Report From The Investment CommitteeDec 3rd, 2009
A report on the financial health and habits of Khyentse Foundation
In order to achieve its goals, Khyentse Foundation relies on sound, professional investment of its funds. To this end, Rinpoche has appointed a five-member Investment Committee, all of whom have extensive knowledge and experience in investments, accounting and portfolio management.
The board heard reports and updates from the investment committee which was essentially reassuring. Although the Foundation lost 10% of its assets during the worldwide financial downturn of 2008-2009, our loss was significantly less than that of the S&P 500 or of our synthetic benchmark, which were down 28% and 19% respectively. And, since July of this year, there has been substantial recovery. It is also important to know that although our loss reduced our previous investments gains, we did not lose any money ever donated to Khyentse Foundation.
Another encouraging development is that in spite of the financial turmoil, we received close to our target of $1million in donations in fiscal year 2008-09. Because of this unyielding and continued support from our monthly and one-time donors, we are able to significantly expand our 2009-10 budget. For the first time in the Foundation’s nine-year history, our budget for project funding will exceed $US1 million in the coming year.
The lessons learned from the financial turmoil of last year have made the Investment Committee even more responsive to market situations, more prudent in their investment decisions, and more active in the overall management of the Foundation’s assets.