV =La r ge Ca p V a lu e
EMC=Em er gin g Mk t s Cor e EMV =Em er gin g Mk t s V a l u e LCB=La r ge Ca p Blen d
MCG=Mid Ca p Gr owt h SCC=Sm a ll Ca p Cor e SCV =Sm a l l Ca p V a lu e
All information is up-to-date as of December 31, 2014
Past performance is not indicative of future results. Create PDF files without this message by purchasing novaPDF printer (http://www.novapdf.com)
A Jewish Community Foundation of Greater MetroWest NJ Quarterly • www.jcfmetrowest.org • February 2015 • Page 2
% of Pool
% of Pool
Fixed Income Funds Public Equities Colchester Global Investors Domestic Equities Fiduciary Trust Brown Advisory State of Israel Bonds DSM Capital Partners Total Fixed Income Funds Hotchkis & Wiley
Specialty Funds Van Berkom Blackstone Partners Offshore Total Domestic Equities EatonInternational Vance Loan Fund Equities Fidelity Floating Rate High Advisory Research Int'l Income Small Cap Total Dodge & Cox InternationalSpecialty Funds CashMarathon-London Int'l Inv Trust Wilmington Govt MM Emerging Markets Mondrian Focused Merrill Lynch MM Parametric Emerging Markets Total International Equities Total Cash Public Equities Total Total Investments
13.0 52.9 6.9 5.3 7.0 73.6 6.5
9.5 4.6 14.9 34.5
9.8
2.81.4 26.1 6.0 5.7 2.92.4 2.10.3 19.52.7 54.0 100.0
Private Equities
CHARACTERISTICS (5-YEAR HISTORY) Bain Capital Fund X 0.9
(January 1, 2010 Bain Europe Fund III – December 31, 2014) 0.9 Historical Perform ance – JCF I nv estm en t Pools Commonfund Private Equity VI 0.7 Annu alized Cum ulativ e % Positiv e % Negativ e Commonfund Private Equity VII 1.3 Pool Retu rn Return Quarters Quarters Commonfund International VI 1.625 Equity 10.4% 63.7 75 FLAG Private Equity 0.715 Fixed 2.6% II 13.5 85 Managed 85 Goldman Sachs8.5% Vintage Fund50.5 V OS 1.015 Goldman Sachs Vintage Fund VI OS 0.5 Historical Perform an ce – JCF Inv estm ent Pool Ben ch m arks Total Private Equities 7.6 Annu alized Cum ulativ e % Positiv e % Negativ e Total Equities Benchm ark Retu rn Return Quarters 61.6 Quarters Equity 11 .2% 7 0.4 80 20 Inflation Hedging Fixed 2.3% 12.0 85 15 Natural Resources Managed 7 .8% 45.8 80 20 Commonfund Natural Resources VII 0.7 Commonfund Natural Resources VIII 1.4 FLAG Energy Resources III 0.2 Natural Resources (Net of2.3 HISTORICALTotal PERFORMANCE Fees) Real Estate Ending: December 31, 2014 Period Beacon Capital Strategic Partners 0.4 EQUITY 3 Month 1 YearVI 3 Year 5 Year Pool 1.3% 4.5%V 16.3% 10.4% Blackstone Real Estate Partners 0.5 Blackstone Real Estate Partners 1.2 Benchmark 1.5% 5.9%VI 16.8% 11.2% Blackstone Real Estate Partners VII 1.2 Blackstone Retail Principal1Partners 0.2 FIXED 3 Month Year 3 Year 5 Year Cabot Industrial Value IV 0.2 Pool 0.2% 1.7% 2.0% 2.6% GEM Realty Fund V 0.3 Benchmark 0.4% 1.5% 1.4% 2.3% Sterling American Property V 0.4 Total Real Estate 4.4 MANAGED 3 Month 1 Year 3 Year 5 Year Total Inflation Hedging 6.7 Pool 0.6% 5.6% 11.8% 8.5% Benchmark 1.1% 10.5%in the 7.8% For information on the style of4.2% equity investments Managed Pool, please see the Equity Pool asset allocation.
