The Wilson Historical Society Endowment

The underlying philosophy for investing Endowment funds is based on having a fully invested, broadly diversified, low-cost portfolio that does not attempt to predict when to be "in" or "out" of the equity and fixed income markets. On the equity side, we invest in domestic equities and international equities to essentially match the returns measured by broad-based indices. Thus, our performance should roughly match global equity returns over a full business cycle. On the fixed-income side, we take more credit risk than would occur by investing solely in domestic government and corporate bonds. Through leveraged short-term closed end funds (Barings Global Short Duration High Yield Fund, Guggenheim Credit Allocation Fund, and Eagle Point Credit Fund), we anticipate significantly outperforming the returns from domestic government and corporate bonds over a full business cycle.

As of December 31, 2019 the Endowment was invested as follows:

    $ % Target
Stocks Vanguard Total Stock Market Index Fund 129,184 48.2 45.0
  Vanguard Extended Market Index Fund 12,685 4.7 5.0
  Vanguard Total International Stock Index Fund 24,932 9.3 10.0
Bonds Barings Global Short Duration High Yield Fund 33,832 12.6 13.3
  Guggenheim Credit Allocation Fund 34,188 12.8 13.3
  Eagle Point Credit Fund 30,395 11.3 13.3
  Vanguard Federal Money Market Fund 2,901 1.1 0.1
Total value   268,117 100 100

In 2019, the Endowment distributed $6,850 to help defray a portion of the Museum's on-going operating expenses. In 2020, the distribution will be roughly $7,400, which is about 3% of the average value of the Endowment on December 31, 2017, 2018 and 2019.