Investment Program

The Investment Committee of the Community Foundation recognizes that funds may be held subject to different provisions as to how and when the income and/or principal are to be expended, and therefore may best be invested in different pools with different investment guidelines. The timing of the expected use of assets should normally determine the type of investment used.

The Community Foundation’s primary investment goal for funds invested for the long-term is the generation of maximum long-term total return on its assets within levels of risk determined to be prudent by the Committee. Such investment should be designed to achieve the total return (income plus capital change) necessary at least to preserve the principal of the funds after any additions and after deductions for expenses, inflation and the distributable amounts prescribed by the distribution policy of the Foundation. In addition, as a goal, the Committee seeks to achieve for its portfolios net returns greater than those of a composite benchmark comprised of those indices identified by the Committee as most appropriate.

Diversification of investments will be one of the Committee’s primary strategies for fulfilling the Foundation’s responsibilities. Since the selection and weighting of asset classes is one of the primary determinants of both investment return and volatility, the selection of those classes and the allocations among them are regularly and carefully considered and monitored by the Investment Committee.

The Community Foundation has established a variety of investment pools, each with different investment guidelines.

Once a fund is established, the Foundation will consult with each donor and select an appropriate investment pool. Allocation of monies to more than one pool is usually not appropriate; however, recommendations for changing investment pools will be considered by the Committee.

The Community Foundation retains a consultant to provide advice concerning its investment pools as well as to analyze their performance. The fee for this service is included in the administrative fee charged by the Foundation to each fund. As noted below, investment manager and mutual fund fees are charged to each fund, in addition to the Foundation’s administrative fee. Although funds at the Community Foundation are commingled in these investment pools, the appreciation, income, and expenses are allocated on a unit basis to each fund invested in that pool. Comprehensive fund reports are prepared and distributed quarterly.

For more detailed information on the Foundation’s portolios, see the Investment Portfolio page.

For more information about the Community Foundation’s investment policies, portfolios, and commentary, contact Lisa Bisbee, at 413-732-2858 or via email at lbisbee@communityfoundation.org.