Combined Investment Fund and Investment Committee
Building capital is synonymous with sound financial stewardship. With over three decades of experience, our record of funds management and investment performance remains strong. A pooled fund consisting of the assets of The Community Foundation’s four component funds, the Combined Investment Fund has assets of over $65 million.
The Foundation’s Combined Investment Fund serves the following overall financial objectives:
· Invest in equity assets to achieve an annual rate of return in excess of the Standard and Poor’s 500 Common Stock Index; and,
· Invest in fixed income assets to achieve an annual rate of return in excess of the Lehman Brothers Government and Corporate Bond Index.
Combined Investment Fund Breakdown
| Fixed Income Equities |
37.78% |
| Southeastern Asset Management |
9.93% (large cap value) |
| Russell 1000 growth Index |
11.64% (large cap growth) |
| Mid Cap Value Index |
5.66% (mid cap value) |
| Thompson Siegel |
6.91% (small cap value) |
| Delaware Capital Management |
8.62% (International equities) |
| NWQ |
9.60% (International equities) |
| UBP Asset Management |
9.86% (Fund of Funds
alternative investment)
|
The combined investment fund was down 27.35% for the year. 2008 saw the largest single year decline in the US stock market since 1931. (S&P 500 down 37.0%, Dow Jones down 31.9%, Russell 2000 down 33.8%). Simultaneous recessions hit in Europe and Japan. (MSCI EAFE down 45.1%) The Investment Committee has increased the Fixed Income position of the portfolio at this time by choosing not to rebalance at year end. The main reason behind this decision is the undervaluation of many of the corporate bonds in the hold to maturity portfolio and their unwillingness to hold a fire sale on these bonds at this time. Additionally, because of recent underperformance the Investment Committee has decided to remove assets from Southeastern Asset Management over the next 10 quarters and replace them with the Russell 1000 Value index.
Combined Investment Fund Returns --- September 30, 2008 - December 31, 2008
|
Fund Manager
|
Return
|
Index Comparison
|
Index Return
|
|
Russell 1000 Growth Index
UBP Asset Mgt
|
-23.68%
-19.81%
|
R1000G
HFRI Fund of Funds
|
-22.84%
-9.29%
|
|
Southeast. Asset Mgt
Thompson Siegel
Mid Cap Value Index
|
-34.70%
-24.04%
-26.54%
|
R1000V
R2000V
Russell Mid Cap Idx
|
-22.19%
-24.88%
-26.33%
|
|
NWQ
Delaware Capital Mgt
|
- 8.65%
-15.34%
|
EAFE
EAFE
|
-20.30%
-20.30%
|
|
Fixed Income
Combined Fund Total
|
0.30%
-15.19%
|
LBGC
S&P 500
Policy Index
|
4.60%
-21.95%
-12.13%
|
Combined Investment Fund Returns --- July 1, 2008 – September 30, 2008
|
Fund Manager
|
Return
|
Index Comparison
|
Index Return
|
|
Russell 1000 Growth Index
UBP Asset Mgt
|
-11.44%
-2.68%
|
R1000G
HFRI Fund of Funds
|
-12.33%
-6.78%
|
|
Southeast. Asset Mgt
Thompson Siegel
Mid Cap Value Index
|
-17.50%
-5.52%
-13.57%
|
R1000V
R2000V
Russell Mid Cap Idx
|
-6.11%
4.96%
-17.75%
|
|
NWQ
Delaware Capital Mgt
|
-18.19%
-15.00%
|
EAFE
EAFE
|
-20.50%
-20.50%
|
|
Fixed Income
Combined Fund Total
|
-6.29%
-10.57%
|
LBGC
Policy Index
|
-1.64%
-5.70%
|
Combined Investment Fund Returns --- April 1, 2008 – June 30, 2008
|
Fund Manager
|
Return
|
Index Comparison
|
Index Return
|
|
Russell 1000 Growth Index
UBP Asset Mgt
|
2.39%
-0.54%
|
R1000G
HFRI Fund of Funds
|
1.25%
-0.96%
|
|
Southeast. Asset Mgt
Thompson Siegel
|
2.39%
5.40%
|
R1000V
R2000V
|
-5.31%
-3.55%
|
|
NWQ
Delaware Capital Mgt
|
1.41%
-1.68%
|
EAFE
EAFE
|
-1.93%
-1.93%
|
|
Fixed Income
Combined Fund Total
|
0.58%
1.36%
|
LBGC
Policy Index
|
-1.51%
-2.24%
|
Combined Investment Fund Returns --- January 1, 2008 – March 31, 2008
|
Fund Manager
|
Return
|
Index Comparison
|
Index Return
|
|
Russell 1000 Growth Index
UBP Asset Mgt
|
-10.28%
-2.95%
|
R1000G
HFRI Fund of Funds
|
-10.20%
-4.76%
|
|
Southeast. Asset Mgt
Thompson Siegel
|
-8.40%
-9.03%
|
R1000V
R2000V
|
-8.70%
-9.90%
|
|
NWQ
Delaware Capital Mgt
|
-3.97%
-9.27%
|
EAFE
EAFE
|
-8.90%
-8.90%
|
|
Fixed Income
Combined Fund Total
|
-0.52%
-5.50%
|
LBGC
Policy Index
|
-0.20%
-5.72%
|
|
Year
|
CFNCR Total
|
60% S&P 500/40% Lehman Gov/Corp
|
|
2007
|
5.34%
|
6.18%
|
|
2006
|
12.67%
|
11.03%
|
|
2005
|
3.97%
|
4.96%
|
|
2004
|
6.68%
|
7.23%
|
|
2003
|
17.59%
|
17.70%
|
|
2002
|
-6.10%
|
-9.61%
|
|
2001
|
6.37%
|
-3.53%
|
|
2000
|
11.58%
|
-0.72%
|
|
1999
|
2.20%
|
10.84%
|
Investment Committee
The Community Foundation’s Investment Committee is comprised of donors and members of the Community Foundation of the National Capital Region’s Board of Trustees. 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
Daniel K. Mayers
Of Counsel, Wilmer Cutler Pickering Hale & Dorr
Hugh McLaughlin
Morgan Stanley
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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