Endowment Committee

Atlantic Union took over management of our endowment on 1/21/2022 and from that date, through the end of 2022, the portfolio declined by -7.83% when excluding the $150,000 draw. For the full year (including the first 3 weeks of Jan 2022), the performance was negative -11.5% when excluding the $150,000 draw. Inclusive of the $150,000 draw, the endowment declined over -14%, or approximately $900,000 for the full year.

On the positive side, AU outperformed their benchmarks in each of the three major categories of equities (77% of portfolio), fixed income (15%) and nontraditional investments (6%). The US stock market was down approximately -20% and the US bond market was down approximately -13% in 2022. It is an extremely unusual occurrence for both the equity and bond markets to decline by double digits in the same year. As a result, there was really nowhere to hide for money managers. That said, the use of cash and nontraditional investments by AU (including real estate and private credit) positively impacted the performance of the endowment. While having a diversified portfolio did not have the intended effect (with fixed income offsetting equity losses), it did help the endowment outperform on a relative basis.

Daniel Leger For the Endowment Committee