Endowment Index 3Q 2020 Performance Update

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In October 15, 2020

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Endowment Index® Third Quarter 2020 Performance Update

 October 15, 2020.  Appleton, WI–The Endowment Index® calculated by Nasdaq OMX® (Symbol: ENDOW) gained 5.05% (on a total return basis) for the third quarter ended September 30, 2020.   This compares to the Global 60-40 Portfolio (60% Stocks, 40% Bonds), which increased 5.89% for the same period.

The economic recovery continued in Q3 2020 and overall, equity markets posted strong gains with the S&P 500 Index rising 8.9%. The gains were not limited to U.S. markets as developed and emerging market equities were up 9.77% and 8.04%, respectively for the quarter.

Twenty-one of the Index’s twenty-four components posted gains for Q3 2020, with four posting double digit gains. The top four performing components of the Index for Q3 2020 were emerging market equity – China (+15.57%), timber (+14.57), private agriculture (+12.13) and commodities/diversified futures (+11.59%). Publicly traded MLP’s and oil & gas were the two laggards, posting losses of -16.65% and -20.35%, respectively.

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 Endowment Index measures performance for a multi-asset, globally-diversified, three-dimensional portfolio that includes Global Equity, Global Fixed Income, and Alternative Investments (like Private Equity, Hedge Funds and Real Assets) The Index applies an objective, rules based construction methodology based upon portfolio allocation data obtained from over 770 educational institutions that collectively manage over $630 billion as of 6/30/19. Each of the 24 sub-indexes that currently comprise the Index are investable and contained within those sub-indexes are over 44,000 underlying securities.

Definitions:  Global 60-40 Stock-Bond Portfolio index comprised of 60% MSCI All-Country World Index + 40% Barclays Global Aggregate Bond Index.

Past performance not necessarily indicative of future results.