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 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, Credit Suisse High Yield Bond fund and Dreyfus High Yield Strategies fund), we anticipate significantly out-performing the returns from domestic government and corporate bonds over a full business cycle.

As of December 31, 2017 the Endowment was invested as follows:

    $ % Target
Stocks Vanguard Total Stock Market Index Fund 103,811 42 40
  Vanguard REIT Index Fund 10,999 4 5
  Vanguard Total International Stock Index Fund 27,012 11 10
Bonds Barings Global Short Duration High Yield Fund 33,686 14 15
  Credit Suisse High Yield Bond Fund 36,265 14 15
  Dreyfus High Yield Strategies Fund 33,972 14 15
  Vanguard Federal Money Market Fund 2,783 1 0
Total value   248,528 100 100

In 2017, the Endowment distributed $5,600 to help defray a portion of the Museum's on-going operating expenses. In 2018, the distribution will be roughly $6,465, which is about 3% of the average value of the Endowment on December 31, 2015, 2016 and 2017.