Foundation’s fiscal year investments perform favorably in volatile market

The Foundation for the Diocese of Helena, Inc., has benefited from the successful investment, management and performance of its endowment assets during its existence and both the current as well as the last several years prove no exception. Recent reports show the Foundation’s invested returns to be very favorable at limiting the effects of the extreme volatility of the markets, especially within the last three years.

The foundation’s endowment fund continues to out-perform most standard market indices. Investment management oversight by the foundation’s board of trustees continues to assure both safety and performance within today’s volatile markets. FDH utilizes the professional services of Wells Capital Management (WCM) and The Investment Group (TIG), of Helena, Montana, for management of its principal portfolios. As a point of investment performance comparison, the FDH portfolio managed by Wells Capital Management showed a positive total weighted investment return of 6.9 percent for fiscal year ending June 30, 2006. The common stocks performance within the portfolio for the period ending 6/30/06 returned 9.3 percent and fixed income investments returned 1.5 percent. For the extended investment cycle period June 30, 1991, through June 30, 2006, the WCM portfolio has reported a total average per annum return of 9.2 percent. This positive showing is a result of a conservative asset allocation policy emphasizing adverse risk management within a balanced portfolio and it has proved a winning formula for benefit of the Church patrimony entrusted to FDH. The current average yield on the portfolio’s investments was 3.7 percent. (See TABLE 1 below.)

The FY 2005-2006 performance report from The Investment Group showed an equally favorable return for our fiscal year ending June 30, 2006 with an overall positive return calculated at 13.90 percent. The portfolio grew in value from $328,248 to $575,877 – because of the maturation and additions from one of three Margaret Quinn Trusts held for benefit of the Foundation. The total average yield on the TIG portfolio was 3.35 percent; the total average annual return on portfolio investments, since its Jan. 1, 1996, inception, is 9.73 percent. The earnings from these portfolios as well as from other investments of the foundation help to assure that the parishes, outreach programs and ministries of the Diocese of Helena are continuing to benefit from the endowed gifts donated for their respective causes. (See TABLE 1.)

Published in The Montana Catholic, Vol. 23, No. 3, March 23, 2007.