The Community Foundation has established a variety of investment portfolios, each with different investment guidelines. The following is a brief description of each of these portfolios.
Long Term Investment Portfolios:
This investment pool has been developed by the Foundation’s Investment Committee as the primary investment vehicle for funds invested for the long-term. Its purpose is the generation of maximum long-term total returns within levels of risk determined to be prudent by the Foundation Trustees. The Global Growth Pool’s objective can best be described in one word, diversification. The Investment Committee believes that a multi-asset class portfolio, consisting of many different types of investments from around the world, best fulfills that objective. It also recognizes that the best investment ideas come from many different sources.
The Investment Committee invests in publicly traded US & International equities and US bonds exclusively using low cost indexed mutual funds and invests directly in a number of alternative investment fund of funds including equity and multi-strategy hedge funds, private equity, venture capital, private real estate, natural resources and mezzanine debt.
The portfolio is as follows:
Asset Manager(s): Various low cost mutual funds for all investments other than alternatives. Alternatives consist of private equity and venture capital, real estate and natural resources, and hedge fund of funds.
Benchmark (blended): 40% CRSP US Total Market Cap Index // 30% FTSE All World Ex-US// 30% Barclay’s Aggregate Bond Index
Fee: Approximately 12 basis points (.12%) for all index fund investments.
BANK OF AMERICA AGENCY PORTFOLIO
The Agency Portfolio’s investment strategy is based on a highly diversified portfolio of assets with a keen awareness of risk. This balanced approach, consistently executed, reconciles the market’s often volatile nature, with our focus on long-term, steady growth over decades.
Asset Manager(s): Bank Of America
Benchmark: (blended): 40% Wilshire 5000 // 30% FTSE All-World ex-US // 30% Barclay’s Aggregate Bond Index
Fee: Approximately 100 basis points (1%)
SOCIALLY RESPONSIBLE PORTFOLIO
This pool has been developed as a long-term portfolio for those donors who strongly believe that investments can make a positive difference on social and environmental issues. To this end, the Committee has employed Trillium Asset Management an active portfolio manager that specializes in structuring portfolios based on an intensive screening process. As in any investment endeavor that limits the scope of investments, this portfolio may tend to be more volatile than one that is able to diversify across the entire universe of investment opportunities.
Asset Manager: Trillium Asset Management
Benchmark (blended): 50% Wilshire 5000 // 20% EAFE // 30% Barclay’s Aggregate Bond Index
Investment Vehicle(s): Actively managed by Trillium Asset Management using
“socially responsible” criteria.
Fee: Approximately 40 basis points (.40%)
INTERMEDIATE TERM PORTFOLIO
This is the Foundation’s most conservative intermediate term investment portfolio. Its primary objective is to provide relatively stable value with the potential for principal growth. An emphasis has been placed on achieving market rates of returns, with broad diversification and low management cost. The higher debt and cash component dampen the volatility of the portfolio, but may limit appreciation potential and thus is not consistent with the Foundation’s spending policy.
Asset Manager: Vanguard Group
Benchmark (blended): 50% Wilshire 5000 // 25% Barclay’s Aggregate Bond Index // 25% 90-Day T-Bill
Underlying Investment Vehicle(s): 50% Vanguard Total Stock Market Index Institutional Fund,
25% Vanguard Total Bond Market Index Institutional Fund, 12.5% Various Vanguard Money Market Funds, 12.5% Vanguard Short Term Bond Index Fund
Fee: Approximately 10 basis points (.10%)
SHORT TERM PORTFOLIO
This portfolio is available only for those donor advised and other funds where the bulk of the principal will be expended in a relatively short time. The main objective of the pool is preservation of capital and current income. The money market portfolio’s investment objectives are not consistent with the Foundation’s spending policy or with the growth of principal and thus represent a poor long-term investment.
Asset Manager: Vanguard Group
Benchmark: 90-Day T-Bill
Underlying Investment Vehicle: Vanguard Admiral Treasury Money Market Fund and Prime Money Market Fund, The Investment Fund for Foundations (TIFF-Short Term), and Nuvo Bank CD
Fee: 13 basis points (.13%)
Short-Term performance for quarter ending March 31, 2019.
If the Community Foundation deems it prudent, newly donated assets to funds of $500,000 or more may be invested through an investment manager recommended by the donor. Each investment manager serves at the pleasure of the Trustees of the Community Foundation, and the performance of each is monitored to make sure that portfolio assets and returns are appropriate.