APPLETON, Wis., January 9, 2019 /PRNewswire/ — After a good start to the year, volatility returned in 2018. A stronger U.S. dollar weighed on international and emerging markets throughout most of the second half of 2018, although there was no shortage of other investor concerns. Global recession fears, U.S. Federal Reserve rate hikes and higher interest rates, slowdown in corporate profits, an escalation in the U.S.-China trade dispute and other factors resulted in a global asset selloff that left few asset classes untouched.
Only three of the Index’s nineteen components posted gains in 2018. International developed fixed income (+2.94%), US T-Bills (+1.70%), and managed futures (+0.32%). Eight of the Index’s components posted double digit losses for the year with the worst three being emerging markets-China (-28.05%), commodities-timber (-21.11%), and commodities oil & gas (-19.36%).
Endowment Index™ 2018 Constituent Performance
|Asset Class||2018 Change (%)||Asset Class||2018 Change (%)|
|Intl Developed Fixed Inc||2.94||Intl Real Estate||-9.48|
|Managed Futures||0.32||Intl Developed Equity||-14.20|
|Domestic Fixed Inc||-0.04||Emerging Mkt Equity||-14.69|
|Private Eq-Distressed Debt||-3.67||Commodity-Oil & Gas||-19.36|
|Emerging Mkt Fixed Inc||-5.67||Em. Market Equity-China||-28.05|
|Domestic Real Estate||-5.95|
The Endowment Index™ represents the investable opportunity for managers of portfolios utilizing the Endowment Investment Philosophy™ or who otherwise incorporate alternative investments within a comprehensive asset allocation. The Index provides an objective tool used for portfolio comparison, investment analysis, and research and benchmarking by fiduciaries, trustees, portfolio managers, consultants and advisers to endowments, foundations, trusts, defined benefit/contribution plans and individual investors.
About the Endowment Index™ calculated by Nasdaq OMX®
The Endowment Index™ uses an objective, rules-based construction methodology based upon the portfolio allocations of over 800 educational institutions managing over $500 billion in total assets. Each of the 19 sub-indexes that currently comprise the index are investable, and contained within those sub-indexes are over 33,000 underlying securities. Real-time pricing data on the Endowment Index™ can be viewed under the symbol “ENDOW” through major quote providers, including Bloomberg as well as public websites such as Google and Yahoo Finance. The Morningstar® Index ID for the Endowment Index™ is F00000TPG6.
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