Investment Options

Thoughtful stewardship of your philanthropic contribution.

At the Community Foundation, we appreciate you entrusting us with your philanthropic funds. Accordingly we hold ourselves to rigorous standards to identify opportunities and mitigate risk. Our internal experts work closely with Disciplina Group, guided by a volunteer investment committee that enhances our investment strategies and processes with a wealth of knowledge.

As a philanthropist, you may request that your fund be invested according to one of five diverse investment options to meet your timing and grantmaking objectives:

Asset allocation and investment performance

The Community Foundation’s investment philosophy for the investment pool and American Funds program makes long-term investments using diversified portfolios toward equities. Through this program, we seek to:

  • Achieve investment returns, providing reasonable funding for donors
  • Make significant charitable distributions
  • Augment the value of the investment at a rate greater than inflation, net of grant distributions and associated expenses

Results:
Q4 2023

Market Update – Investors came into 2023 licking their wounds because both equity and fixed income markets saw double digit declines in 2022. By the time the year was over, all were pleasantly surprised that global equities gained over 22% in 2023.  Markets were encouraged by a surprisingly resilient U.S. economy and consumer as well as a gradual decline in the rate of inflation over the course of the year. Most asset classes posted a strong finish to the year as sentiment shifted while the Federal Reserve finished raising short term interest rates and swung to possibly cutting rates in early 2024.

While overall returns for risk assets exceeded expectations, the year was not without its share of drama and volatility. During the first quarter, markets weathered the  collapse of west coast-based Silicon Valley Bank, which contributed to the demise of Credit Suisse when it was acquired by UBS. Equities continued to gain ground in the second quarter as the Fed paused from raising rates and inflation continued to moderate. Later in the summer, fears of an overheating economy and a credit downgrade of U.S. Government bonds pushed bond and equity prices lower. Third quarter losses were erased in a fourth quarter rally as investors were optimistic that global central banks may pilot a soft landing in 2024.

Global equities, as measured by the MSCI ACWI index, increased 11.0% in the fourth quarter for a gain of 22.2%. U.S. stocks continued to outperform other developed markets with the Russell 1000 posting a 12.0% return and the MSCI EAFE index up 10.4%, leaving them up 26.5% and 18.2%. Both growth and value stocks gained during the quarter with the Russell 3000 Growth index increasing 14.1% and the
value index up 9.8%. Growth still held on to its lead this year, up 41.2% versus 11.7% for the value index. Emerging market stocks rose 7.9% in the fourth quarter, ultimately with a gain of 9.8%.

Fixed income markets saw plentiful gains from optimistic Fed outlooks and declines in inflation with the Bloomberg Aggregate Bond Index up 6.8% pushing it to a return of 5.5% this year. Three-month treasury bills continued to achieve modest gains, up 1.4% in the fourth quarter and 5.0% year to date. Long treasury bonds enjoyed gains of 12.7% in the quarter to squeeze out a gain of 3.1% to end the year. High yield bonds remained the best place to be in fixed income, up 7.1% for the quarter and gaining 13.5% for 2023.

Real asset returns were mixed with the broad commodity index down -4.6% for the quarter and closed down -7.9%. Energy stocks lagged in the fourth quarter with a return of -6.8%, leading to a loss of -0.6% year to date. REITs saw an increase of XXX, pushing them to a gain of 13.7%.

IMPORTANT MESSAGE: The performance information presented is being provided to donor advisors with an interest in the Foundation’s investment options. It is not intended to constitute an offering of any kind. The performance information is shown net of investment management fees and has not been audited.

Investment Returns Report: Q4 2023

Benchmark Information

Oversight

The investment committee of the Community Foundation Board, as well as the managers who implement our investment strategies, closely monitor the investment of our assets. As good stewards of our assets, the Foundation’s investment committee holds the selected investment managers to the highest standards of ethical behavior and professional performance.

Committee members:

  • Mary Cahill, CEO and Chief Investment Officer, Acansa Investment Management, Co-chair
  • Dekia Scott, Chief Investment Officer, Southern Company, Co-chair
  • Susan Grant, Retired, ex officio
  • Russ Allen, Director, Investment Strategy, Sage Mountain Advisors
  • Bert Clark, Wealth Management Advisor, Estate Strategies Group, LLC
  • Francesca D. Gary, Blue Cross and Blue Shield of North Carolina
  • Stephanie Lang, Chief Investment Officer, Homrich Berg
  • Grace Moore, Vice President, Diversified Trust
  • Jeffrey Muir, Partner, Fulcrum Equity Partners
  • Stuart Peskin, Northwestern Mutual
  • Bryan Rand, President of Vacation Innovations and Partner, Tritium Partners