MONEY MARKET POOL
MANAGED POOL OBJECTIVE: The Money Market Pool (continued) invests only in short-term fixed-income securities and seeks to preserve Flexible Capital capital. Anchorage Partners Offshore for JCF Pools 2.2 Benchmarks
Blackstone Partners Offshore 7.1 Davidson Kempner Partners Offshore 2.0 Greenlight Masters Offshore Partners 2.2 Greenlight Capital Offshore (Gold) Ltd 1.9 Total Flexible Capital 15.4 Equity: Blend of 60% of the S&P 500 Index + 40% of the MSCI EAFE Index as of April 1, 2013 Fixed Fixed: Bank ofGlobal America/Merrill Colchester Investors Lynch 1-5 Year U.S. 1.6 Corporate & Government Bond Index Eaton Vance Loan Fund 5.4 Managed: 60% of the Equity Pool benchmark + 40% of the Fiduciary Trust 7.7 PoolBonds benchmark StateFixed of Israel 0.9 Total Fixed 15.6 Cash THE Govt JEWISH COMMUNITY Wilmington MM 0.7 FOUNDATION TotalOF Cash 0.7 GREATER METROWEST NJ 100.0 Total Investments
The mission of the Jewish Community Foundation EQUITY POOL of Greater MetroWest NJ (JCF) is to service the charitable aims and interests of JCF donors by OBJECTIVE: The Equity Pool attempts to provide a return that is gathering, and superior to ainvesting blend of the S&Pdisbursing 500 and thecharitable MSCI EAFE funds over an entire market cycle. and encouraging allocation of these on their behalf, monies to enhance and assure the continuity of charitable institutions designated by the donor and Asset Allocation approved by the Foundation Board. While JCF Investment of Pool offers special encouragement for planned % giving andStyle Domestic Managers the useEquity of endowments for Federation and its Brown Advisory agencies, it also welcomes 12.7 beneficiary theLCG DSM Capital Partners 12.3 LCG opportunity to be of service to recognized charities of every kind: religious, educational and secular Hotchkis & Wiley 12.0inLCV content, Sound Shoreand regional, national and international 17.3inLCV scope. Established in 1949, JCF is one of the largest Van Berkom 8.8 SCC foundations inDomestic the Jewish federation system,63.1 with Total Equity Managers $383 million in assets (as of 12/31/14) and more than $100 million in future commitments. International Equity Funds Advisory Research Int'l Small Cap 5.2 Dodge & Cox International 11.1 Marathon-London Int'l Inv Trust 14.3 Mondrian Focused Emerging Markets 1.5 Parametric Emerging Markets 4.8 Total International Equity Managers 36.9 Total Investments 100.0 Daniel Staffenberg, Executive Director 973.929.3060 [email protected] Equ it y|Pool St y l e Legen d A CC=A ll Ca p Cor e
SCV LCV ACC EMC EMV
LCG=La r ge Ca p Gr owt h
Howard J. Rabner, Chief Financial Officer LCV =La r ge Ca p V a lu e 973.929.3020 | [email protected]
A CV =A ll Ca p V a lu e
EMC=Em er gin g Mk t s Cor e
MCG=Mid Ca p Gr owt h
EMV =Em er gin g 901 Mk tRoute s V alue SCC=Sm a ll Ca p Cor e 10 | P.O. Box 929 NJ 07981-0929 LCB=La r ge CaWhippany, p Blen d SCV =Sm a l l Ca p V a lu e
973.929.3113
www.jcfmetrowest.org | [email protected] All information is up-to-date as of December 31, 2014
Past performance is not indicative of future results. Past performance is not indicative of future results.
Create PDF files without this message by purchasing novaPDF printer (http://www.novapdf.com) Create PDF files without this message by purchasing novaPDF printer (http://www.novapdf.com)
A Jewish Community Foundation of Greater MetroWest NJ Quarterly • www.jcfmetrowest.org • February 2015 • Page 3
MAKING A
Statement February 2015 Shevat 5775 Dear JCF Fund Holders,
Dream It. Believe It. Achieve It. JCF is the largest community foundation in NJ. We bring over 65 years of planned giving expertise to the community. We listen to donors who dream of a better world, and together we put those dreams into action. If you dream of helping people for generations to come, we can help. We’re Forward Thinking. We’re the Jewish Community Foundation.
Can we talk? Contact Daniel Staffenberg at (973) 929-3060 or [email protected] >>>follow us
Ensuring A Strong Jewish Future Matters
A Jewish Community Foundation of Greater MetroWest NJ Quarterly • www.jcfmetrowest.org • February 2015 • Page 4
Enclosed please find the quarterly statement for your Fund at the Jewish Community Foundation (JCF). This statement reflects contribution and distribution activity and investment performance from October 1, 2014, through December 31, 2014. In 2014, U.S. equities posted strong calendar-year gains once again, as the S&P 500 Index and Dow Jones reached record levels many times. But a sharp rally in the U.S. dollar (USD) and tumbling oil prices in the fourth quarter were critical factors in the stark contrast between results in the first and second half of the year. The first half also saw the 2-year U.S. Treasury Note rise 8 bps to 0.46%. However, by the end of December it was 0.67%. Conversely, the 2-year German bund, a proxy for European rates, fell 20 bps to 0.03% in the first half and plunged further to 0.11% by year-end. Similarly, the 2-year Japanese Government Bond yield fell 2 bps in the first six months to 0.07%, only to drop to −0.03% by year’s end. These relative yield differentials to the U.S. were additional factors driving the USD rally against other G3 currencies, with the greenback gaining 11.6% against the euro and 15.4% against the yen.
Another impact on capital markets was the sharp decline of crude oil prices, which plummeted 45.9% over the calendar year. Amid this backdrop, the traditional 70% domestic equities (S&P 500 Index)/30% fixed income portfolio (Barclays Aggregate Index) returned 11.4% in 2014. This outperformed the 3.2% return of a broader diversified portfolio mix, which incorporates nonU.S. and emerging market equities, private equity, real assets, hedge funds, and non-U.S. bonds. Here at JCF, total assets were $383 million as of December 31, 2014, down from $385 million on September 30, 2014. For the quarter ending December 31, the Equity Pool was up 1.3% while its benchmark was up 1.5%. The Fixed Pool ended the quarter up 0.2% with its benchmark up 0.4%. The Managed Pool gained 0.6% while its blended benchmark was up 1.1%. In regard to grant-making, in the fourth quarter of 2014 JCF distributed more than $8 million to qualified nonprofit organizations in Greater MetroWest NJ, across the United States, Israel, and overseas. Grants came from Donor Advised Funds, Supporting Foundations, and Advisory Councils, including, but not limited to, the Gottesman Family Foundation, Grotta Fund for Senior Care, and the Jewish Women’s Foundation of NJ. JCF is also in the business of planned (or deferred) gifts, which we like to call “legacy gifts,” to Federation,
synagogues, and agencies in Greater MetroWest. During 2014, JCF’s Create a Jewish Legacy teams — made up of professional and lay leaders from 15 synagogues and agencies in this first cohort— have secured an amazing 130 legacy commitments totaling over $5 million in estimated future value to help ensure a strong Jewish future. Additional information regarding JCF investments can be found on pages two and three of this newsletter. Please contact Daniel Staffenberg, Executive Director, at (973) 929-3060 or [email protected] with any questions or concerns. Thank you. Regards,
Scott Krieger President
Daniel Staffenberg Executive Director
P.S. Are you enjoying Making A Statement? Do you have ideas for future issues or is there anyone we should add to our mailing list? Let us know by contacting Eileen Heltzer at eheltzer@ jfedgmw.org or (973) 929-3039. We’d love to hear from you!
