Market Overview & Investment Update by Jeff+Tom of Morgan + Stanley

focus: Schwartz Scholarship Investment Funds 

• Performance: The market saw a slight decline of 0.6% for the year, though it remains relatively flat. Volatility is expected to continue, but no long-term negative trends are anticipated.

  • 2022: Market down by 13%
  • 2023: Started at +5.1%, ended at +5.5%

• Investment Strategy: The portfolio is split 50/50 between stocks and bonds. As the market fluctuates, the approach remains the same—taking profits when markets rise and purchasing more stocks when markets dip.

• Stock Selection: The investment team focuses on 30-34 diverse stocks, including sectors like technology, oil, and cattle, modeled after the Dow Jones Industrial Average. Emphasis is placed on companies with consistent dividends and earnings (e.g., Heinz Ketchup).

• Scholarships & Giving: The scholarship fund has seen consistent growth, with scholarships increasing each year. However, we may need to tap into principal if necessary to support future withdrawals.

  • Scholarship Payout: The fund is designed to offer an annual 4-5% withdrawal rate, ensuring sustainability without dipping into principal.
  • Total Fund Growth: Since 2010, the portfolio grew from $3.5M to $5.7M, with a $2.8M withdrawal.

• Annual Scholarships: Last year, 8 scholarships were awarded; this year, 9 scholarships will be given. The scholarship fund continues to provide crucial financial assistance, with 50-80 applicants each year.