Thoughtful stewardship of your philanthropic dollars
At the Community Foundation, we know that you are entrusting us with your philanthropic funds. We take pride in managing your dollars according to best practices. To that end, we hold ourselves to rigorous standards in order to mitigate risk and identify opportunities. Our internal experts collaborate with Colonial Consulting, LLC, and are guided by a volunteer investment committee that bring a wealth of knowledge to our investment strategies and process.
As a philanthropist, you may request that your fund be invested according to one of four diverse investment options to meet your grantmaking and time objectives:
The Pool consists of a wide array of institutional money managers, each selected for specific portfolio characteristic deemed important to building a well-diversified total portfolio with a likelihood of delivering long term returns that preserve the purchasing power of dollars invested in the Pool. The investment committee of the Community Foundation Board selects managers with the assistance of a neutral investment consultant.
For our pooled assets, we rely on the advice of an independent consultant, Colonial Consulting, LLC, to craft a long-term investment strategy and recommend expert asset managers that invest each component of the Foundation Pool’s asset allocation.
For questions regarding investments, please contact:
Asset Allocation and Investment Performance
The Community Foundation’s investment philosophy for the Investment Pool and American Funds program focuses on long-term investments using diversified portfolios with a bias toward equities. We seek to:
- Achieve investment returns that provide reasonable funding for donors’
- Augment the value of the corpus at a rate greater than inflation, net of grant distributions and associated expenses
Results – June 30, 2018
Market Overview – Major US equity indices posted gains (S & P 500 +3.4% and Russell 2000 +7.8%) whilst broad non-US indices had negative returns (MSCI All Country World -2.6% and MSCI Emerging Market Equity -8.6%) for Q2 2018. In general, fixed income indices were down (Barclays Capital Aggregate -0.1% and Citigroup World Govt. Bond -3.4%) for the same period.
Investment Pool – Calendar year-to-date, the Investment Pool’s return of +0.3% matched its Target Benchmark. The Investment Pool returned +0.4% for Q2 2018, which was slightly behind the return of its Target Benchmark, +0.6%. Performance over the past year has been hampered by shortfalls against respective asset class benchmarks in these asset classes:
- Opportunistic/Special Situations – This portfolio segment invests in strategies expected to provide a higher absolute and risk adjusted return over time. Given the nature of these investments, we think such positions are best evaluated over longer periods of time and remain confident in the holdings.
- Emerging Market Equities – Underperformed due to:
• Lack of exposure to leading internet/consumer names in China
• Exposure to Brazil
Taking a longer view, the Investment Pool out-performed its Target Benchmark for the 5, 7 and 10-year periods ending 6/30/18.
American Funds – The American Funds program, which is not as broadly diversified as the Investment Pool, exceeded its Benchmark for all short and long-term time periods we measure for periods ending 6/30/18.
Conservative Fund – The Conservative Fund returns are in line with what is expected for a money market dominant portfolio.
Summary – Foundation investment options are designed to provide clear choices across the risk/return spectrum and produce results that support charitable giving strategies that align with each investment option’s objective.
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 – March 2018
The investment committee of the Community Foundation Board closely monitors the investment of our assets, as well as the managers who implement our investment strategies. As stewards of our assets, the Foundation’s investment committee holds the selected investment managers to the highest standards of ethical behavior and professional performance.
• Samuel Allen, Chairman, Globalt, Inc. (Retired)
• Thomas J. Asher, President, The Rich Foundation
• Edward S. Croft, III, Managing Director, Croft & Bender, LP
• William A. “Billy” Mitchell, Carter and Associates (Retired)
• Michael A. Nadal, VP, Portfolio Manager, Montag & Caldwell
• Galen Oelkers, President, The Zeist Company, LLC
• Bryan Rand, Partner, Belstone Capital
• Wendell Reilly, Chairman, Berman Capital Advisors
• Anne Sterchi, Executive Director, J. B. Fuqua Foundation