A Jewish Community Foundation of Greater MetroWest NJ Quarterly • www.jcfmetrowest.org • February 2015 • Page 1
Statement February 2015 Shevat 5775 Dear JCF Fund Holders,
Dream It. Believe It. Achieve It. JCF is the largest community foundation in NJ. We bring over 65 years of planned giving expertise to the community. We listen to donors who dream of a better world, and together we put those dreams into action. If you dream of helping people for generations to come, we can help. We’re Forward Thinking. We’re the Jewish Community Foundation.
Can we talk? Contact Daniel Staffenberg at (973) 929-3060 or [email protected] >>>follow us
Ensuring A Strong Jewish Future Matters
A Jewish Community Foundation of Greater MetroWest NJ Quarterly • www.jcfmetrowest.org • February 2015 • Page 4
Enclosed please find the quarterly statement for your Fund at the Jewish Community Foundation (JCF). This statement reflects contribution and distribution activity and investment performance from October 1, 2014, through December 31, 2014. In 2014, U.S. equities posted strong calendar-year gains once again, as the S&P 500 Index and Dow Jones reached record levels many times. But a sharp rally in the U.S. dollar (USD) and tumbling oil prices in the fourth quarter were critical factors in the stark contrast between results in the first and second half of the year. The first half also saw the 2-year U.S. Treasury Note rise 8 bps to 0.46%. However, by the end of December it was 0.67%. Conversely, the 2-year German bund, a proxy for European rates, fell 20 bps to 0.03% in the first half and plunged further to 0.11% by year-end. Similarly, the 2-year Japanese Government Bond yield fell 2 bps in the first six months to 0.07%, only to drop to −0.03% by year’s end. These relative yield differentials to the U.S. were additional factors driving the USD rally against other G3 currencies, with the greenback gaining 11.6% against the euro and 15.4% against the yen.
Another impact on capital markets was the sharp decline of crude oil prices, which plummeted 45.9% over the calendar year. Amid this backdrop, the traditional 70% domestic equities (S&P 500 Index)/30% fixed income portfolio (Barclays Aggregate Index) returned 11.4% in 2014. This outperformed the 3.2% return of a broader diversified portfolio mix, which incorporates nonU.S. and emerging market equities, private equity, real assets, hedge funds, and non-U.S. bonds. Here at JCF, total assets were $383 million as of December 31, 2014, down from $385 million on September 30, 2014. For the quarter ending December 31, the Equity Pool was up 1.3% while its benchmark was up 1.5%. The Fixed Pool ended the quarter up 0.2% with its benchmark up 0.4%. The Managed Pool gained 0.6% while its blended benchmark was up 1.1%. In regard to grant-making, in the fourth quarter of 2014 JCF distributed more than $8 million to qualified nonprofit organizations in Greater MetroWest NJ, across the United States, Israel, and overseas. Grants came from Donor Advised Funds, Supporting Foundations, and Advisory Councils, including, but not limited to, the Gottesman Family Foundation, Grotta Fund for Senior Care, and the Jewish Women’s Foundation of NJ. JCF is also in the business of planned (or deferred) gifts, which we like to call “legacy gifts,” to Federation,
synagogues, and agencies in Greater MetroWest. During 2014, JCF’s Create a Jewish Legacy teams — made up of professional and lay leaders from 15 synagogues and agencies in this first cohort— have secured an amazing 130 legacy commitments totaling over $5 million in estimated future value to help ensure a strong Jewish future. Additional information regarding JCF investments can be found on pages two and three of this newsletter. Please contact Daniel Staffenberg, Executive Director, at (973) 929-3060 or [email protected] with any questions or concerns. Thank you. Regards,
Scott Krieger President
Daniel Staffenberg Executive Director
P.S. Are you enjoying Making A Statement? Do you have ideas for future issues or is there anyone we should add to our mailing list? Let us know by contacting Eileen Heltzer at eheltzer@ jfedgmw.org or (973) 929-3039. We’d love to hear from you!
A Jewish Community Foundation of Greater MetroWest NJ Quarterly • www.jcfmetrowest.org • February 2015 • Page 1
PORTFOLIO MANAGED POOL (continued)
MANAGED POOL 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.
