Investment Report

Investment update for the quarter ended March 31, 2025

In the first quarter of 2025, the S&P 500 experienced both an all-time high and a historic downturn. While markets tend to favor stability and predictability, the beginning of the year brought with it anything but.

Tech stocks continue to dominate the overall market, and where they go, the market tends to follow. Uncertainty surrounding global trade, inflation, and foreign policy drove much of the volatility toward the end of the quarter, particularly in the highly globalized technology sector.

The Community Foundation’s Long-Term Portfolio maintained its strategic allocation throughout the quarter, with an equity exposure of 65%. The portfolio’s relatively low equity exposure positions it well to weather an economic downturn, posting a better return than the domestic market overall.

The Foundation continues to hold international and domestic equities in roughly equal measures. Allocations to emerging markets, particularly in Asia, are carefully monitored, with a focus on balancing risk and opportunity.

In the weeks since quarter end, volatility has only accelerated. The Community Foundation expects that volatility to continue for the time being and remains vigilant for both opportunities and headwinds.

Our Investment Management Committee, in collaboration with the South Dakota Investment Council, is committed to a disciplined investment approach, focused on long-term performance and continuously monitoring market conditions to identify strategic opportunities to enhance the portfolio's performance.

---

Investment Returns for Period Ending 3/31/2025

Money Market Portfolio

Previous Quarter	1.05%
Calendar Year-to-Date	1.05%

Intermediate Portfolio

Previous Quarter	2.84%
Calendar Year-to-Date	2.84%

Long-Term Portfolio

Previous Quarter	0.80%
Calendar Year-to-Date	0.80%

Long-Term Portfolio Compound Annualized Returns as of 12/31/2024

Thirty Years	7.61%
Twenty Years	6.64%
Ten Years	6.43%
Five Years	6.37%
One Year	8.92%