At NMF, we take great care to responsibly invest the funds donors entrust to us. An investment performance committee comprised of board members meets throughout the year and focuses on guiding the investment strategy.
This committee regularly reviews financial reports from our investment managers to assure they meet our expected standards of performance.
We use two primary investment firms – Bremer Trust and Compass Capital. Our portfolio consists of 60% equities and 40% fixed investments. A small amount (10% of assets) is also invested in real estate.
Our current 20-year average rate of return is 8.1 percent. Since this is an average, some years will be better and some years will be worse.
The chart below illustrates the rate of return for each of the past 20 years. The market has fluctuated significantly in the last two decades, but the overall trend—denoted in green—has been one of growth.
Please note that no fund is required to distribute its earnings allocation every year. In the periods of slow growth, it may be prudent to support the endowment by reducing or halting grant distributions.