Asset Allocation
Investment Public Equities Domestic Equities Brown Advisory DSM Capital Partners Hotchkis & Wiley Sound Shore Van Berkom Total Domestic Equities International Equities Advisory Research Int'l Small Cap Dodge & Cox International Marathon-London Int'l Inv Trust Mondrian Focused Emerging Markets Parametric Emerging Markets Total International Equities Total Public Equities Private Equities Bain Capital Fund X Bain Europe Fund III Commonfund Private Equity VI Commonfund Private Equity VII Commonfund International VI FLAG Private Equity II Goldman Sachs Vintage Fund V OS Goldman Sachs Vintage Fund VI OS Total Private Equities Total Equities Inflation Hedging Natural Resources Commonfund Natural Resources VII Commonfund Natural Resources VIII FLAG Energy Resources III Total Natural Resources Real Estate Beacon Capital Strategic Partners VI Blackstone Real Estate Partners V Blackstone Real Estate Partners VI Blackstone Real Estate Partners VII Blackstone Retail Principal Partners Cabot Industrial Value IV GEM Realty Fund V Sterling American Property V Total Real Estate Total Inflation Hedging
% of Pool
6.9 7.0 6.5 9.5 4.6 34.5 2.8 6.0 5.7 2.9 2.1 19.5 54.0
0.9 0.9 0.7 1.3 1.6 0.7 1.0 0.5 7.6 61.6
0.7 1.4 0.2 2.3 0.4 0.5 1.2 1.2 0.2 0.2 0.3 0.4 4.4 6.7
For information on the style of equity investments in the Managed Pool, please see the Equity Pool asset allocation.
PORTFOLIO
FIXED INCOME POOL Flexible Capital Anchorage Partners Offshore Blackstone Partners Offshore Davidson Kempner Partners Offshore Greenlight Masters Offshore Partners Greenlight Capital Offshore (Gold) Ltd Total Flexible Capital
2.2 7.1 2.0 2.2 1.9 15.4
Fixed Colchester Global Investors Eaton Vance Loan Fund Fiduciary Trust State of Israel Bonds
1.6 5.4 7.7 0.9 15.6
Total Fixed
Cash Wilmington Govt MM
Total Cash Total Investments
OBJECTIVE: The Fixed Income Pool invests in short to intermediate MANAGED POOL term securities and attempts to provide a return that is superior to the OBJECTIVE: The Managed Pool attempts toover provide a Merrill Lynch 1-5 Year Government/Corporate Index an entire return that is superior to a balanced stock and bond market cycle. portfolio at a lower volatility over an entire market cycle.
Asset Allocation Asset Allocation Investment Investment
Sound Shore
0.7 0.7 100.0
EQUITY POOL 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 an entire market cycle.
Asset Allocation
Investment % of Pool Domestic Equity Managers Brown Advisory 12.7 DSM Capital Partners 12.3 Hotchkis & Wiley 12.0 Sound Shore 17.3 Van Berkom 8.8 Total Domestic Equity Managers 63.1 International Equity Funds Advisory Research Int'l Small Cap Dodge & Cox International Marathon-London Int'l Inv Trust Mondrian Focused Emerging Markets Parametric Emerging Markets Total International Equity Managers Total Investments
5.2 11.1 14.3 1.5 4.8 36.9 100.0
Style LCG LCG LCV LCV SCC SCV LCV ACC EMC EMV
Equ it y Pool St y l e Legen d A CC=A ll Ca p Cor e A CV =A ll Ca p V a lu e
LCG=La r ge Ca p Gr owt h LCV =La r ge Ca p V a lu e
EMC=Em er gin g Mk t s Cor e EMV =Em er gin g Mk t s V a l u e LCB=La r ge Ca p Blen d
MCG=Mid Ca p Gr owt h SCC=Sm a ll Ca p Cor e SCV =Sm a l l Ca p V a lu e
All information is up-to-date as of December 31, 2014
Past performance is not indicative of future results. Create PDF files without this message by purchasing novaPDF printer (http://www.novapdf.com)
A Jewish Community Foundation of Greater MetroWest NJ Quarterly • www.jcfmetrowest.org • February 2015 • Page 2
% of Pool
% of Pool
Fixed Income Funds Public Equities Colchester Global Investors Domestic Equities Fiduciary Trust Brown Advisory State of Israel Bonds DSM Capital Partners Total Fixed Income Funds Hotchkis & Wiley
Specialty Funds Van Berkom Blackstone Partners Offshore Total Domestic Equities EatonInternational Vance Loan Fund Equities Fidelity Floating Rate High Advisory Research Int'l Income Small Cap Total Dodge & Cox InternationalSpecialty Funds CashMarathon-London Int'l Inv Trust Wilmington Govt MM Emerging Markets Mondrian Focused Merrill Lynch MM Parametric Emerging Markets Total International Equities Total Cash Public Equities Total Total Investments
13.0 52.9 6.9 5.3 7.0 73.6 6.5
9.5 4.6 14.9 34.5
9.8
2.81.4 26.1 6.0 5.7 2.92.4 2.10.3 19.52.7 54.0 100.0
Private Equities
CHARACTERISTICS (5-YEAR HISTORY) Bain Capital Fund X 0.9
