Investment Options and Investment Committee
Community Foundation donors can select from among 4 investment options for their funds. These options vary from conservative to more aggressive and are designed to fit the needs and requirements of our diverse group of donors. The 4 options are:
Central Investment Fund
This fund seeks preservation of principal and is invested in U.S. Treasuries and money market funds. It is the most conservative investment option.
S&P 500 Index Fund
This fund is invested to mirror the returns of the S&P 500 Index.
Specially Invested Funds
The Community Foundation invests these funds with financial consultants, approved by the Investment Committee at the recommendation of a donor. This is another of the special services that the Foundation offers to donors. The Community Foundation has already established relationships with Legg Mason, Merrill Lynch, Salomon Smith Barney, Morgan Stanley, Bernstein Co., Ferris Baker Watts, and will be developing new relationships. Donors may recommend a financial consultant to The Community Foundation, and conversely, financial consultants may introduce prospective donors to The Community Foundation.
Combined Investment Fund
This fund is a pooled fund of the assets of many of the Foundation’s component funds, as well as the component funds of its affiliates. It is managed by Fayez Sarofim & Co. of Houston, Texas (growth manager); Southeastern Asset Management, Inc. of Memphis, Tennessee (value manager); and Loomis Sayles, Inc. of Boston, Massachusetts (fixed income manager). The Combined Investment Fund’s overall financial objective is to invest assets with limited risk. Funds are invested to provide safety through diversification in a portfolio of common stocks, bonds, cash equivalents and other approved investments that represent varying rates of return. A profile of this fund follows below.
The Combined Investment Fund Profile
The Combined Investment Fund, having assets of more than $93 million, is a pooled fund of the assets of many of component funds of The Community Foundation and our three regional affiliate foundations.
On September 30, 2007, the breakdown of the Combined Investment fund was as follows:
Fixed Income Equities: 28.3%
Southern Asset Management: 28.00 (large and mid-cap value)
Russell 100 Growth index: 15.81% (large cap growth)
Thompson Siegel: 7.33 (small cap value)
Delaware Capital Management: 9.42% (international equities)
NWQ: 6.31% (international equities)
UBP: 4.77% (Fund of Funds alternative investment)
We use appropriate benchmark indices to track each of these managers. However, as is our tradition we report against the standard 60/40 (60% S&P 500 index / 40% Lehman Brothers Gov’t/Credit). For the nine months ending September 30, 2007 the combined investment fund has earned 7.40% compared with the 60/40 index return of 7.10%.
Investment Committee
The Community Foundation’s Investment Committee is comprised of members of our Board of Trustees and donors. The key to long-term success is to maintain a strong, intelligent discipline with regard to asset allocation strategy and to use highly skilled investment managers. Our experienced Investment Committee oversees the investment management policies and monitors our investment performance.
Anne Wexler, Chair
Wexler & Walker Public Policy Associates
Hugh McLaughlin
Morgan Stanley
Dan Mayers
Of Counsel, Wilmer Cutler Pickering Hale & Dorr
Sophia Green Robinson
Columbia Equity Financial Corp.
Mark Rothman
The MYTA Corporation
Jonathan Silver
Core Capital Partners
For More Information
Kenny Emson
Senior Vice President, Development and Donor Services
(202) 263-4779
kemson@cfncr.org
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