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:
Global Growth Portfolio
This investment portfolio 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.
We have a strong underlying belief that superior long-term performance will be generated by adherence to an approach that focuses on low cost index based products and minimal active portfolio management – either in the form of active security selection strategies or active attempts at anticipatory asset allocation. The Global Growth Portfolio’s goal is to maximize longer term return while undertaking a prudent level of 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. All cash flows into and out of the account will be utilized to rebalance toward target weights when the cash flow occurs. If upon any valuation date the portfolio deviates by five percentage points or more from the target allocation or exceeds the policy range for any asset class the portfolio will be immediately rebalanced to bring that asset class as close to its target percentage as possible.
Asset Manager(s): Vanguard and Schwab.
Benchmark: 35% CRSP, 20% FTSE High Dividend Index, 20% FTSE AW ex-U.S. TR, 5% MSCI Emerging Markets, 20% Barclays Aggregate Bond. The benchmark for the entire portfolio will be a composite of the above benchmarks. In addition, appropriate benchmarks for private equity, private real estate, and natural resources investments will be utilized to monitor these specialized investments.
Fee: Approximately 12 basis points (.12%)
Global Growth performance for quarter ending September 30, 2024.
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: 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 environmental, social and governance (ESG) issues. To this end, the Committee has selected Vanguard ESG funds for the equity allocation of the portfolio. 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: Vanguard Group
Benchmark: 45% FTSE (Financial Times Stock Exchange) All Cap Choice Index, 25% FTSE Global All Cap ex US Choice Index and 30% Barclay’s Aggregate Bond Index (BAGG)
Underlying Investment Vehicle(s): 45% Vanguard ESG US Stock ETF, 25% Vanguard ESG US International Stock ETF, 20% Vanguard Intermediate Treasury, 10% Vanguard Short Term Treasury
Fee: Approximately 12 basis points (.12%)
Socially Responsible performance for quarter ending September 30, 2024.
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 60 basis points (.60%)
Intermediate-Term performance for quarter ending September 30, 2024.
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 Vehicles: Vanguard Treasury Money Market Fund, DFA One Year Fixed Income Portfolio Institutional Fund, and bank CD’s
Fee: Approximately 13 basis points (.13%)
Short-Term performance for quarter ending September 30, 2024.