(January 1, 2010 Bain Europe Fund III – December 31, 2014) 0.9 Historical Perform ance – JCF I nv estm en t Pools Commonfund Private Equity VI 0.7 Annu alized Cum ulativ e % Positiv e % Negativ e Commonfund Private Equity VII 1.3 Pool Retu rn Return Quarters Quarters Commonfund International VI 1.625 Equity 10.4% 63.7 75 FLAG Private Equity 0.715 Fixed 2.6% II 13.5 85 Managed 85 Goldman Sachs8.5% Vintage Fund50.5 V OS 1.015 Goldman Sachs Vintage Fund VI OS 0.5 Historical Perform an ce – JCF Inv estm ent Pool Ben ch m arks Total Private Equities 7.6 Annu alized Cum ulativ e % Positiv e % Negativ e Total Equities Benchm ark Retu rn Return Quarters 61.6 Quarters Equity 11 .2% 7 0.4 80 20 Inflation Hedging Fixed 2.3% 12.0 85 15 Natural Resources Managed 7 .8% 45.8 80 20 Commonfund Natural Resources VII 0.7 Commonfund Natural Resources VIII 1.4 FLAG Energy Resources III 0.2 Natural Resources (Net of2.3 HISTORICALTotal PERFORMANCE Fees) Real Estate Ending: December 31, 2014 Period Beacon Capital Strategic Partners 0.4 EQUITY 3 Month 1 YearVI 3 Year 5 Year Pool 1.3% 4.5%V 16.3% 10.4% Blackstone Real Estate Partners 0.5 Blackstone Real Estate Partners 1.2 Benchmark 1.5% 5.9%VI 16.8% 11.2% Blackstone Real Estate Partners VII 1.2 Blackstone Retail Principal1Partners 0.2 FIXED 3 Month Year 3 Year 5 Year Cabot Industrial Value IV 0.2 Pool 0.2% 1.7% 2.0% 2.6% GEM Realty Fund V 0.3 Benchmark 0.4% 1.5% 1.4% 2.3% Sterling American Property V 0.4 Total Real Estate 4.4 MANAGED 3 Month 1 Year 3 Year 5 Year Total Inflation Hedging 6.7 Pool 0.6% 5.6% 11.8% 8.5% Benchmark 1.1% 10.5%in the 7.8% For information on the style of4.2% equity investments Managed Pool, please see the Equity Pool asset allocation.
MONEY MARKET POOL
MANAGED POOL OBJECTIVE: The Money Market Pool (continued) invests only in short-term fixed-income securities and seeks to preserve Flexible Capital capital. Anchorage Partners Offshore for JCF Pools 2.2 Benchmarks
Blackstone Partners Offshore 7.1 Davidson Kempner Partners Offshore 2.0 Greenlight Masters Offshore Partners 2.2 Greenlight Capital Offshore (Gold) Ltd 1.9 Total Flexible Capital 15.4 Equity: Blend of 60% of the S&P 500 Index + 40% of the MSCI EAFE Index as of April 1, 2013 Fixed Fixed: Bank ofGlobal America/Merrill Colchester Investors Lynch 1-5 Year U.S. 1.6 Corporate & Government Bond Index Eaton Vance Loan Fund 5.4 Managed: 60% of the Equity Pool benchmark + 40% of the Fiduciary Trust 7.7 PoolBonds benchmark StateFixed of Israel 0.9 Total Fixed 15.6 Cash THE Govt JEWISH COMMUNITY Wilmington MM 0.7 FOUNDATION TotalOF Cash 0.7 GREATER METROWEST NJ 100.0 Total Investments
The mission of the Jewish Community Foundation EQUITY POOL of Greater MetroWest NJ (JCF) is to service the charitable aims and interests of JCF donors by OBJECTIVE: The Equity Pool attempts to provide a return that is gathering, and superior to ainvesting blend of the S&Pdisbursing 500 and thecharitable MSCI EAFE funds over an entire market cycle. and encouraging allocation of these on their behalf, monies to enhance and assure the continuity of charitable institutions designated by the donor and Asset Allocation approved by the Foundation Board. While JCF Investment of Pool offers special encouragement for planned % giving andStyle Domestic Managers the useEquity of endowments for Federation and its Brown Advisory agencies, it also welcomes 12.7 beneficiary theLCG DSM Capital Partners 12.3 LCG opportunity to be of service to recognized charities of every kind: religious, educational and secular Hotchkis & Wiley 12.0inLCV content, Sound Shoreand regional, national and international 17.3inLCV scope. Established in 1949, JCF is one of the largest Van Berkom 8.8 SCC foundations inDomestic the Jewish federation system,63.1 with Total Equity Managers $383 million in assets (as of 12/31/14) and more than $100 million in future commitments. International Equity Funds Advisory Research Int'l Small Cap 5.2 Dodge & Cox International 11.1 Marathon-London Int'l Inv Trust 14.3 Mondrian Focused Emerging Markets 1.5 Parametric Emerging Markets 4.8 Total International Equity Managers 36.9 Total Investments 100.0 Daniel Staffenberg, Executive Director 973.929.3060 [email protected] Equ it y|Pool St y l e Legen d A CC=A ll Ca p Cor e
SCV LCV ACC EMC EMV
LCG=La r ge Ca p Gr owt h
Howard J. Rabner, Chief Financial Officer LCV =La r ge Ca p V a lu e 973.929.3020 | [email protected]
A CV =A ll Ca p V a lu e
EMC=Em er gin g Mk t s Cor e
MCG=Mid Ca p Gr owt h
EMV =Em er gin g 901 Mk tRoute s V alue SCC=Sm a ll Ca p Cor e 10 | P.O. Box 929 NJ 07981-0929 LCB=La r ge CaWhippany, p Blen d SCV =Sm a l l Ca p V a lu e
973.929.3113
www.jcfmetrowest.org | [email protected] All information is up-to-date as of December 31, 2014
Past performance is not indicative of future results. Past performance is not indicative of future results.
