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Second Quarter 2010 Investment Performance
At the end of the second quarter, the Kalamazoo Community Foundation's assets totaled $260.8 million, down from their first quarter level of $275.9 million. This drop represents the effect of market indicators like the S&P 500 falling nearly 12 percent, with equity indicators falling at similar levels. The S&P's 1,030.71-point level at June 30 was lower than September 30 last year, but still considerably higher than its five quarter low of just less than 800 at March 31, 2009.
Amidst this higher than normal market volatility, the quarter's drop will negatively impact 2011 endowed fund spending calculations as well as future spending. On the other hand, 2011 spending was already buttressed by "above normal returns," with a one-year performance of 48 percent at March 31. Some might conjecture that with nearly 50 percent one-year returns at the end of the first quarter and a less than robust economy, the market was likely positioned to fall.
The two recessions, sluggish American and Chinese economies, the darkening U.S. jobs scene, the impact of the sovereign debt crises in Europe, falling consumer spending, and many other domestic and global factors set against remarkably high corporate earnings all weigh heavily on the capacity for the Community Foundation to address the community's needs. As more of the higher asset quarters from September 2005 through June 2008 lapse out of the 20 quarter rolling average used to determine future spending, a continued more guarded view of future asset growth will be required, making reduced investments in the community the norm until future successive quarters bring high asset levels.
The Community Foundation's philosophies of performance-based excellence and continued learning, as well as the discipline and due diligence of its investment model, will consistently drive and refresh the institution's forward movement in bettering the community.
Click here to view a chart of the Community Foundation's Second Quarter 2010 investment performance.
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Community Foundation receives $200,000 grant for racial healing from W.K. Kellogg Foundation
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When life gives you apples
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