Our Investment Advisory Committee provides guidance and oversight to ensure that all fund pools are invested and managed according to investment best practices for institutional funds.
- Long-Term Investment Pool – This option is best suited for long-term expendable and endowment funds. The pool utilizes a core/satellite construction designed to minimize costs, tracking error and volatility while providing opportunity to exceed our performance index. The core (85% of portfolio) consists of passive investments in equity (65%) and fixed income (35%) assets. The satellite (15% of portfolio) may hold passive or active positions to allow for greater flexibility of portfolio allocations relative to the core portfolio that act as a revenue enhancer to the overall portfolio.
- Socially Responsible Long-Term Investment Pool – Composed of funds that meet a variety of social screens, both positive and exclusionary, this pool employs a strategic asset allocation very similar to our Long-Term Investment Pool. This is the best option for long-term expendable and endowment funds if you prefer socially responsible investments.
- Intermediate Term Investment Pool – This option is intended for funds with a duration of two to five years and is available only for expendable funds. The pool is constructed to have less volatility than the long –term pool, but with higher returns than the short-term pool. The target asset allocation was revised by the Board in late 2015. The pool utilizes a core-satellite construction designed to minimize costs and tracking error. The core (85% of the portfolio) consists of passive investment in equity (25%) and fixed income assets (75%). The satellite may hold passive or active positions to allow for greater flexibility of allocations relative to the core portfolio.
- Short-Term Investment Pool – Only expendable funds use this pool, which invests in money market funds and other short-term cash equivalents. This is the best option for an expendable fund that plans to grant out a significant portion of its money in the near term.
All Community Foundation portfolios are regularly rebalanced to their target allocations to maintain a balanced and diversified investment strategy.
For more information, please contact J Mullineaux at 707.303.9620.