Create PDF files without this message by purchasing novaPDF printer (http://www.novapdf.com) Create PDF files without this message by purchasing novaPDF printer (http://www.novapdf.com)
A Jewish Community Foundation of Greater MetroWest NJ Quarterly • www.jcfmetrowest.org • February 2015 • Page 3
PORTFOLIO MANAGED POOL (continued)
MANAGED POOL 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.
Asset Allocation
Investment Public Equities Domestic Equities Brown Advisory DSM Capital Partners Hotchkis & Wiley Sound Shore Van Berkom Total Domestic Equities International Equities Advisory Research Int'l Small Cap Dodge & Cox International Marathon-London Int'l Inv Trust Mondrian Focused Emerging Markets Parametric Emerging Markets Total International Equities Total Public Equities Private Equities Bain Capital Fund X Bain Europe Fund III Commonfund Private Equity VI Commonfund Private Equity VII Commonfund International VI FLAG Private Equity II Goldman Sachs Vintage Fund V OS Goldman Sachs Vintage Fund VI OS Total Private Equities Total Equities Inflation Hedging Natural Resources Commonfund Natural Resources VII Commonfund Natural Resources VIII FLAG Energy Resources III Total Natural Resources Real Estate Beacon Capital Strategic Partners VI Blackstone Real Estate Partners V Blackstone Real Estate Partners VI Blackstone Real Estate Partners VII Blackstone Retail Principal Partners Cabot Industrial Value IV GEM Realty Fund V Sterling American Property V Total Real Estate Total Inflation Hedging
% of Pool
6.9 7.0 6.5 9.5 4.6 34.5 2.8 6.0 5.7 2.9 2.1 19.5 54.0
0.9 0.9 0.7 1.3 1.6 0.7 1.0 0.5 7.6 61.6
0.7 1.4 0.2 2.3 0.4 0.5 1.2 1.2 0.2 0.2 0.3 0.4 4.4 6.7
For information on the style of equity investments in the Managed Pool, please see the Equity Pool asset allocation.
PORTFOLIO
FIXED INCOME POOL Flexible Capital Anchorage Partners Offshore Blackstone Partners Offshore Davidson Kempner Partners Offshore Greenlight Masters Offshore Partners Greenlight Capital Offshore (Gold) Ltd Total Flexible Capital
2.2 7.1 2.0 2.2 1.9 15.4
Fixed Colchester Global Investors Eaton Vance Loan Fund Fiduciary Trust State of Israel Bonds
1.6 5.4 7.7 0.9 15.6
Total Fixed
Cash Wilmington Govt MM
Total Cash Total Investments
OBJECTIVE: The Fixed Income Pool invests in short to intermediate MANAGED POOL term securities and attempts to provide a return that is superior to the OBJECTIVE: The Managed Pool attempts toover provide a Merrill Lynch 1-5 Year Government/Corporate Index an entire return that is superior to a balanced stock and bond market cycle. portfolio at a lower volatility over an entire market cycle.
Asset Allocation Asset Allocation Investment Investment
Sound Shore
0.7 0.7 100.0
EQUITY POOL 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 an entire market cycle.
Asset Allocation
Investment % of Pool Domestic Equity Managers Brown Advisory 12.7 DSM Capital Partners 12.3 Hotchkis & Wiley 12.0 Sound Shore 17.3 Van Berkom 8.8 Total Domestic Equity Managers 63.1 International Equity Funds Advisory Research Int'l Small Cap Dodge & Cox International Marathon-London Int'l Inv Trust Mondrian Focused Emerging Markets Parametric Emerging Markets Total International Equity Managers Total Investments
5.2 11.1 14.3 1.5 4.8 36.9 100.0
Style LCG LCG LCV LCV SCC SCV LCV ACC EMC EMV
Equ it y Pool St y l e Legen d A CC=A ll Ca p Cor e A CV =A ll Ca p V a lu e
LCG=La r ge Ca p Gr owt h LCV =La r ge Ca p V a lu e
EMC=Em er gin g Mk t s Cor e EMV =Em er gin g Mk t s V a l u e LCB=La r ge Ca p Blen d
MCG=Mid Ca p Gr owt h SCC=Sm a ll Ca p Cor e SCV =Sm a l l Ca p V a lu e
All information is up-to-date as of December 31, 2014
Past performance is not indicative of future results. Create PDF files without this message by purchasing novaPDF printer (http://www.novapdf.com)
A Jewish Community Foundation of Greater MetroWest NJ Quarterly • www.jcfmetrowest.org • February 2015 • Page 2
% of Pool
% of Pool
Fixed Income Funds Public Equities Colchester Global Investors Domestic Equities Fiduciary Trust Brown Advisory State of Israel Bonds DSM Capital Partners Total Fixed Income Funds Hotchkis & Wiley
Specialty Funds Van Berkom Blackstone Partners Offshore Total Domestic Equities EatonInternational Vance Loan Fund Equities Fidelity Floating Rate High Advisory Research Int'l Income Small Cap Total Dodge & Cox InternationalSpecialty Funds CashMarathon-London Int'l Inv Trust Wilmington Govt MM Emerging Markets Mondrian Focused Merrill Lynch MM Parametric Emerging Markets Total International Equities Total Cash Public Equities Total Total Investments
13.0 52.9 6.9 5.3 7.0 73.6 6.5
9.5 4.6 14.9 34.5
9.8
2.81.4 26.1 6.0 5.7 2.92.4 2.10.3 19.52.7 54.0 100.0
Private Equities
CHARACTERISTICS (5-YEAR HISTORY) Bain Capital Fund X 0.9
