How We Invest
How We Invest
- Establish a strategic asset allocation which is expected to achieve the Foundation’s long-term return objective to preserve Foundation purchasing power.
- No attempt is made to time the market or change strategy based on near-term outlook.
- Diversify the portfolio by asset class and strategy. This reduces risk and increases the likelihood of achieving the return objective under different economic and market conditions.
- Investments are required to meet socially responsible guidelines.
The Foundation’s assets are well-diversified using a long-term strategic approach.
- 61% of the assets are invested in equity securities, 23% are invested in fixed income, 7% in inflation hedges, 4% in multi strategy hedge and the remaining 5% in direct real estate.
- Within the equity portion of the portfolio, the Foundation invests in large cap, mid cap and small cap companies as well as international and emerging market companies.
- The expected return of the portfolio is 7.8%. This return will allow the Foundation to support its mission, even after adjusting for inflation. While there is risk associated with investing in equities, the return potential over the long-term is significant. Fixed income strategies historically have been less risky, but investing in bonds alone is not likely to provide enough return to support the long-term return objective of the Foundation. Real estate and inflation hedging strategies increases the diversification of the portfolio and assist in managing risk.
How we oversee our portfolio
Investment Committee — Monitors performance, asset allocation, manager allocations and manager style adherence.
Colonial Consulting, LLC — Colonial Consulting is a leading investment consulting firm that focuses on assisting not-for-profits achieve strong investment returns. With their experience, expertise, and in-depth research, they provide valuable investment advice and support our Investment Committee so that the Foundation can meet its long-term mission.
Colonial Consulting produces monthly performance reports for the Foundation, reviews all manager written reports and portfolios and immediately communicates any problems or concerns to the Committee.
|1 Year||3 Year||5 Year||7 Year||10 Year|
|CPI + 5%||7.7%||6.3%||6.4%||6.7%||6.9%|
|60% MSCI AC/40% Barclays Capital Aggregate||9.0%||4.3%||6.1%||6.3%||4.5%|
|Morningstar Moderate Allocation Fund||10.5%||4.4%||6.8%||7.0%||4.5%|
¹The Target Asset Allocation Benchmark is a weighted average of market indices using the Foundation’s strategic asset allocation through time. Comprised of 30% S&P 500, 9% Barclays Intermediate Govt/Corp, 16% MSCI EAFE, 9% Citi World Govt Bond, 7% CPI + 5%, 10% Russell 2500, 5% MSCI Emerging, 5% NCREIF Real Estate, 5% JP Morgan GBI-EM Global Diversified, 4% HFRI Multi-Strategy.