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, domestic real estate and international equities and, 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 levered short-term investments (BlackRock Limited Duration fund), international bonds (Templeton Global fund) and lower credit bonds (High-Yield fund) we anticipate significantly out-performing the returns from domestic government and corporate bonds over a full business cycle. As of December 31, 2016 the Endowment was invested as follows:

    $ % Target
Stocks Vanguard Total Stock Market Index Fund 85,288 41 40
  Vanguard REIT Index ETF 10,850 5 5
  Vanguard FTSE All-World ex-US Index Fund 29,549 14 15
Bonds BlackRock Limited Duration Fund 30,391 15 15
  Templeton Global Income Fund 30,711 15 15
  Vanguard High-Yield Corporate Fund 20,296 10 10
  Vanguard Federal Money Market Fund 2,288 1 0
Total value   209,373 100 100

In 2016, the Endowment distributed $4,850 to help defray a portion of the Museum's on-going operating expenses. In 2017, the distribution will be roughly $5,925, which is about 3% of the average value of the Endowment on December 31, 2014, 2015 and 2016.