(January 1, 2010 Bain Europe Fund III – December 31, 2014) 0.9 Historical Perform ance – JCF I nv estm en t Pools Commonfund Private Equity VI 0.7 Annu alized Cum ulativ e % Positiv e % Negativ e Commonfund Private Equity VII 1.3 Pool Retu rn Return Quarters Quarters Commonfund International VI 1.625 Equity 10.4% 63.7 75 FLAG Private Equity 0.715 Fixed 2.6% II 13.5 85 Managed 85 Goldman Sachs8.5% Vintage Fund50.5 V OS 1.015 Goldman Sachs Vintage Fund VI OS 0.5 Historical Perform an ce – JCF Inv estm ent Pool Ben ch m arks Total Private Equities 7.6 Annu alized Cum ulativ e % Positiv e % Negativ e Total Equities Benchm ark Retu rn Return Quarters 61.6 Quarters Equity 11 .2% 7 0.4 80 20 Inflation Hedging Fixed 2.3% 12.0 85 15 Natural Resources Managed 7 .8% 45.8 80 20 Commonfund Natural Resources VII 0.7 Commonfund Natural Resources VIII 1.4 FLAG Energy Resources III 0.2 Natural Resources (Net of2.3 HISTORICALTotal PERFORMANCE Fees) Real Estate Ending: December 31, 2014 Period Beacon Capital Strategic Partners 0.4 EQUITY 3 Month 1 YearVI 3 Year 5 Year Pool 1.3% 4.5%V 16.3% 10.4% Blackstone Real Estate Partners 0.5 Blackstone Real Estate Partners 1.2 Benchmark 1.5% 5.9%VI 16.8% 11.2% Blackstone Real Estate Partners VII 1.2 Blackstone Retail Principal1Partners 0.2 FIXED 3 Month Year 3 Year 5 Year Cabot Industrial Value IV 0.2 Pool 0.2% 1.7% 2.0% 2.6% GEM Realty Fund V 0.3 Benchmark 0.4% 1.5% 1.4% 2.3% Sterling American Property V 0.4 Total Real Estate 4.4 MANAGED 3 Month 1 Year 3 Year 5 Year Total Inflation Hedging 6.7 Pool 0.6% 5.6% 11.8% 8.5% Benchmark 1.1% 10.5%in the 7.8% For information on the style of4.2% equity investments Managed Pool, please see the Equity Pool asset allocation.
MONEY MARKET POOL
MANAGED POOL OBJECTIVE: The Money Market Pool (continued) invests only in short-term fixed-income securities and seeks to preserve Flexible Capital capital. Anchorage Partners Offshore for JCF Pools 2.2 Benchmarks
Blackstone Partners Offshore 7.1 Davidson Kempner Partners Offshore 2.0 Greenlight Masters Offshore Partners 2.2 Greenlight Capital Offshore (Gold) Ltd 1.9 Total Flexible Capital 15.4 Equity: Blend of 60% of the S&P 500 Index + 40% of the MSCI EAFE Index as of April 1, 2013 Fixed Fixed: Bank ofGlobal America/Merrill Colchester Investors Lynch 1-5 Year U.S. 1.6 Corporate & Government Bond Index Eaton Vance Loan Fund 5.4 Managed: 60% of the Equity Pool benchmark + 40% of the Fiduciary Trust 7.7 PoolBonds benchmark StateFixed of Israel 0.9 Total Fixed 15.6 Cash THE Govt JEWISH COMMUNITY Wilmington MM 0.7 FOUNDATION TotalOF Cash 0.7 GREATER METROWEST NJ 100.0 Total Investments
The mission of the Jewish Community Foundation EQUITY POOL of Greater MetroWest NJ (JCF) is to service the charitable aims and interests of JCF donors by OBJECTIVE: The Equity Pool attempts to provide a return that is gathering, and superior to ainvesting blend of the S&Pdisbursing 500 and thecharitable MSCI EAFE funds over an entire market cycle. and encouraging allocation of these on their behalf, monies to enhance and assure the continuity of charitable institutions designated by the donor and Asset Allocation approved by the Foundation Board. While JCF Investment of Pool offers special encouragement for planned % giving andStyle Domestic Managers the useEquity of endowments for Federation and its Brown Advisory agencies, it also welcomes 12.7 beneficiary theLCG DSM Capital Partners 12.3 LCG opportunity to be of service to recognized charities of every kind: religious, educational and secular Hotchkis & Wiley 12.0inLCV content, Sound Shoreand regional, national and international 17.3inLCV scope. Established in 1949, JCF is one of the largest Van Berkom 8.8 SCC foundations inDomestic the Jewish federation system,63.1 with Total Equity Managers $383 million in assets (as of 12/31/14) and more than $100 million in future commitments. International Equity Funds Advisory Research Int'l Small Cap 5.2 Dodge & Cox International 11.1 Marathon-London Int'l Inv Trust 14.3 Mondrian Focused Emerging Markets 1.5 Parametric Emerging Markets 4.8 Total International Equity Managers 36.9 Total Investments 100.0 Daniel Staffenberg, Executive Director 973.929.3060 [email protected] Equ it y|Pool St y l e Legen d A CC=A ll Ca p Cor e
SCV LCV ACC EMC EMV
LCG=La r ge Ca p Gr owt h
Howard J. Rabner, Chief Financial Officer LCV =La r ge Ca p V a lu e 973.929.3020 | [email protected]
A CV =A ll Ca p V a lu e
EMC=Em er gin g Mk t s Cor e
MCG=Mid Ca p Gr owt h
EMV =Em er gin g 901 Mk tRoute s V alue SCC=Sm a ll Ca p Cor e 10 | P.O. Box 929 NJ 07981-0929 LCB=La r ge CaWhippany, p Blen d SCV =Sm a l l Ca p V a lu e
973.929.3113
www.jcfmetrowest.org | [email protected] All information is up-to-date as of December 31, 2014
Past performance is not indicative of future results. Past performance is not indicative of future results.
