The Impact of COVID-19 on Investment Portfolios
COVID-19 is hitting investment portfolios with "a series of plunges in asset values not seen since the market meltdown of 2008," Debra Moniz, director of administration and finance at the Cedar Tree Foundation, writes in Exponent Philanthropy.
"For funders who rely on investment returns to fund their grantmaking, the situation is nothing short of alarming," she says, adding that "until we see the peak of the virus and have a sense of how to calculate the economic impact, I expect volatility will continue."
In my mind, the most important thought to keep foremost is this: The point of a foundation investment portfolio is to deploy funds in the world for charitable purposes. Supporting grantees in their work is Cedar Tree’s guiding principle. We have no plans to curtail grant budgets despite the market drop.
Among the recommendations she shares, Moniz states that having an investment consultant to turn to when things go south in the market is very helpful.
Our consultant is showing her mettle by being super responsive and offering to host an impromptu call or talk through any concerns the board might have. She assures me she and her firm are monitoring the situation and will be in touch immediately with any developments. I appreciate the foundation has access to her expertise and experience.