Investments
The Community Foundation is committed to maintain and grow the charitable assets entrusted to us. Our investment program benefits significantly from broad diversification, which reduces the overall risk of the portfolio and provides for long-term growth. Endowment assets are placed with highly-qualified investment managers and monitored closely by our Investment Committee.
The Investment Committee reviews investment performance, asset allocation and investment management. All investment securities are held in custody by financial institutions and are professionally managed. Members of the Investment Committee for FY 2009-2010 are:
Elizabeth S. Peabody, Chair Charles J. Kane, Jr. * Advisory Member
H. Scott Davis* William O. Price
Jacqueline C. Gibbs-Wetherby William O. Rudd*
Martha D. Hall*
Fourth Street Performance Partners is responsible for all recommendations and evaluations of investment managers.
The Foundation manages endowment assets to provide for the long-term growth of the funds, keep pace with inflation and provide a predictable amount for charity each year—thus building a permanent and growing philanthropic resource for our community. The Foundation offers the following investment options for endowment funds:
- Balanced Fund 65% stocks, 35% bonds
-
Socially Responsible Fund 60% stocks, 40% bonds
-
Aggressive Fund 85% stocks, 15% bonds
-
Bond Fund 100% bonds
To review the asset allocations for each endowment investment option, click here.
A moderate investment fee is charged annually for all funds. Fees currently range from 0.43 to 0.89% of the fund balance depending on the type of investment option. In addition to the investment management fee, an administrative fee is paid to the Community Foundation. For more information about our administrative fees, click here.
The most recent compounded annual returns are available below. All returns are net of investment management fees.
|
Balanced |
Socially Responsible |
Bond |
Aggressive |
| As of 12/31/2009: |
|
|
|
|
| Fifteen Year |
7.3% |
7.0% |
NA |
NA |
| Benchmark |
7.6% |
7.9% |
6.8% |
8.0% |
| Ten Year |
2.3% |
2.1% |
NA |
NA |
| Benchmark |
1.9% |
2.3% |
6.3% |
.3% |
| Five Year |
2.8% |
1.4% |
6.0% |
NA |
| Benchmark |
2.3% |
2.5% |
5.0% |
1.2% |
| Three Year |
-.5% |
-2.8% |
7.6% |
-3.1% |
| Benchmark |
-1.3% |
-.67% |
6.0% |
-3.6% |
Our current grant distribution policy allows for a 5% annual distribution of the total endowment fund balance (unless otherwise restricted) for grants, and the Foundation’s administrative fee, keeping any additional earnings in the fund to protect against the effects of inflation. The Foundation strives to maximize the money available for grant distributions without impairing their purchasing power over time.
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