Document Actions
Investment Strategy
Investment Objectives
The Foundation’s assets are assigned to one of four investment pools based on fund type and objective. Donor advised funds may be invested in the Long Term Pool, the Short Term Pool, or the Socially Responsible Pool. Endowment Funds are invested in the Endowment Pool.
The Long Term Pool
is designed for donors wanting to impact both the current needs of the
community and those of future generations.
The investment objective is to serve those needs while maintaining value
over an extended time frame. The
Foundation defines the investment strategy as a diversified portfolio that
provides an inflation-adjusted return consistent with a 5% distribution rate.
The Short Term Pool
is designed for donors wanting to impact current and near-term needs of the
community. The investment objective is
to maintain liquidity for grantmaking.
The Foundation defines the investment strategy as a short duration
portfolio whose return matches or exceeds inflation. This pool is expected to consist of donor
advised funds with relatively low balances, and is also utilized for near-term
grantmaking needs of all donor and endowment funds.
The Socially
Responsible Pool is designed for
donors wanting to impact both the current needs of the community and those of
future generations. The investment
objective is to serve those needs while maintaining value over an extended time
frame, and to do so in a manner consistent with moral and ethical values. The Foundation defines the investment
strategy as a balanced portfolio of securities from issuers screened for social
responsibility in areas such as environment, workplace, product safety, human
rights, community, and corporate governance.
The Endowment Pool
is designed for assets of the Foundation’s endowment. The investment objective is to maintain value
in perpetuity while serving the needs of the community. As with the Long Term Pool, the Foundation
defines the investment strategy as an inflation-adjusted return consistent with
a 5% distribution rate.
Investment Performance
The Foundation is pleased with the historical investment performance achieved. The Long Term Pool and Endowment Pool returns have exceeded their custom global benchmark returns and have surpassed the Foundation’s distribution rate of 5%, while the Short Term Pool return has exceeded the CPI.
Annualized Returns as of June 30, 2006
| 1 Year | 3 Year | 5 Year | |
| Long Term Pool* | 10.7% | 13.2% | 6.9% |
| Endowment Pool* | 10.7% | 13.2% | 6.9% |
| TSFF Market Benchmark | 10.2% | 12.8% | 6.5% |
| Median Community Fdtn** | 9.3% | 10.8% | 5.3% |
| Short Term Pool | 3.8% | 2.4% | 2.6% |
| US Treasury Bills Index | 4.0% | 2.3% | 2.2% |
| US CPI | 4.3% | 3.4% | 2.6% |
| Socially Responsible Pool | 4.0% | 7.4% | 3.2% |
| 70% S&P500 / 30% LB Agg | 5.8% | 8.5% | 3.5% |
| * net of fees ** gross of fees, less 70 bps |
|||