Investment Report

Investment update for the quarter ended September 30, 2024

During the third quarter of 2024, domestic markets and the S&P 500 showed signs of volatility following a strong first half of the year. After experiencing headwinds at the beginning of the quarter, largely due to concerns over inflationary pressures and renewed geopolitical tensions, the S&P 500 continued its 2024 winning streak, posting record highs on many occasions. Resilient corporate earnings and expectations of further rate cuts by the Federal Reserve give cause for optimism as we enter Q4.

The Foundation’s Long-Term Portfolio maintained its tactical target throughout the quarter. With an equity allocation of 65%, the portfolio continued to perform competitively against its benchmarks, despite market fluctuations. The portfolio, which favored international investments over domestic, is incrementally shifting toward domestic equities to align with global indexes. Allocations to Chinese markets have also decreased.

Looking ahead, we remain cautiously optimistic, though we recognize that geopolitical tensions and political uncertainty may keep markets volatile. Our Investment Management Committee, in close collaboration with the South Dakota Investment Council, remains committed to its disciplined approach, focusing on long-term growth. The Committee continues to monitor global and domestic markets, assess risks, and seek out strategic opportunities to enhance the portfolio's performance.

Investment Returns for Period Ending 9/30/2024

Money Market Portfolio

Intermediate Portfolio

Long-Term Portfolio

Long-Term Portfolio Compound Annualized Returns as of 6/30/2024