Create PDF files without this message by purchasing novaPDF printer (http://www.novapdf.com) Create PDF files without this message by purchasing novaPDF printer (http://www.novapdf.com)
A Jewish Community Foundation of Greater MetroWest NJ Quarterly • www.jcfmetrowest.org • February 2015 • Page 3
MAKING A
Statement February 2015 Shevat 5775 Dear JCF Fund Holders,
Dream It. Believe It. Achieve It. JCF is the largest community foundation in NJ. We bring over 65 years of planned giving expertise to the community. We listen to donors who dream of a better world, and together we put those dreams into action. If you dream of helping people for generations to come, we can help. We’re Forward Thinking. We’re the Jewish Community Foundation.
Can we talk? Contact Daniel Staffenberg at (973) 929-3060 or [email protected] >>>follow us
Ensuring A Strong Jewish Future Matters
A Jewish Community Foundation of Greater MetroWest NJ Quarterly • www.jcfmetrowest.org • February 2015 • Page 4
Enclosed please find the quarterly statement for your Fund at the Jewish Community Foundation (JCF). This statement reflects contribution and distribution activity and investment performance from October 1, 2014, through December 31, 2014. In 2014, U.S. equities posted strong calendar-year gains once again, as the S&P 500 Index and Dow Jones reached record levels many times. But a sharp rally in the U.S. dollar (USD) and tumbling oil prices in the fourth quarter were critical factors in the stark contrast between results in the first and second half of the year. The first half also saw the 2-year U.S. Treasury Note rise 8 bps to 0.46%. However, by the end of December it was 0.67%. Conversely, the 2-year German bund, a proxy for European rates, fell 20 bps to 0.03% in the first half and plunged further to 0.11% by year-end. Similarly, the 2-year Japanese Government Bond yield fell 2 bps in the first six months to 0.07%, only to drop to −0.03% by year’s end. These relative yield differentials to the U.S. were additional factors driving the USD rally against other G3 currencies, with the greenback gaining 11.6% against the euro and 15.4% against the yen.
Another impact on capital markets was the sharp decline of crude oil prices, which plummeted 45.9% over the calendar year. Amid this backdrop, the traditional 70% domestic equities (S&P 500 Index)/30% fixed income portfolio (Barclays Aggregate Index) returned 11.4% in 2014. This outperformed the 3.2% return of a broader diversified portfolio mix, which incorporates nonU.S. and emerging market equities, private equity, real assets, hedge funds, and non-U.S. bonds. Here at JCF, total assets were $383 million as of December 31, 2014, down from $385 million on September 30, 2014. For the quarter ending December 31, the Equity Pool was up 1.3% while its benchmark was up 1.5%. The Fixed Pool ended the quarter up 0.2% with its benchmark up 0.4%. The Managed Pool gained 0.6% while its blended benchmark was up 1.1%. In regard to grant-making, in the fourth quarter of 2014 JCF distributed more than $8 million to qualified nonprofit organizations in Greater MetroWest NJ, across the United States, Israel, and overseas. Grants came from Donor Advised Funds, Supporting Foundations, and Advisory Councils, including, but not limited to, the Gottesman Family Foundation, Grotta Fund for Senior Care, and the Jewish Women’s Foundation of NJ. JCF is also in the business of planned (or deferred) gifts, which we like to call “legacy gifts,” to Federation,
synagogues, and agencies in Greater MetroWest. During 2014, JCF’s Create a Jewish Legacy teams — made up of professional and lay leaders from 15 synagogues and agencies in this first cohort— have secured an amazing 130 legacy commitments totaling over $5 million in estimated future value to help ensure a strong Jewish future. Additional information regarding JCF investments can be found on pages two and three of this newsletter. Please contact Daniel Staffenberg, Executive Director, at (973) 929-3060 or [email protected] with any questions or concerns. Thank you. Regards,
Scott Krieger President
Daniel Staffenberg Executive Director
P.S. Are you enjoying Making A Statement? Do you have ideas for future issues or is there anyone we should add to our mailing list? Let us know by contacting Eileen Heltzer at eheltzer@ jfedgmw.org or (973) 929-3039. We’d love to hear from you!
A Jewish Community Foundation of Greater MetroWest NJ Quarterly • www.jcfmetrowest.org • February 2015 • Page 1
